Receivables
What are the two uncollectible methods?
1. Direct write off
2. Allowance method
What is the formula for Depreciable cost?
Cost-Residual Value
The total compensation earned by an employee is called?
Gross Earnings/pay
In a partnership, mutual agency means
An act by a partner is judged as binding on other partners depending on whether the act appears to be appropriate for the partnership.
If a corporation has only one class of stock, it is referred to as
Common Stock
What is the journal entry to write off an account using the allowance method?
DR:Allowance for Doubtful Accounts
CR: Accounts Receivable
What is the journal entry to record the sale of an asset at a price higher than the book value?
Debit Cash
Debit Accumulated Depreciation
Credit Asset
Credit Gain on sale of asset
With an interest-bearing note, the amount of assets received upon issuance of the note is generally equal to?
The note's face value.
A partner invests into a partnership a building with an original cost of $80,000 and accumulated depreciation of $30,000. This building has a $75,000 fair market value. As a result of the investment, the partner’s capital account will be credited for?
$75,000
What is the journal entry when a company requires its own stock by paying cash?
Debit Treasury Stock
Credit Cash
What are the Characteristics of a promissory note?
Maker
Payee
Face amount
Issuance Date
Due date
Term
Interest
What is the depreciation expense as of December 31st for an equipment purchase on March 8th for $8000, with a residual value of $500 and a useful life of 5 years?
$1,250.00
What is the proceed that will be received for the below discounted note:
Face Amount $350,000 250 days, 8%
$330,555.56
$350,000 -($350,000*8*250/360)
In the liquidation of a partnership, any gain or loss on the realization of noncash assets should be allocated
to the partners on the basis of their income-sharing ratio
What is the company's earnings per share?
Preferred Dividends-$25,000
Common Dividends-$15,000
Net Income -$90,000
Shares Outstanding-$60,000
Earnings per Share = Net Income – Preferred/ Dividends Average Number of Common Shares Outstanding
$1.08
Same Day Surgery Center received a 120-day, 6% note for $40,000, dated March 14, from a patient on account. a. Determine the due date of the note.
July 12
March 17 days (31 – 14)
April 30 days
May 31 days
June 30 days
July 12 days
Total 120 days
LKD acquired mineral rights for $127,500,000. The mineral deposit is estimated at 425,000,000 tons. During the current year, 42,000,000 tons were mined and sold. Determine the depletion expense.
$12,600,000
$0.3 x 42,000,000
$127,500,000/425,000,000= $0.3
Jane regular rate of pay is $12 per hour, with 1.5 times her regular rate for any hours which exceed 40 hours per week. She worked 48 hours last week. Therefore, her gross wages were
$624.00
40 hours * $12=$480.00
8 hours * $18=$144.00
Jill Grier's capital statement reveals that her drawings during the year were $50,000. She made an additional capital investment of $25,000 and her share of the net loss for the year was $10,000. Her ending capital balance was $200,000. What was Jill Grier's beginning capital balance?
$235,000
New Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to
Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000.
Using the allowance method, the uncollectible accounts for the year are estimated to be $28,000. If the balance for the Allowance for Doubtful Accounts is a $7,000 debit before adjustment, what is the amount of bad debts expense for the period?
$35,000
XYZ Company purchased tool sharpening equipment on October 1 for $108,000. The equipment has a residual value of $7,200. The equipment was used for 1,350 hours during Year 1, 4,200 hours in Year 2, 3,650 hours in Year 3, and 2,800 hours in Year 4.
A. Calculate the depreciation expense for the second year.
$35,280.00
Total Hours (1350 + 4,200 + 3650 + 2800) = $12,000 hours
$108,000-$7,200/12000=$8.40
Year 2 4200 x $8.40 = $35,280
A 180 days discounted note was issued on November 02 with the following terms:
Interest 8%
Face Value $250,000
Determine how much interest will be accrued as at December 31.
No Interest will be accrued. Interest is recorded at Issuance for discounted note.
Partners John and Jane have agreed to share profits and losses in an 4:1 ratio, respectively, after John is allowed a salary allowance of $70,000 and Jane is allowed a salary allowance of $40,000. If the partnership had net income of $140,000 for 2008, Jane share of the remaining income would be
$6,000.00
On January 2, 2005, Riley Corporation issued 20,000 shares of 6% cumulative preferred stock at $100 par value. On December 31, 2008, Riley Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
$480,000