Question 1 A company was recently formed with $ 50,000 cash contributed to the company by stockholders. The company
rubyCpaMbaQuestion 1
A company was recently formed with $ 50,000 cash contributed to the company by stockholders. The company then borrowed $ 20,000 from a bank and bought $ 10,000 of supplies on account. The company also purchased $ 50,000 of equipment by paying $ 20,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?
$ 110,000
$ 90,000
$ 100,000
$120,000
Question 2
A company purchases $23,000 of supplies in the current month and promises to pay for them next month. How would the company record a liability for the supplies?
This liability is not a recognized liability until the payment is due.
$23,000 would be posted as a credit to accounts payable.
$23,000 would be posted as a credit to supplies expense.
$23,000 would be posted as a debit to accounts payable.
Question 3
A company was recently formed with $ 100,000 cash contributed to the company by stockholders. The company then borrowed $ 50,000 from a bank and bought a $ 20,000 vehicle for cash. They also purchased $10,000 of equipment by paying $ 2,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?
$ 158,000
$ 160,000
$ 162,000
$ 100,000
Question 4
A company has net sales of $500,000 and cost of goods sold of $400,000. The company’s gross profit percentage is:
80%
20%
50%
10%
Question 7
Post Company began the current month with $10,000 in inventory, then purchased inventory at a cost of $35,000. The inventory at the end of the month was $20,000. The cost of goods sold would be:
$30,000
$35,000
$25,000
$15,000
Question 8
A company lends its CEO $150,000 for 3 years at a 6% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:
$9,000
$4,500
$27,000
$13,500
Question 9
Post Company lends Blue Company $40,000 on April 1, accepting a 4 month, 4.5% interest note. Post Company prepares financial statements on April 30. What adjusting entry should they make?
Debit note receivable $40,000; Credit Cash $40,000
Debit interest receivable $150; Credit interest revenue $150
Debit cash $150; Credit interest revenue $150
Debit interest receivable $600; Credit interest revenue $600
Question 11
Post Company uses straight- line depreciation for all of its depreciable assets. Post sold a piece of machinery on December 31, 2009, that it purchased on January 1, 2009 for $ 2,000. The asset had a five year life and zero residual value. Accumulated depreciation was $400. If the sales price of the used machine was $ 1,200, the resulting gain or loss on disposal was which of the following amounts?
Loss of $ 400.
Loss of $ 800.
Gain of $ 400.
Gain of $ 1,200
Question 12
On July 1, 200X you enter into a note payable of $200,000 with a 5% annual interest rate. Your interest expense for 200X will be:
$2,500
$10,000
$2,000
$5,000
Question 13
Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. How much interest will be paid over the life of the bond?
$4,000
$6,000
$12,000
$72,000
- 10 years ago
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