1.At the beginning of last year, BillingsCorporation purchased a piece of heavy equipment for $72,000. The equipment has a life of fiveyears or 100,000hours. The estimated residual value is $2,000. Bremond used the equipment for 18,000 hours last year and 23,000hours this year. Depreciation expense for year two using? double-declining-balance (DDB) and? units-of-production (UOP) methods would be as? follows:?(Carry all rates to two decimal? places, .XX)??DDB UOP(a)$17,280 $16,100(b)$16,800 $16,560(c)$16,800 $16,100(d)$17,280 $16,5602.Peters Company purchased a machine for $8,800 on January? 1, 2016. The machine has been depreciated using the? straight-line method over a 10?-year life with a $400residual value. Peters sold the machine on January? 1, 2018?, for $8,200. The book value as of December? 31, 2017 is $7,120. What gain or loss should Petersrecord on the? sale?(a)Loss, $( 240 )(b)Gain, $ 200(c)Loss, $1,080(d)Gain, $1,0803.A company purchased mineral assets costing $800,000?, with estimated residual value of $40,000?, and holding approximately 200,000 tons of ore. During the first? year, 44 comma 44,000 tons are extracted and sold. What is the amount of depletion for the first? year? ?(Round intermediary calculations to seven decimal places as? needed, X.XXXXXXX and your final answer to the nearest whole? dollar.)A.$152,100B.$167,200C.$176,000D.Cannot be determined from the data given4. Honeysuckle Company sells $500,000 of 99?%, 15?-year bonds for 67.0454 on April? 1, 2016. The market rate of interest on that day is 14.5?%. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be as? follows: ?(Intermediary and final answer calculations are rounded to the nearest whole? number.)A. Cash 500,000Bonds Payable 500,000B. Cash 335,227Bonds Payable 335,227C. Cash 335,227Discount on Bonds Payable 164,773 50,000Bond PayableD. Cash 50,0005. New Trend Company sells $350,000 of 44?%, 10?-year bonds for 60.904 on April? 1, 2016. The market rate of interest on that day is 10.5?%. Interest is paid each year on April 1. The issue price of the bond is $213,164. New TrendCompany uses the? straight-line amortization method. The amount of interest expense for each year will be ?(Intermediary calculations are rounded to the nearest whole? number.)A. $50,434.B. 27,684.C. $34,976.D. $14,000.E. none of these.6.McIntosh Corporation issued $100,000 of 12?%, 20?-year bonds payable on January? 1, 2016. The market interest rate when the bonds were issued was 13?%. Interest is paid semiannually on January 1 and July 1. The first interest payment is July? 1, 2016. McIntosh recorded interest expense of $6,040 using the? effective-interest amortization method.McIntosh?’s entry to record the interest expense on July? 1, 2016?, will include aA. debit to Bonds Payable.B. debit to Premium on Bonds Payable.C. credit to Discount on Bonds Payable.D. credit to Interest Expense.7. A corporation has 10,000 shares of 15?% preferred stock outstanding.? Also, there are 10,000 shares of common stock outstanding. Par value for each is? $100. If a $600,000dividend is? paid, how much goes to the preferred? stockholders?A. NoneB. $150,000C. $600,000D. $90,000E. $130,0008. A corporation has 50,000 shares of 12?% preferred stock outstanding.? Also, there are 50,000 shares of common stock outstanding. Par value for each is? $100. If a $900,000dividend is? paid, what is the amount of dividends per share on common? stock?A. $12.00B. $6.00C. $3.00D. $18.00E. None of these9. A company paid $30 per share to purchase 900 shares of its common stock as treasury stock. The stock was originally issued at $18 per share. Which of the following is the journal entry to record the purchase of the treasury? stock?A.Treasury Stock 16,200Retained Earning 10800Cash 27,000B.Treasury Stock 27,000Cash 27,000C. Common Stock 27,000 Cash 27,000D. Treasury Stock 16,200Paid – In Capital in Excess of Par 10,800Cash 27,00010. Spirit World?, ?Inc., issues 280,000 shares of? no-par common stock for $9 per share. The journal entry is which of the? following?A. Cash 2,520,000 Common Stock 560,000Paid-In Capital in Excess of Par 1,960,000B. Cash 2,520,000 Common Stock 2,520,000C. Cash 2,520,000 Common Stock 280,000Gain on the Sale of Stock 2,240,000D. Cash 280,000
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