18 abc inc purchased a machine on january 1 2015 for

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Financial Accounting: The Impact on Decision Makers
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Chapter 8 / Exercise 8-5
Financial Accounting: The Impact on Decision Makers
Norton/Porter
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18. ABC Inc purchased a machine on January 1, 2015, for $111,433. At the time of purchase, the machine was estimated to have a life of seven years and a residual value of $37,750. On January 1 2017, the company determined that the machine had a total useful life of ten years (another eight years left) and a residual value of $45,000. If the company uses the straight-line method of depreciation, what will be the depreciation expense for the machine in 2017?
19. Plant assets are sometimes wrecked in accidents or destroyed by fire, flood, storm, and other causes. If the asset was not insured, the loss is equal to the book value. If the asset was insured, only the amount of the loss exceeding the amount to be recovered from the insurance company would be considered a loss.
20. You are given the following information: Capital Stock, $80,000 ($80 par) Paid-In Capital in Excess of Par Value—Common, $200,000 and Retained Earnings, $400,000 Assuming that there is only one class of stock and that all stock was issued on the same day, what was the sales price of each share?
21. Which one of the following statements would justify the fact that common stock shares issued exceed common stock shares outstanding?
22. Company Giga declared a cash dividend in December 2016, payable in March 2017. Retained Earnings would?
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Financial Accounting: The Impact on Decision Makers
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Chapter 8 / Exercise 8-5
Financial Accounting: The Impact on Decision Makers
Norton/Porter
Expert Verified
23. Company Giga pays 5 shares of stock in Company Jojo to each of Giga's shareholder. This is an example of:
24. The price-earnings ratio equals the current market price per share of common stock divided by EPS. The price-earnings ratio indicates how confident investors feel about a stock's future income potential as compared to other stocks.
25. The following transactions occurred during November: Nov. 1 Sent bills to clients for services provided in August in the amount of $12,000. Nov. 9 Purchased office furniture of $4,000 and office supplies of $150 from Office Depot receiving an invoice for $4,150. The invoice is due in 60 days. Nov. 15 Paid for the office furniture and supplies purchased from Office Depot. Nov. 23 Received a $350 bill from WKRP Radio for advertising. The bill is due in 30 days. Nov. 30 Paid salaries of $2,500 to employees. The journal entry to record the bills sent to clients will include a debit of $12,000 to?
26. Same transactions as before…. The journal entry to record the purchase of office equipment and supplies will include a credit to?
27. Same transactions as before… The journal entry to record the bill received from WKRP Radio will include a debit to?
28. Same transactions as before… The journal entry to record payment of the salaries will include a credit to?

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