68.The amount of interest expense appearing on the 2012 income statement would be:    A. $1,200. B. $400. C. $800. D. $2,400. 69.As a result of the recognition of interest expense on 12/31/12,    A. liabilities will increase and assets will decrease. B. assets and liabilities will decrease. C. assets will increase and retained earnings will increase. D. liabilities will increase and retained earnings will decrease. 70.The carrying value of the liability appearing on […]

  11.In the situation described in problem 10, if Lee records the asset and note at $11,800, the overall effect will be a.A correct acquisition cost and correct interest expense b.A correct acquisition cost and understated interest expense c.An understated acquisition cost and understated interest expense d.An overstated acquisition cost and understated interest expense   12.How would the amortization of premium bonds payable affect each […]

  11.Present Value of 1  Periods3%4%5%6%7%8%9%10%12% 30.91510.88900.86380.83960.81630.79380.77220.75130.7118 40.88850.85480.82270.79210.76290.73500.70840.68300.6355 50.86260.82190.78350.74730.71300.68060.64990.62090.5674 60.83750.79030.74620.70500.66630.63020.59630.56450.5066 70.81310.75990.71070.66510.62270.58350.54700.51320.4523 80.78940.73070.67680.62740.58200.54030.50190.46650.4039 90.76640.70260.64460.59190.54390.50020.46040.42410.3606 100.74410.67560.61390.55840.50830.46320.42240.38550.3220 Future Value of 1  Periods3%4%5%6%7%8%9%10%12% 31.09271.12491.15761.19101.22501.25971.29501.33101.4049 41.12551.16991.21551.26251.31081.36051.41161.46411.5735 51.15931.21671.27631.33821.40261.46931.53861.61051.7623 61.19411.26531.34011.41851.50071.58691.67711.77161.9738 71.22991.31591.40711.50361.60581.71381.82801.94872.2107 81.26681.36861.47751.59381.71821.85091.99262.14362.4760 91.30481.42331.55131.68951.83851.99902.17192.35792.7731 101.34391.48021.62891.79081.96722.15892.36742.59373.1058 Present Value of an Annuity of 1  Periods3%4%5%6%7%8%9% 10%12% 32.82862.77512.72322.67302.62432.57712.53132.48692.4018 43.71713.62993.54603.46513.38723.31213.23973.16993.0373 54.57974.45184.32954.21244.10023.99273.88973.79083.6048 65.41725.24215.07574.91734.76654.62294.48594.35534.1114 76.23036.00215.78645.58245.38935.20645.03304.86844.5638 87.01976.73276.46326.20985.97135.74665.53485.33494.9676 97.78617.43537.10786.80176.51526.24695.99525.79505.3282 108.53028.11097.72177.36017.02366.71016.41776.14465.6502 Future Value of an Annuity of 1  Periods3%4%5%6%7%8%9%10%12% 33.09093.12163.15253.18363.21493.24643.27813.31003.3744 44.18364.24654.31014.37464.43994.50614.57314.64104.7793 55.30915.41635.52565.63715.75075.86665.98476.10516.3528 66.46846.63306.80196.97537.15337.33597.52337.71568.1152 77.66257.89838.14208.39388.65408.92289.20049.487210.089 88.89239.21429.54919.897510.26010.63711.02911.43612.300 910.15910.58311.02711.49111.97812.48813.02113.58014.776 1011.46412.00612.57813.18113.81614.48715.19315.93717.549 Future value can be found if […]

    118.Treasury stock should most often be recorded:    A. At cost.   B. Par value.   C. Fair market value at year end.   D. Face value.         119.Treasury stock represents:    A. Shares of ownership in the United States Treasury Department.   B. A current asset.   C. Authorized shares that have never been issued.   D. Previously outstanding shares that have been repurchased by the issuing company.   […]

    101. What is the Red and White’s contribution margin for this month if 980 units were sold?A.  $38,000B.  $18,620C.  $24,500D.  $50,000E.  $21,560     102. What is Red and White’s net income under absorption costing if 980 units are sold and operating expenses are $12,000? A. $(1,380) B. $(2,000) C. $  2,700 D. $  6,620 E. $ 10,620     103. What is […]

    63.Anders Inc, reported that its bonds with a par value of $500,000 and a carrying value of $525,000 was retired for $545,000 resulting in a loss of $20,000. The amounts to be reported under the cash flows include:    A. $45,000 net decrease in cash used for financing activities.   B. $525,000 net decrease in cash used for investing activities.   C. $20,000 increase in cash from […]

  41. Which of the following statements is true?  A. Any cost connected to a cost object is a direct cost. B. Costs that do not have a strong cause-and-effect relationship with a cost driver are called direct costs. C. A cost driver is used to allocate a direct cost when there is a cause-and-effect relationship between the cost and the cost object. D. Fixed costs that do not have […]

  164. The following account balances appear on the balance sheet of Osgood Industries:Common Stock (300,000 shares authorized, $100 par):  $10,000,000Paid-in Capital in Excess of Par – Common Stock:  $2,000,000;Retained earnings:  $45,000,000.The board of directors declared a 2% stock dividend when the market price of the stock was $135 a share.  Osgood reported no income or loss for the current year.Required: (1) Journalize the entries to […]

    21) Fair Play, Inc. paid $3,600 on September 1, 2011 for an 18-month insurance policy beginning on that day. The company recorded the entire amount as prepaid insurance. How much insurance expense should the company show on its income statement for the year ended December 31, 2012? A) $200 B) $2,400 C) $800 D) $3,600   22) Fair Play, Inc. paid $3,600 on […]

  60.Compute the present value of the following single amounts to be received at the end of the specified period at the given interest rate.  61.If you had an investment opportunity that promises to pay you $20,000 in three years and you could earn a 10% annual return investing your money elsewhere, what is the most you should be willing to invest today in this […]