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The Tinsley Company exchanged land that it had been holding for future plant expansion for a more suitable parcel located farther from residential areas. Tinsley carried the land at its original cost of $25,000. According to an independent appraisal, the land currently is worth $73,000. Tinsley paid $15,000 in cash to complete the transaction Question The journal entries for this transaction would not include: a Gain for $48.000 debit to Land New for $40,000 a credit to Land Old for $25,000 a credit to Cash for $15.000 Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $2,000,000,8% note $8,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, 2018 $520,000 September 30, 2018 600,000 November 30, 2018 600,000 January 30, 2019 540,000 The company's fiscal year-end is December 31 Question The amount of interest capitalized for 2018 would be $95.200 O 5.760 $95 320 LLUISUJU 890941&content id= 2366226.1&stepenull Thornton Industries began construction of a warehouse on July 1, 2018. The project was completed on March 31, 2019. No new loans were required to fund construction. Thornton does have the following two interest-bearing liabilities that were outstanding throughout the construction period: $2,000,000, 8% note $8,000,000, 5% bonds Construction expenditures incurred were as follows: July 1, 2018 September 30, 2018 November 30, 2018 January 30, 2019 $520,000 600,000 600,000 540,000 The company's fiscal year-end is December 31, Question The total value of the warehouse at the end of construction would be: $2,288,000 $2,315,241 $1,745,760 O $2,260,000 Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2020 with an allowance for sales returns of $200,000. During the year, Halifax sold merchandise on account for $12,000,000. This merchandise cost Halifax $8,520,000. Also during the year, customers returned $450,000 in sales for credit. Sales returns, estimated to be 4% of sales, are recorded as an adjusting entry at the end of the year. Question What is the year and balance in allowance for sales returns after the adjusting entry is recorded? $480,000 $450,000 O $230,000 $200,000 QUESTIONS Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, not credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016. Question What is bad debt expense for 2016? $40,000 $42.000 $50.500 O $52,500 2 poi Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2016, net credit sales totaled $4,200,000, and the estimated bad debt percentage is 1.25%. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2016 and $42,000, after adjusting entries, at the end of 2016. Question What is the amount of accounts receivable written off during 2016? $40,000 $42,000 $50,500 $52,500 O QUESTION 5 2 points On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest bearing note with an 10% discount rate requiring the payment of $30,000 on March 31, 2017. The 10% rate is appropriate in this situation Question Journal entries for Esquire for 2016 would include: O a credit to Sales Revenue of $27,750 a debit to Discount on Notes Receivable of $2.250 a credit to Sales Revenue of $27.000 a debit to Discount on Notes Receivable of $3,000 QUESTION 6 LJUJULI E 23662261&stepanu On June 30, 2016, the Esquire Company sold some merchandise to a customer for $30,000 and agreed to accept as payment a noninterest bearing note with an 10% discount rate requiring the payment of $30,000 on March 31, 2017. The 10% rate is appropriate in this situation Question What is the effective rate of interest for this note? 8.1% 10.0% 10.4% 10.8% QUESTION 7 On January 1, 2016, Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $525,000 by Elmira on December 31, 2018. The effective interest rate is 6% Question Journal entries for Wright for 2016 would include: a debit to Discount on Notes Receivable of $84,200 a credit to Sales Revenue of $525.000 O a credit to Discount on Notes Receivable of $84.200 a credit to Notes Receivable of $525.000 QUESTION 8 2 points On January 1, 2016. Wright Transport sold four school buses to the Elmira School District. In exchange for the buses, Wright received a note requiring payment of $525,000 by Elmira on December 31, 2018. The effective interest rate is 6% Question Journal entries for Wright for 2016 would include: a a debit to Discount on Notes Receivable of $26,448 bit to interest Receivable of $26,448 a debit to interest Revenue of $26,448 none of the above QUESTION 9 2 points Samuelson and Messenger (S&M) began 2018 with 100 units of its one product. These units were purchased near the end of 2015 for $25 each. During the month of January, 100 units were purchased on January 8 for $25 each and another 150 units were purchased on January 19 for $30 each. Sales of 125 units and 100 units were made on January 10 and January 25, respectively, S&M uses a periodic inventory system Question Ending Inventory using the FIFO approach would be $5,750 6.375 $9,125 $3,750 ANAR se laser 2 points Saved On January 1, 2018, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest-bearing note requiring $20,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 5% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31 Question The value of the tractor purchased would be: $24,000 O $21.277 516,000 $20,732 QUESTION 20 2 points w Sawad On January 1, 2018. Byner Company purchased a used tractor Byner paid $4,000 down and signed a noninterest-bearing note requiring $20,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 5% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31 Question Interest expense for 2019 would be: $1,000 $1,117 $864 O $007 Tracy Company, a manufacturer of air conditioners, sold 100 units to Thomas Company on November 17, 2019. The units have a list price of $400 each, but Thomas was given a 20% trade discount. The terms of the sale were 2/10, 1/30. Thomas uses a periodic inventory system. Question The journal entries to record a full payment by Thomas on December 10, 2019, using the net method of accounting for purchase discounts would include: a debit to Interest Expense of 5640 a debit to Interest Expense of $800 Ca debit to Accounts Payable of $32,000 a debit to Accounts Payable of $31,200 2 points sa QUESTION 13 Tatum Company has four products in its inventory. Information about the December 31, 2019, Inventory is as follows: Product Total Cost Total Net Realizable Value 101 $100,000 $100,000 102 110,000 10360,000 50,000 45,000 40.000 104 Question "Net Realizable Value is defined as: 2 points Saved On January 1, 2018, Byner Company purchased a used tractor. Byner paid $4,000 down and signed a noninterest-bearing note requiring $20,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 5% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31 Question The value of the tractor purchased would be: $24,000 O $21.277 516,000 $20,732 QUESTION 20 2 points w Sawad On January 1, 2018. Byner Company purchased a used tractor Byner paid $4,000 down and signed a noninterest-bearing note requiring $20,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 5% properly reflects the time value of money for this type of loan agreement. The company's fiscal year-end is December 31 Question Interest expense for 2019 would be: $1,000 $1,117 $864 O $007

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