A
The April 30 bank statement for Trimble Corporation shows an ending balance of $36,308. The unadjusted cash account balance was $30,150. The accountant for Trimble gathered the following information:
• There was a deposit in transit for $4,612.
• The bank statement reports a service charge of $84.
• A credit memo included in the bank statement shows interest earned of $335.
• Outstanding checks totaled $11,889.
• The bank statement included a $1,370 NSF check deposited in April.
What is the true cash balance as of April 30?
$29,031
5) The April 30 bank statement for Trimble Corporation shows an ending balance of $34,351. The unadjusted cash account balance was $28,250. The accountant for Trimble gathered the following information:
• There was a deposit in transit for $4,240.
• The bank statement reports a service charge of $39.
• A credit memo included in the bank statement shows interest earned of $95.
• Outstanding checks totaled $10,935.
• The bank statement included a $650 NSF check deposited in April.
What is the true cash balance as of April 30?
$27,656
At March 31, Cummins Company had an unadjusted balance in its cash account of $11,000. At the end of March, the company determined that it had outstanding checks of $1,225, deposits in transit of $750, a bank service charge of $45, and an NSF check from a customer for $225. What is the true cash balance at March 31?
$10,730
The Miller Company earned $127,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $84,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.
What is the net realizable value of Miller's receivables at the end of Year 1?
$39,190
On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.
What is the amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows?
$97,000
On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.
What is the amount of uncollectible accounts expense recognized on the Year 2 income statement?
$2,080
Senath Company’s annual report reveals net credit sales of $240,000 and average accounts receivable of $20,000. The report also shows an average inventory balance of $10,000 and cost of goods of $200,000. Based on this information, the number of days to collect accounts receivable is (treat any partial day as a whole day)
31 days
Fulton Company made a loan of $12,000 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. Write the journal entries to recognize accrued interest in Year 2.
Interest Revenue 180
Interest Receivable 180
Rosewood Company made a loan of $12,200 to one of the company's employees on April 1, Year 1. The one-year note carried a 6% rate of interest. What is the amount of interest revenue that Rosewood would report in Year 1 and Year 2?
$549 in Year 1 and $183 in Year 2
On December 31, Year 3, Bravo Company had an ending balance of $100,000 in its accounts receivable account and an unadjusted (current) balance in its allowance for doubtful accounts account of $200. Bravo estimates uncollectible accounts expense to be 2% of receivables. Based on this information, the amount of uncollectible accounts expense shown on the Year 3 income statement is
$1,800
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,375,000. Harding paid $700,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $740,000; Building, $2,200,000 and Equipment, $1,460,000.
What value will be recorded for the building?
$1,187,500
Chico Company paid $600,000 for a basket purchase that included office furniture, a building and land. An appraiser provided the following estimates of the market values of the assets if they had been purchased separately: Office furniture, $160,000; Building, $500,000, and Land, $130,000. Based on this information, what is the cost that should be allocated to the office furniture? (Round your intermediate percentages to two decimal places: i.e. 0.1589 = 16%.)
$121,500
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $2,755,000. Harding paid $840,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $888,000; Building, $2,640,000 and Equipment, $1,752,000.
What value will be recorded for the building?
$1,377,500
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000.
What value will be recorded for the building?
$950,000
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,900,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $374,000; Building, $1,100,000 and Equipment, $726,000.
Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,000,000 units over its 5-year useful life and has a salvage value of $34,000. Harding produced 265,000 units with the equipment by the end of the first year of purchase. What amount will Harding record for depreciation expense for the equipment in the first year?
$157,145
Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,140,000. Harding paid $245,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $259,000; Building, $770,000 and Equipment, $511,000.
Assume that Harding uses the units-of-production method when depreciating its equipment. Harding estimates that the purchased equipment will produce 1,020,000 units over its 5-year useful life and has a salvage value of $17,000. Harding produced 267,000 units with the equipment by the end of the first year of purchase. What amount will Harding record for depreciation expense for the equipment in the first year?
$94,026
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of depreciation expense recognized on the Year 3 income statement is
$4,000.
On January 1, Year 1, Friedman Company purchased a truck that cost $41,000. The truck had an expected useful life of 100,000 miles over 8 years and an $8,000 salvage value. During Year 2, Friedman drove the truck 20,000 miles. Friedman uses the units-of-production method. What is depreciation expense in Year 2?
$6,600
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of accumulated depreciation shown on the Year 3 balance sheet is
$40,000
On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $8,000 salvage value. If Marino uses the double-declining-balance method, the amount of book value shown on the Year 3 balance sheet is
$8,000
On September 1, Year 1, West Company borrowed $56,000 from Valley Bank. West agreed to pay interest annually at the rate of 6% per year. The note issued by West carried an 18-month term. West Company has a calendar year-end. What is the amount of interest expense that will be reported on West's income statement for Year 1?
$1,120
Write the correct journal entry to record a taxable cash sale of $1,040 if the sales tax rate is 5%?
Cash 1092
Sales Tax Payable 52
Revenue 1,040
Wanderlust Supplies, Incorporated had sales of $150,000 in Year 1. Wanderlust warrants its products and estimates warranty expense to be 5% of sales. Write the journal entries required to recognize the year-end warranty obligation.
Warranty Expense $7,500
Warranty Payable $7,500
What is the current ratio used to evaluate?
Liquidity
Omar Company reported $1,000 of current assets, $3,000 of long-term assets, $400 of current liabilities and $2,600 of long-term liabilities shown on its Year 1 balance sheet. Based on this information Omar’s debt to assets ratio is
0.75