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Accounting Please HELP PLEASE !!! ?

These are the one I am having issues with: Any help would be grateful!!

1.Brigh Co. holds Park Co.'s $20,000, 9%note, The entry by Bright Co. when the note is collected, assuming no interest has previously been accrued is:

(a) Cash 20,000

Notes Receivable 20,000

(b) Accounts Receivable 20,600

Notes Receivable 20,000

Internest Revenue 600

(c) Cash 20,600

Notes receivable 20,000

Interest Revenue 600

(d) Accounts Receivable 20,600

Notes Revenue 20,000

Interest Revenue 600

2. A machine with a cost of $65,000 has an estimated residual value of $5,000 estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used for 5,000 hours?

(a) $8,000

(b) $20,000

(c) $12,000

(d) 21,667

3. Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. due to obsolescense, it was determined depreciation expense for the current and future year is ____.

(a) $5,500

(b) $11,000

(c)$10,000

(d)$5,000

4. A fixed asset with a cost of $40,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is ____.

(a) $1,000

(b) $3,500

(c) $500

(d) $1,500

6.On June 8, Acme Co. issued an $80,000, 6%, 120-note payable to Still Co. Assume that the fiscal year of Still Co. ends June 30. What is the amount of interest revenue recognized by Still in the following year?

7. Treasury stock which was purchased for $2,000 is sold for $2,500. As a result of these two transaction combined______.

(a) income will be increased by $500

(b) stockholders' equity will be increased by $2,500

(c) stockholder's equity will be increased by $500

(d) stockholders' equity will not change

8. A corporation has 50,000 shares of $28 par value stock outstanding that has a current market value of $160. If the corporation isses 4-for-1 stock split, the market value of the stock will fall to approximately_____.

(a) $7

(b) $112

(c) $40

(d) 640

Update:

# 6, mutliple choice answers:

(a) $1,200.00

(b) $1,208.89

(c) $1,306.67

(d) $1,600.00

1 Answer

Relevance
  • Favourite answer

    1.) C

    2.)B- 65000-5000/15000=4 X 5000=20000

    3.)D- 80000-5000=75000/15=5000

    4.)C I think- Im not 100% on that one.... but I think it goes like 40000-36500=3500-3000=500

    6.)C- First, 80000*.06*.3333333=1600/120=13.33333*22=293.33 Then, 1600-293.33=1306.67

    7 and 8 I dunno how to do yet....Hope I helped....If you need anything else lemme know....

    Source(s): Accounting major
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