Actg 1B Online Final Review 26th Edition.doc - Accounting...

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Accounting 1B OnlineProfessor MelloFinal ReviewIMPORTANT:THIS IS NOT A STUDY GUIDE.THIS DOCUMENT IS BEINGPROVIDED SO THAT YOU CAN GAIN EXPERIENCE WITH THE TYPES OFQUESTIONS THAT I HAVE ASKED ON PREVIOUS FINAL EXAMS SINCE YOURMIDTERM WAS MULTIPLE CHOICE AND YOUR FINAL WILL BE PROBLEM-BASED.IT ALSO SERVES AS A SOURCE OF ADDITIONAL PRACTICE WITH SOMEOF THE TOPICS COVERED THROUGHOUT THE COURSE.THERE ARE MANYMORE CONCEPTS THAT WE STUDIED AND PRACTICED THROUGHOUT THEQUARTER THAT COULD, AND LIKELY WILL, BE TESTED ON THE FINAL EXAM.ALSO, IF SOME OF THE TOPICS PRESENT IN THIS REVIEW SHOW UP ON YOURFINAL EXAM THEY VERY WELL MAY BE TESTED IN A DIFFERENT FORM, SUCHAS A THEORETICAL SHORT ANSWER QUESTION, CALCULATION, JOURNALENTRY, ANALYSIS, OR FINANCIAL STATEMENT PREPARATION.Question 1 (Chapter 10)Marlow Company purchased equipment on January 1, 2009 for $70,000. It is estimated that theequipment will have a $5,000 salvage value at the end of its 5-year useful life. It is also estimatedthat the equipment will produce 100,000 units over its 5-year life.Answer the following independent questions.1.Compute the amount of depreciation expense for the year ended December 31, 2009, usingthe straight-line method of depreciation.2.If 16,000 units of product are produced in 2009 and 24,000 units are produced in 2010, whatis the book value of the equipment at December 31, 2010? The company uses the units-of-activity depreciation method.3.If the company uses the double-declining-balance method of depreciation, what is thebalance of the Accumulated Depreciation—Equipment account at December 31, 2011?
Question 2 (Chapter 11)
Wellington Company had the following transactions involving notes payable.Nov. 1, 2010Borrows $90,000 from Olathe State Bank by signing a 3-month, 10% note.Dec. 31, 2010Prepares the adjusting entry.Feb. 1, 2011Pays principal and interest to Olathe State Bank.Prepare journal entries for each of the transactions.
Question 3 (Chapter 12)

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Term
Winter
Professor
Lik Hung
Tags
Accounting, Managerial Accounting, Balance Sheet, Depreciation, Generally Accepted Accounting Principles

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