ACC201 module 8 quiz

Question

ACC201 module 8 quiz

Question # 00024133 Posted By: mac123 Updated on: 08/25/2014 08:34 AM Due on: 08/31/2014

Subject Accounting Topic Accounting Tutorials:

Question

1.

value:
2.00 points

The useful life of a plant asset is:

	The length of time it is used productively in a company's operations.
	Never related to its physical life.
	Its productive life, but not to exceed one year.
	Determined by the FASB.
	Determined by law.

2.

value:
2.00 points

A company used straight-line depreciation for an item of equipment that cost $12,000, had a salvage value of $2,000, and had a five-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,200 and its total useful life was increased from five years to six years. Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

	$1,000
	$1,800
	$1,467
	$1,600
	$2,160

3.

value:
2.00 points

Total asset turnover is used to evaluate:

	The efficiency of management's use of assets to generate sales.
	The need for asset replacement.
	The number of times operating assets were sold during the year.
	The cash flows used to acquire assets.
	The relation between asset cost and book value.

4.

value:
2.00 points

Land improvements are:

Assets that increase the usefulness of land and, like land, are not depreciated.

Assets that increase the usefulness of land but that have a limited useful life and are subject to depreciation.

Included in the cost of the land account.

Expensed in the period incurred.

Also called basket purchases.

5.

value:
2.00 points

A depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate each period to the asset's beginning book value is called:

	Book value depreciation.
	Declining-balance depreciation.
	Straight-line depreciation.
	Units-of-production depreciation.
	Modified accelerated cost recovery system (MACRS) depreciation.

6.

value:
2.00 points

A company borrowed $300,000 cash from the bank by signing a five-year, 8% installment note. The present value factor for an annuity at 8% for five years is 3.9927. Each annuity payment equals $75,137. How much cash did the company receive from the bank on the day they borrowed this money?

$75,137

$94,013

$300,000

$375,685

$1,197,810

Top of Form

7.

value:
2.00 points

A company issues bonds at par on April 1. These 9% bonds have a par value of $100,000 and pay interest annually. April 1, is four months after the most recent interest payment date. How much total cash interest is received on April 1 by the bond issuer?

	$750
	$5,250
	$1,500
	$3,000
	$6,000

8.

value:
2.00 points

Secured bonds:

	Are also referred to as debentures.
	Have specific assets of the issuing company pledged as collateral.
	Are backed by the issuer's bank.
	Are subordinated to those of other unsecured liabilities.
	Are the same as sinking fund bonds.

Top of Form

9.

value:
2.00 points

Bonds that mature at different dates and end up with the total principal repaid gradually over a number of periods are referred to as:

	tered bonds
	Bearer bonds
	Callable bonds
	Sinking fund bonds
	Serial bonds

10.

value:
2.00 points

A bond sells at a discount when the:

	Contract rate is above the market rate.
	Contract rate is equal to the market rate.
	Contract rate is below the market rate.
	Bond has a short-term life.
	Bond pays interest only once a year.

11.

value:
20.00 points

Dobbs Company issues 5%, two-year bonds, on December 31, 2013, with a par value of $90,000 and semiannual interest payments.

Semiannual Period-End	Unamortized Discount	Carrying Value
(0)	12/31/2013		$	5,800	$	84,200
(1)	6/30/2014			4,350		85,650
(2)	12/31/2014			2,900		87,100
(3)	6/30/2015			1,450		88,550
(4)	12/31/2015			0		90,000

Use the above straight-line bond amortization table and prepare journal entries for the following.

Required:
(a)	The issuance of bonds on December 31, 2013.

(b)	The first through fourth interest payments on each June 30 and December 31.

(c)	The maturity of the bond on December 31, 2015.

12.

value:
20.00 points

Woodwick Company issues 10%, five-year bonds, on December 31, 2012, with a par value of $110,000 and semiannual interest payments.

Semiannual Period-End	Unamortized Premium	Carrying Value
(0)	12/31/2012		$	8,311	$	118,311
(1)	6/30/2013			7,480		117,480
(2)	12/31/2013			6,649		116,649

Use the above straight-line bond amortization table and prepare journal entries for the following.

(a)	The issuance of bonds on December 31, 2012.
(b)	The first interest payment on June 30, 2013.
(c)	The second interest payment on December 31, 2013.

13.

value:
20.00 points

In early January 2013, NewTech purchases computer equipment for $162,000 to use in operating activities for the next four years. It estimates the equipment’s salvage value at $29,000.

Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation.

14.

value:
20.00 points

On April 1, 2012, Cyclone’s Backhoe Co. purchases a trencher for $320,000. The machine is expected to last four years and have a salvage value of $32,000.

Compute depreciation expense for both 2012 and 2013 assuming the company uses the straight-line method.

Bottom of Form

Rating:

4.9/5

Tutorials for this Question

Recent Feedback

Rated By	Feedback	Comments	Rated On
d...v05		Provide reliable and excellent services	01/15/2015
sc...urg		Awesome quality	11/19/2014

Get the Solution

Great! We have found the solution of this question!

score 4 · Accepted Answer · 08/25/2014 08:38 AM

Solution: ACC201 module 8 quiz

Tutorial # 00023526 Posted By: mac123 Posted on: 08/25/2014 08:38 AM

Puchased By: 4

Tutorial Preview

The solution of ACC201 module 8 quiz...

Get the Solution

Attachments

ACC201_module_8_quiz.docx (364.22 KB)

ACC201 module 8 quiz

Solution: ACC201 module 8 quiz

Related Questions and Answers

Whatsapp our consultant to discuss your concerns happy to help :)

Lisa