ACCT 201A Exam #3 comprehensive
Questions and Answers with Verified
Solutions
Question 1:
A major disadvantage of a corporation is Additional Taxes
Answer:
Question 2:
ABC Corp. issues 1,000 shares of $10 par value common stock at $12
per share. When the transaction is recorded, credits are made to
Answer:
Common Stock $10,000 and Paid-In Capital in Excess of Stated Value
$2,000
Question 3:
Additions to plant assets are
Answer:
Capital Expenditures
,Question 4:
Bennie Razor Company has decided to sell one of its old manufacturing
machines on June 30, 2022. The machine was purchased for $80,000 on
January 1, 2018, and was depreciated on a straight-line basis for 10
years assuming no salvage value. If the machine was sold for $26,000,
what was the amount of the gain or loss recorded at the time of the sale?
Answer:
$18,000 loss
Question 5:
Cuso Company purchased equipment on January 1, 2021, at a total
invoice cost of $400,000. The equipment has an estimated salvage value
of $10,000 and an estimated useful life of 5 years. What is the amount of
accumulated depreciation at December 31, 2022, if the straight-line
method of depreciation is used?
Answer:
$156,000
Question 6:
Depreciation is a process of
Answer:
Cost Allocation
Question 7:
Entries for cash dividends are required on the
Answer:
Declaration date and the payment date
, Question 8:
Howard Corporation issued a 20-year mortgage note payable on January
1, 2022. At December 31, 2022, the unpaid principal balance will be
reported as
Answer:
Part current and part long-term liability
Question 9:
If a company reports goodwill as an intangible asset on its books, what is
the one thing you know with certainty?
Answer:
The company purchased another company
Question 10:
If everything else is held constant, earnings per share is increased by
Answer:
The purchase of treasury stock
Question 11:
Is part of paid-in capital
Answer:
In the stockholders' equity section of the balance sheet, common stock
Question 12:
In the stockholders' equity section, the cost of treasury stock is deducted
from
Answer:
Total paid-in capital and retained earnings
Questions and Answers with Verified
Solutions
Question 1:
A major disadvantage of a corporation is Additional Taxes
Answer:
Question 2:
ABC Corp. issues 1,000 shares of $10 par value common stock at $12
per share. When the transaction is recorded, credits are made to
Answer:
Common Stock $10,000 and Paid-In Capital in Excess of Stated Value
$2,000
Question 3:
Additions to plant assets are
Answer:
Capital Expenditures
,Question 4:
Bennie Razor Company has decided to sell one of its old manufacturing
machines on June 30, 2022. The machine was purchased for $80,000 on
January 1, 2018, and was depreciated on a straight-line basis for 10
years assuming no salvage value. If the machine was sold for $26,000,
what was the amount of the gain or loss recorded at the time of the sale?
Answer:
$18,000 loss
Question 5:
Cuso Company purchased equipment on January 1, 2021, at a total
invoice cost of $400,000. The equipment has an estimated salvage value
of $10,000 and an estimated useful life of 5 years. What is the amount of
accumulated depreciation at December 31, 2022, if the straight-line
method of depreciation is used?
Answer:
$156,000
Question 6:
Depreciation is a process of
Answer:
Cost Allocation
Question 7:
Entries for cash dividends are required on the
Answer:
Declaration date and the payment date
, Question 8:
Howard Corporation issued a 20-year mortgage note payable on January
1, 2022. At December 31, 2022, the unpaid principal balance will be
reported as
Answer:
Part current and part long-term liability
Question 9:
If a company reports goodwill as an intangible asset on its books, what is
the one thing you know with certainty?
Answer:
The company purchased another company
Question 10:
If everything else is held constant, earnings per share is increased by
Answer:
The purchase of treasury stock
Question 11:
Is part of paid-in capital
Answer:
In the stockholders' equity section of the balance sheet, common stock
Question 12:
In the stockholders' equity section, the cost of treasury stock is deducted
from
Answer:
Total paid-in capital and retained earnings
