Hahn Company uses the percentage of sales method for
recording bad debts expense. For the year, cash sales are $300,000 and credit
sales are $1,200,000. Management estimates that 1% is the sales percentage to
use. What adjusting entry will Hahn Company make to record the bad debts
Using the percentage of receivables method for
recording bad debts expense, estimated uncollectible accounts are $15,000. If
the balance of the Allowance for Doubtful Accounts is $3,000 credit before
adjustment, what is the amount of bad debts expense for that period?
Intangible assets are the rights and privileges that
result from ownership of long-lived assets that
The book value of an asset is equal to the
Gains on an exchange of plant assets that has
commercial substance are
Ordinary repairs are expenditures to maintain the
operating efficiency of a plant asset and are referred to as
Costs incurred to increase the operating efficiency or
useful life of a plant asset are referred to as
When an interest-bearing note matures, the balance in
the Notes Payable account is
The interest charged on a $200,000 note payable, at a
rate of 6%, on a 2-month note would be
If a corporation issued $3,000,000 in bonds which pay
10% annual interest, what is the annual net cash cost of this borrowing if the
income tax rate is 30%?
Hilton Company issued a four-year interest-bearing note
payable for $300,000 on January 1, 2011. Each January the company is required
to pay $75,000 on the note. How will this note be reported on the December 31,
2012 balance sheet?
A corporation issued $600,000, 10%, 5-year bonds on
January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%.
Interest is paid semiannually on January 1 and July 1. If the corporation uses
the effective-interest method of amortization of bond premium, the amount of
bond interest expense to be recognized on July 1, 2011, is
When the effective-interest method of bond discount
amortization is used
If a corporation has only one class of stock, it is
referred to as
Capital stock to which the charter has assigned a value
per share is called
ABC, Inc. has 1,000 shares of 5%, $100 par value,
cumulative preferred stock and 50,000 shares of $1 par value common stock
outstanding at December 31, 2011. What is the annual dividend on the preferred
Manner, Inc. has 5,000 shares of 5%, $100 par value,
noncumulative preferred stock and 20,000 shares of $1 par value common stock
outstanding at December 31, 2011. There were no dividends declared in 2010. The
board of directors declares and pays a $45,000 dividend in 2011. What is the
amount of dividends received by the common stockholders in 2011?
When the selling price of treasury stock is greater
than its cost, the company credits the difference to
The purchase of treasury stock
Marsh Company has other operating expenses of $240,000.
There has been an increase in prepaid expenses of $16,000 during the year, and
accrued liabilities are $24,000 lower than in the prior period. Using the
direct method of reporting cash flows from operating activities, what were
Marsh’s cash payments for operating expenses?
Where would the event purchased land for cash appear,
if at all, on the indirect statement of cash flows?
In performing a vertical analysis, the base for cost of
goods sold is
Blanco, Inc. has the following income statement (in
the Year Ended December 31, 2011
Sales ………………………… $200
of Goods Sold ………………………… 120
Profit ………………………… 80
Expenses ………………………… 44
Income ………………………… $ 36
vertical analysis, what percentage is assigned to Net Income?
Dawson Company issued 500 shares of no-par common stock
for $4,500. Which of the following journal entries would be made if the stock
has a stated value of $2 per share?
Andrews, Inc. paid $45,000 to buy back 9,000 shares of
its $1 par value common stock. This stock was sold later at a selling price of
$6 per share. The entry to record the sale includes a
Which of the following is a fundamental factor in
having an effective, ethical corporate culture?
Two individuals at a retail store work the same cash
register. You evaluate this situation as
The Sarbanes-Oxley Act imposed which new penalty for
The Sarbanes-Oxley Act requires that all publicly
traded companies maintain a system of internal controls. Internal controls can
be defined as a plan to