PAMANTASAN NG LUNGSOD NG MAYNILA FINANCIAL ACCOUNTING QUIZ 7 NAME: ____________________________ TRUE OR FALSE: 1. Assets under construction for a company’s own use do not qualify for interest cost capitalization. 2. Avoidable interest is the amount of interest cost that a company could theoretically avoid if it had not made expenditures for the asset. 3. When a company purchases land with the intention of developing it for a particular use‚ interest costs associated with those
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Chrome-It‚ Inc.‚ manufactures special chromed parts made to the order and specifications of the customer. It has two production departments‚ stamping and plating‚ and two service departments‚ power and maintenance. In any production department‚ the job in process is wholly completed before the next job is started. The company operates on a fiscal year‚ which ends September 30. Following is the post-closing trial balance as of September 30: [pic] .:. Additional information: 1. The balance of the
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decreased [ ] capital surplus must have decreased [ ] the market value of the firm ’s stock must have decreased 2) Last year‚ Eddie ’s‚ Inc. had an operating cash flow of $284‚500. The net fixed asset account declined by $8‚000 and the depreciation expense was $13‚000. Also during the year‚ net working capital increased from $16‚500 to $18‚000. What is the company ’s cash flow from assets? [ ] $262‚000 √ [ ] $278‚000 [ ] $281‚000 [ ] $288‚000 [ ] $301‚000 3) Which of
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+8000(1-30%) Equipment =131700 Consideration transferred = 137200 Goodwill =137200- 131700 =5500 2. BCVR entries at 30 June 2010 1) Machinery Depreciation expense-machine Dr 100 Carrying amount Dr 700 Retained earnings Dr 140 Transfer from BCVR Cr 700 ITE
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Life University Chapter 4 Chapter Sections 1. 2. 3. 4. 5. 6. 7. Cost of plant assets Lump sum purchase Capital expenditure and Revenue expenditure Depreciation method Partial year Depreciation Revise estimate of salvage value and useful life Disposal of plant assets Long Term Assets • Plant Assets • Natural Resource • Intangible Assets Plant Assets • • • • Possess physical substance. Used in operation and not for resale. Long-term in nature Examples: Land Land Improvement
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25‚000 Bonds Payable 50‚000 Prepaid Expenses 12‚000 Fixed Assets Stockholders Equity Plant & Equip(gross) $250‚000 Common Stock $75‚000 Less Accum Deprec. 50‚000 Paid in capital 25‚000 Net Plant & Equip $200‚000 Retained Earnings 80‚000 Total Assets $262‚000 $262‚000 Sales for 2013 were $220‚000 and the cost of goods sold was 60% of sales. Selling and administration expense was $22‚000. Depreciation expense was 8% of plant and equipment (gross) at the
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Bookkeeper ’s Hiring Test Basic Test Payroll Option Depreciation Option Inventory-Perpetual Option Test Name: AIPB Hiring Test Test Form: 5 Test Points: 25.00 _________________________________________________ Name: ________________________________ Date: _________________ [1]BASIC BANK01 - BAT 003 Which of the following statements is true? A. An asset account is increased by a credit B. An expense account is increase by a credit C. A revenue account is decreased by a credit D. An equity
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construct the corresponding adjusting entries on October 31. (a) One month of the company’s rent expired during October. (b) The company’s equipment originally cost $30‚000 and was expected to benefit the company for 5 years. Straight line depreciation method is used. Assume a $5‚000 salvage value. (c) The company’s employees earned $400 during the last week of October that will be paid on
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are: A capital expenditure is an amount spent to acquire or improve a long-term asset such as equipment or buildings. Usually the cost is recorded in an account classified as Property‚ Plant and Equipment. The cost will then be charged to depreciation expense over the useful life of the asset. Capital expenditure is also considered an expenditure on a non-current asset. This is done either in acquiring them or increasing their earning capacity (Victor‚ 2010) . Revenue expenditure is that which is
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property‚ plant‚ and equipment and accumulated depreciation accounts. Again the controller examined the December 31‚ 1997‚ balance sheet [see Exhibit 1 of Stern Corporation (A)]. Also reviewed were the following company transactions that were found to be applicable to these accounts: 1. On January 2‚ 1998‚ one of the factory machines was sold for its book value‚ $3‚866. This machine was recorded on the books at $31‚233 with accumulated depreciation of $27‚367. 2. Tools were carried on the books
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