hw #3 solutions

hw #3 solutions - a. $195,000. b. $225,000. c. $795,000. d....

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Lab Homework #3 Name:__________________________________ 1 Which of the following is a contra account? a. Premium on bonds payable b. Unearned revenue c. Patents d. Accumulated depreciation 2. Fulton Company owns the following investments: Trading securities (fair value) $120,000 Available-for-sale securities (fair value) 70,000 Held-to-maturity securities (amortized cost) 94,000 If the available for sale securities will not be sold for two years and the maturity value of the Held-to-Maturity Securities is five years off, Fulton will report investments in its current assets section of a. $0. b. exactly $120,000. c. $120,000 or an amount greater than $120,000, depending on the circumstances. d. exactly $190,000. 3. For Grimmett Company, the following information is available: Capitalized leases $600,000 Trademarks 195,000 Long-term receivables 225,000 In Grimmett’s balance sheet, intangible assets should be reported at
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Unformatted text preview: a. $195,000. b. $225,000. c. $795,000. d. $825,000. 4. Presented below are data for Caracas Corp. 2013 2014 Assets, January 1 $4,560 ? Liabilities, January 1 ? $2,736 Retained Earnings, Jan. 1 ? 2,750 Dividends 570 646 Common Stock 608 650 Retained Earnings, Dec. 31 ? 2,166 Net Income 684 ? Net income for 2014 is a. $584 income. b. $584 loss. c. $62 loss. d. $62 income . 5 During 2012 the DLD Company had a net income of $55,000. In addition, selected accounts showed the following changes: Accounts Receivable $3,000 increase Accounts Payable 1,000 increase Building 4,000 decrease Depreciation Expense 1,500 increase Bonds Payable 8,000 increase What was the amount of cash provided by operating activities? a. $54,500 b. $55,000 c. $56,500 d. $64,500...
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This note was uploaded on 03/20/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.

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hw #3 solutions - a. $195,000. b. $225,000. c. $795,000. d....

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