Author: Anonymous

Jak Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows: 1-Jan 31-Dec Accounts receivable $11,500 $14,500 Allowance for uncollectible accounts        400        500 Prepaid rent     6,200     4,100 Accounts payable     9,700   11,200 Jak’s 20X5 net income is $75,000. Net cash provided by operating activities in the Statement of Cash Flows should be

Bully Company has the following items: Common Stock 954,000 Treasury stock 306,000 Deferred income taxes 951,000 Retained earnings 648,000 What total amount should Bully Company report as stockholders’ equity?

For a nonmonetary exchange of plant assets, accounting recognition should not be given to

One factor that is not considered in determining the useful life of an intangible asset is

Bully Company has the following items: Common Stock 941,000 Treasury stock 104,000 Deferred income taxes 126,000 Retained earnings 454,000 What total amount should Bully Company report as stockholders’ equity?

Swalm Company acquired machinery on January 1, 2015 which it depreciated under the straight-line method with an estimated life of fifteen years and no salvage value. On January 1, 2020, Swalm estimated that the remaining life of this machinery was six years with no salvage value. How should this change be accounted for by Swalm?

If the month-end bank statement shows a balance of $143,000, outstanding checks are $46,000, a deposit of $13,000 was in transit at month end, and a check for $1,800 was erroneously charged by the bank against the account, the correct balance in the bank account at month end is

Perry Corp. acquired a tract of land containing an extractable natural resource. Perry is required by its purchase contract to restore the land to a condition suitable for recreational use after it has extracted the natural resource. Geological surveys estimate that the recoverable reserves will be 6,880,000 tons, and that the land will have a value of $1,150,000 after restoration. Relevant cost information follows: Land  $       9,540,000 Estimated restoration costs  $       1,680,000 If Perry maintains no inventories of extracted material, what should be the charge to depletion expense per ton of extracted material?

EXTRA CREDIT: 5.4 points Magnolia Co. had a sheet metal cutter that cost $135,000 on January 5, 2016. This old cutter had an estimated life of eight years and a salvage value of $21,000. On April 3, 2021, the old cutter is exchanged for a new cutter with a fair value of $70,000. The exchange lacked commercial substance. Magnolia also received $20,000 cash. Assume that the last fiscal period ended on December 31, 2020, and that straight-line depreciation is used. Calculate the total gain or loss. Round to the nearest dollar. [class] of $[amount]   Prepare all entries that are necessary on April 3, 2021. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round to the nearest dollar. If the line or entry is not necessary, enter “no entry” and input 0 for the amount.) Account Titles and Explanation   Debit Credit To record depreciation expense   [dr1T] [dr1]                    [cr1T] [cr1] To record exchange of machinery   [dr2T] [dr2] [dr3T] [dr3] [dr4T] [dr4] [dr5T] [dr5]                 [cr2T] [cr2]                  [cr3T] [cr3]

What interest rate (the nearest percent) must Lee earn on a $552,000 investment today so that he will have $1,198,000 after 9 years?