Learning Objective 8-2   1) A difference between preferred stock and common stock is preferred shareholders ________. A) have voting rights, while common shareholders do not B) have the right to share in any assets left if the company goes out of business after both the creditors and common shareholders receive their share C) have the right to buy new shares in order to […]

    Matching Questions 1. For each of the following situations in A through D, indicate the abbreviation of the table that should be used to solve for the solution requested. Place the abbreviation of the respective table in the space provided. You may use each table more than once or not at all. Tables PVOA   Present value of an ordinary annuity PVAD   Present value […]

  11) Both fixed and variable costs are allocated according to capacity used. The fixed and variable costs allocated to the Barbell Department are A) $30,000 and $50,000, respectively. B) $30,000 and $60,000, respectively. C) $30,000 and $75,000 respectively. D) $40,000 and $60,000, respectively. E) $60,000 and $40,000, respectively.   12) Both fixed and variable costs are allocated according to capacity used. The fixed and […]

  129. A company purchased new computers at a cost of $14,000 on September 30. The computers are estimated to have a useful life of 4 years and a salvage value of $2,000. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the computers for the first year ended December 31?  A. $250 B. $750 C. $875 D. $1,000 E. $3,000 130. The balance in […]

    61. A company issued 60 shares of $100 par value stock for $7,000 cash. The total amount of paid-in capital in excess of par is: A. $100B. $600C. $1,000D. $6,000E. $7,000     62. A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market value of $60,000. The entry to record this exchange is: A. Land 60,000   Common Stock   50,000 Paid-In […]

    21.Arch Associates reports the following comparative balance sheets and income statement information.    The amount of cash revenue received from customers during 2014 was:    A. $66,000.   B. $62,000.   C. $74,000.   D. $70,000.     22.Arch Associates reports the following comparative balance sheets and income statement information.    The amount of cash paid for inventory purchases during 2014 was:    A. $40,000.   B. $32,000.   C. $22,000.   D. $36,000.     23.Arch […]

  71. Which of the following is NOT an example of a cost that varies in total as the number of units produced changes? A. Electricity per KWH to operate factory equipmentB. Direct materials costC. Insurance premiums on factory buildingD. Wages of assembly worker 72. Which of the following describes the behavior of the variable cost per unit? A. Varies in increasing proportion with changes in the activity levelB. Varies in decreasing proportion with changes […]

    51.Bonds with a face value of $200,000 were issued at 103. The entry to record the issuance will include a debit to the Cash account for    A. $206,000.   B. $200,000.   C. $103,000.   D. $230,000.         52.The Premium on Bonds Payable account is shown    A. in the Current Assets section of the balance sheet.   B. in the Current Liabilities section of the balance […]

  71.The term “FOB Destination” means    A. The seller pays the shipping cost. B. The buyer records an increase in inventory. C. The buyer pays the shipping cost. D. The buyer assumes ownership of the goods during shipment. 72.A discount given to encourage prompt payment is called:    A. a cash discount. B. a sales discount by the seller. C. a purchase discount by the buyer. D. all of these are correct. 73.Leonard Company […]

  21) Allied Industries purchased a piece of equipment for $65,000 with an estimated salvage value of $15,000 on January 1. Its estimated life is 5 years. To the nearest dollar, what is the equipment’s depreciation using double-declining-balance for year 2? A) $ 26,000 B) $ 20,000 C) $ 15,600 D) $ 12,000 22) Digital Solutions has a delivery truck that was purchased for $42,000 […]