Answered: The entry to replenish a petty cash…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section19.6: Buying Intangible Assets And Calculating Amortization Expense

Problem 1OYO

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The entry to replenish a petty cash fund includes a credit to Select one: A. Cash. B. Freight-in. C. Petty Cash. D. Postage Expense. Presto Company purchased equipment and these costs were incurred: Cash price $65,000 Sales taxes 3,600 Insurance during transit 640 Installation and testing 860 Total costs $70,100 Presto will record the acquisition cost of the equipment as Select one: a. $65,000. b. $68,600 c. $69,240. d. $70,100. Grimwood Trucking purchased a tractor trailer for $171,500. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $24,500. If the truck is driven 90,000 miles in its first year, how much depreciation expense should Grimwood record? Select one: a. $12,250 b. $13,230 c. $14,292 d. $15,435 Sargent Corporation bought equipment on January 1, 2017. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. Assuming straight-line deprecation, the book value of the equipment at the beginning of the third year would be Select one: a. $260,000. b. $150,000. c. $360,000. d. $100,000. Three accounting issues associated with accounts receivable are Select one: a. depreciating, returns, and valuing. b. recognizing, valuing, and disposing. c. depreciating, valuing, and collecting. d. accrual, bad debts, and disposing. Kingston Company purchased a piece of equipment on January 1, 2016. The equipment cost $200,000 and had an estimated life of 8 years and a salvage value of $25,000. What was the depreciation expense for the asset for 2017 under the double-declining-balance method? Select one: a. $37,500. b. $50,000. c. $21,667. d. $39,063.

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