Double-declining-balance method

Business: Double-declining-balance method: Kingston Company purchased a piece of equipment on January 1, 2012. The equipment cost $120,000 and had an estimated life of 8 years and a salvage value of $15,000. What was the depreciation expense for the asset for 2013 under the double-declining-balance method?

$22,500.   

$30,000. 

$13,000. 

$23,438.

Which of the following statements concerning financial statement presentation is not a true statement?

The balances of all individual assets, as they appear in the subsidiary plant ledger, should be disclosed in the footnotes. 

Intangibles are reported separately under Intangible Assets. 

The balances of major classes of assets may be disclosed in the footnotes. 

The balances of the accumulated depreciation of major classes of assets may be disclosed in the footnotes.

The book value of a plant asset is the difference between the

cost of the asset and the amount of depreciation expense for the year. 

replacement cost of the asset and its historical cost. 

cost of the asset and the accumulated depreciation to date.

proceeds received from the sale of the asset and its original cost.

Research and development costs

must be expensed when incurred under generally accepted accounting principles

are classified as intangible assets. 

are capitalized and then amortized over a period not to exceed 40 years. 

should be included in the cost of the patent they relate to.

A company purchased factory equipment on June 1, 2013, for $80,000. It is estimated that the equipment will have a $5,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2013, is

$7,500. 

$3,750. 

$4,375.   

$3,125.

Interest may be included in the acquisition cost of a plant asset

if the asset acquisition is financed by a long-term note payable. 

if it is a part of a lump-sum purchase. 

during the construction period of a self-constructed asset. 

if the asset is purchased on credit.

Gagner Clinic purchases land for $150,000 cash. The clinic assumes $1,500 in property taxes due on the land. The title and attorney fees totaled $1,000. The clinic has the land graded for $2,200. What amount does Gagner Clinic record as the cost for the land?

$150,000 

$132,500 

$154,700   

$132,200

The effective-interest method for amortization of bond discounts is required under

Both GAAP and IFRS. 

GAAP only. 

IFRS only. 

Neither GAAP or IFRS

If bonds can be converted into common stock,

they will carry a higher interest rate than comparable bonds without the conversion feature. 

the bondholder may benefit if the market price of the common stock increases substantially. 

they will be converted only if the issuer calls them in for conversion. 

they will sell at a lower price than comparable bonds without a conversion feature.

The discount on bonds payable or premium on bonds payable is shown on the balance sheet as an adjustment to bonds payable to arrive at the carrying value of the bonds. Indicate the appropriate addition or subtraction to bonds payable:

Premium on               Discount on

Bonds Payable      Bonds Payable

Add                   Add 

Deduct          Add 

Add                  Deduct 

Deduct          Deduct

From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that

income to stockholders may increase as a result of trading on the equity. 

interest must be paid on a periodic basis regardless of earnings. 

the bondholders do not have voting rights. 

bond interest is deductible for tax purposes.

A bondholder that sends in a coupon to receive interest payments must have a(n)

mortgage bond. 

unsecured bond. 

bearer bond. 

serial bond.

A cash register tape shows cash sales of $1,500 and sales taxes of $120. The journal entry to record this information is

Cash1,620

Sales Revenue1,620

Cash1,620

Sales Taxes Payable120

Sales Revenue1,500

Cash1,500

Sales Tax Expense120

Sales Revenue1,620

Cash1,620

Sales Revenue1,500

Sales Taxes Revenue     120

On August 1, 2012, a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest are payable on August 1, 2013. How will the note payable and the related interest be classified in the December 31, 2012, balance sheet?

Notes PayableInterest Payable

Current LiabilityCurrent liability 

Noncurrent LiabilityNot shown 

Current LiabilityNoncurrent liability 

Noncurrent LiabilityCurrent liability

Admire County Bank agrees to lend Givens Brick Company $300,000 on January 1. Givens Brick Company signs a $300,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

Interest Payable12,000

Notes Payable300,000

Interest Expense6,000

Cash           318,000

Notes Payable318,000

Cash              318,000

Notes Payable300,000

Interest Expense18,000

    Cash318,000

Interest Expense18,000

Notes Payable300,000

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Australia Assessments has gained an international reputation of being the leading website in custom assignment writing services. Once you give us the instructions of your paper through the order form, we will complete the rest.

Essays

Essay Writing Services

As we work towards providing the best custom assignment services, our company provides assignment services for any type of academic essay. We will help you develop professionally written essays that are rich in content and free from plagiarism.

Admissions

Admission and Business Papers

Our skilled team of professional writers will ensure that we help you craft a remarkable admission essay for your desired Master's program in your institution of choice. We won't stop there. Once you enter the job market, we will be available to secure you a position at your desired worksite by creating an outstanding portfolio or resume.

Editing

Editing and Proofreading

Our editorial team is always available for all editing and proofreading services. They check completed papers by our writers and also provide professional opinions to papers completed by our clients.

Coursework

Technical papers

We harbor professional academic writers with different qualifications in diverse academic fields. As such, we are capable of handling both simple and technical papers. Ensure that you provide us with correct and complete instructions in the order form.