Description of this paper

ACC - The Value of Money Assignment

Description

solution


Question

Question;The Value of Money;1. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectible accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the percent of credit sales as its method of estimating uncollectible accounts?A. $5,067B. $4,250C. $7,159D. $5,525;2. Brandon Company completed an aging of its accounts receivable and came up with an estimated amount of $6,342. The credit sales for the period are $85,000. The balance in the allowance for doubtful accounts is a debit of $817. If Brandon uses 5% of credit sales as its estimating uncollectable accounts, how much will the credit be to the allowance for doubtful accounts if Brandon uses the estimate of aging receivables as its method of estimating uncollectable accounts?A. $7,159B. $5,067C. $4,250D. $5,525;3. Which of the following is not a benefit to extending credit to customers?A. Wider range of customersB. Increased profitsC. Increased revenuesD. Bad-debt expenses;4. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000, item B was appraised at $55,000, and item C was appraised at $60,000. The purchase price was $125,000. The amount at which item C should be recorded (rounded to the nearest dollar) isA. $72,000.B. $83,300.C. $29,167.D. $50,000.;5. Which of the following marketable securities are reported at market value on the balance sheet date?A. Held-to-maturities securitiesB. Available-for-sale securitiesC. Trading securitiesD. Available-for-sale and trading securities;6. Brandon Corporation purchased a vein of mineral ore for $3,250,000. It is estimated that 15,000,000 tons of ore are available to be extracted. The salvage value is determined to be $400,000. The estimation depletion expense for this year's extraction of 1,760,000 tons of ore (rounded to the nearest dollar) isA. $428,267.B. $381,333.C. $334,400.D. $400,000.;7. Cash equivalents areA. not liquid and carry high risk.B. very liquid and carry little risk.C. not liquid and carry little risk.D. very liquid and carry high risk.;8. Casey Company's bank statement shows a bank balance of $43,267. The statement shows a bank service charge of $50 and a bank collection of $760 in Casey Company's behalf. Casey's book balance should be adjusted by a total ofA. +$710.B. +$810.C. ?$710.D. +$760.;9. Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (roundedto the nearest cent)A. $119.84.B. $2,943.00.C. $2,819.84.D. $2,821.50.;10. Which marketable securities are reported at cost on the balance sheet date?A. Held-to-maturity securitiesB. Available-for-sale securitiesC. Trading and held-to-maturity securitiesD. Trading securities;11. Jewell Company has current assets of $56,000, long-term assets of $135,000, current liabilities of $44,000, and long-term liabilities of $90,000. Jewell Company's debt ratio is;A. 78.6%.B. 127.3%.C. 70.2%.D. 239.3%.;12. Using a 360-day year, the maturity value of a 69-day note for $1,500 at 7% annual interest is (roundedto the nearest cent)A. $1,605.00.B. $20.13.C. $1,520.13.D. $1,584,88.;13. Margaret is a customer of Tammy Company. The company wrote off her account of $1,200 on August15. On October 12, she sent in a payment of $560. What will Tammy Company record first to reinstateher account?A. Debit Cash, credit Accounts Receivable/Margaret.B. Debit Uncollectible Accounts Expense, credit Accounts Receivable/Margaret.C. Debit Accounts Receivable/Margaret, credit Allowance for Doubtful Accounts.D. Debit Allowance for Doubtful Accounts, credit Accounts Receivable/Margaret.;14. Nick Company has cash of $33,000, net accounts receivable of $41,000, short-term investments of $15,000, and inventory of $25,000. It also has $30,000 in current liabilities and $50,000 in long-termliabilities. The quick ratio for Nick Company isA. 3.80.B. 2.97.C. 1.78.D. 3.30.;15. Rick Company has cash of $143,000, net accounts receivable of $89,000, short-term investments of $35,000, and prepaid expenses of $40,000. It also has $50,000 in current liabilities and $80,000 in longterm liabilities. The quick ratio for Rick Company isA. 3.34.B. 4.64.C. 6.14.D. 5.34.;16. Research and development costs (R&D) are generallyA. listed as "other intangibles" on the balance sheet.B. listed as "long-term assets" on the balance sheet.C. expensed and become part of the income statement.D. listed as "current assets" on the balance sheet.;17. Meranda Corporation purchases a machine for $125,000. It has an estimated salvage value of $10,000 and is expected to produce 50,000 units in its lifetime. During the first year of operation, it produced 14,500 units. To the nearest dollar, the depreciation for the first year under the units of production methodwill beA. $31,250.B. $35,500.C. $33,350.D. $36,250.;18. A patent has amortization this year of $2,300. The journal entry would beA. debit Amortization Expense - Patent, $2,300, credit Accumulated Depreciation - Patent, $2,300.B. debit Amortization Expense - Patent, $2,300, credit Patent, $2,300.C. debit Accumulated Amortization - Patent, $2,300, credit Patent, $2,300.D. debit Accumulated Amortization - Patent, $2,300, credit Amortization Expense - Patent, $2,300.;19. By not accruing warranty expense,A. reported liabilities will be overstated, and net income will be understated.B. reported liabilities will be understated, and net income will be overstated.C. reported expenses will be understated, and net income will be understated.D. reported expenses will be overstated, and reported liabilities will be understated.;20. Ryan Corporation made a basket purchase of three items. Item A was appraised at $35,000, item B was appraised at $55,000, and item C was appraised at $60,000. The purchase price was $125,000. The amount at which item B should be recorded isA. ($55,000/$150,000) ? $125,000.B. ($55,000/$95,000) ? $150,000.C. ($55,000/$125,000) ? $150,000.D. ($55,000/$95,000) ? $125,000.

 

Paper#43293 | Written in 18-Jul-2015

Price : $19
SiteLock