POST ACC111 UNIT 7 CH 9 ,10 AND 11 QUIZES

UNIT 7 CH 9

• Question
1
0 out of 0 points

When recording depreciation,
which of the following statements is true?

Total
assets increase and stockholders equity increases.
Total
assets decrease and total liabilities increase.
Total
assets decrease and stockholders equity increases.

Total assets decrease and stockholders equity decreases.

• Question
2
0 out of 0 points

ACME, Inc. uses straight- line
depreciation for all of its depreciable assets. ACME sold a piece of machinery
on December 31, 2010, that it purchased on January 1, 2009, for $ 10,000. The
asset had a five- year life and zero residual value. Accumulated depreciation was $4,000. If the sales price of the used machine was $
7,500, the resulting gain or loss on disposal was which of the following
amounts?

Loss of
$ 6,000.
Loss of
$ 1,500.
Gain of
$ 6,000.

Gain of $ 1,500.

• Question
3
0 out of 0 points

On January 1, 200X Jones Company
purchased a machine for $20,000. The
machine had a salvage value of $2,000 and a useful life of 5 years. Using straight line depreciation, the accounting
entry for recording depreciation expense for 200X would be:

Debit depreciation expense – $3,600, credit accumulated
depreciation – $3,600.
Debit
depreciation expense – $4,000, credit accumulated depreciation – $4,000.
Debit
depreciation expense – $3,600, credit machine – $3,600.
Debit
depreciation expense – $4,000, credit machine – $4,000.

• Question
4
0 out of 0 points

On January 1, 200X Jones Company
purchased a machine for $10,000. The
machine has no salvage value and a useful life of 5 years. Jones uses straight line depreciation. After 4 years the book value of the machine
would be?

$10,000

$2,000
$8,000
$5,000.

• Question
5
0 out of 0 points

You purchase a patent for
$100,000. The remaining useful life is
10 years. The entry for amortization
expense for the first year would be:
Debit
patent $100,000 and credit cash $100,000.
Debit
patent expense $10,000 and credit cash $10,000.
Debit
patent $10,000 and credit cash $10,000.

Debit amortization expense $10,000 and credit patent
$10,000.

• Question
1
2 out of 2 points

Which of the following is not
capitalized when a piece of production equipment is acquired for a factory?

Sales
taxes.
Installation
costs.
Transportation
costs.

Ordinary repairs.

• Question
2
2 out of 2 points

On January 1, 200X Post Company
purchased a machine for $80,000. The
machine had a salvage value of $8,000 and a useful life of 10 years. Using straight line depreciation, the accounting
entry for recording depreciation expense for the second year of operation would
be:

Debit depreciation expense – $7,200, credit accumulated
depreciation – $7,200.
Debit
depreciation expense – $8,000, credit accumulated depreciation – $8,000.
Debit
depreciation expense – $8,000, credit machine – $8,000.
Debit
depreciation expense – $4,000, credit machine – $4,000.

• Question
3
2 out of 2 points

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
4
2 out of 2 points

Post Company purchased a patent
on January 1, 200X for $50,000. The patent has a useful life of 10 years. The
accounting entry to record the patent amortization expense for the first year
would be:

Debit
patent amortization expense $50,000; credit patent $50,000.

Debit patent amortization expense $5,000; credit patent
$5,000.
Debit
patent $50,000; credit accounts payable $50,000.
Debit
patent $5,000; credit accounts payable $5,000.

UNIT 7 CH 10

• Question
1
0 out of 0 points

Assume that Warnaco Group Inc.
the makers of Calvin Klein underwear, borrowed $ 100,000 from the bank to be
repaid over the next five years, with principal payments of $20,000 each year.
Warnaco should report this item as:

$100,000
should be reported as a long- term liability.

$80,000 should be reported as a long- term liability and
$20,000 as a current liability.
$100,000
should be reported as a long- term asset.
$80,000
should be reported as a long- term asset and $20,000 as a current asset.

• Question
2
0 out of 0 points

On April 1, 200X you enter into a
note payable of $100,000 with a 9% annual interest rate. Your interest expense for 200X will be:

$9,000
$750

$6,750
$6,000

• Question
3
0 out of 0 points

Jones Company issues a 10 year,
8%, $400,000 bond at par on July 31. The journal entry would be:

A debit to cash of $400,000 and a credit to bonds payable of
$400,000.
A debit
to bonds payable of $400,000 and a credit to cash of $400,000.
A debit
to cash of $400,000 and a credit to bonds receivable of $400,000.
A debit
to bonds receivable of $400,000 and a credit to cash of $400,000.

• Question
4
0 out of 0 points

Jones Company issues a 10 year,
8%, $400,000 bond at par on July 31. How
much interest will be paid over the life of the bond?

$40,000
$4,000

$320,000
$32,000

• Question
1
2 out of 2 points

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:

$10,000.
$2,500
$2,000

$5,000

• Question
2
0 out of 2 points

Post Company issues a 6 year, 6%,
$200,000 bond at par on July 31. The journal entry would be:

A debit to cash of $200,000 and a credit to bonds payable of
$200,000.
A debit
to bonds payable of $200,000 and a credit to cash of $200,000.
A debit
to cash of $200,000 and a credit to bonds receivable of $200,000.
A debit
to bonds receivable of $200,000 and a credit to cash of $200,000.

• Question
3
2 out of 2 points

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

• Question
4
2 out of 2 points

A company has current assets of
$500,000, net income of $10,000, current liabilities of 250,000 and equity of
$250,000. What is the current ratio?

0.5
7.5
0.3

2.0

• Question
5
2 out of 2 points

If a company has gross salaries
of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes,
the journal entry to record the employee’s pay should include:

Debit
to salary expense for $9,400
Debit
to salary payable for $9,400

Credit to salary payable for $9,400
Credit
to cash for $12,000

• Question
1
2 out of 2 points

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:

$10,000.
$2,500
$2,000

$5,000

• Question
2
0 out of 2 points

Post Company issues a 6 year, 6%,
$200,000 bond at par on July 31. The journal entry would be:

A debit to cash of $200,000 and a credit to bonds payable of
$200,000.
A debit
to bonds payable of $200,000 and a credit to cash of $200,000.
A debit
to cash of $200,000 and a credit to bonds receivable of $200,000.
A debit
to bonds receivable of $200,000 and a credit to cash of $200,000.

• Question
3
2 out of 2 points

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
• Question
4
2 out of 2 points

A company has current assets of
$500,000, net income of $10,000, current liabilities of 250,000 and equity of
$250,000. What is the current ratio?

0.5
7.5
0.3

2.0

• Question
5
2 out of 2 points

If a company has gross salaries
of $12,000 and it withholds $1,800 for income taxes and $800 for FICA taxes,
the journal entry to record the employee’s pay should include:

Debit
to salary expense for $9,400
Debit
to salary payable for $9,400

Credit to salary payable for $9,400
Credit
to cash for $12,000

UNIT 7
CH 11

• Question
1
0 out of 0 points

Post Company issues 100,000
shares of $10 par value stock for $18 a share. The accounting entry for this
transaction would be:

Debit
cash -$1,000,000 and credit Capital Stock – $1,000,000.
Debit
cash -$1,800,000 and credit Capital Stock – $1,800,000.

Debit cash -$1,800,000 and credit Capital Stock –
$1,000,000, credit Additional Paid in Capital $800,000.
Debit
cash -$1,000,000, debit Additional Paid in Capital Stock – $800,000 and credit
Capital – $1,800,000,

800,000

• Question
2
0 out of 0 points

Dividends become a liability of
the corporation:

On the date the board of directors declares the dividend.
On the
date of record.
On the
date payment is made.
When
preferred dividends have not been paid.

• Question
3
0 out of 0 points

On January 1, 200X XYZ Company
declared a cash dividend of .50 per share. On January 1 they will make the
following journal entry:

Debit
cash and credit dividends payable.

Debit dividends declared and credit dividends payable.
Credit
cash and debit dividends declared.
Debit
expense and credit cash.

• Question
1
2 out of 2 points

Post Company issues 10,000 shares
of $5 par value common stock for $20 a share. The accounting entry for this
transaction would be:

Debit
cash -$200,000 and credit Common Stock – $200,000.
Debit
cash -$50,000 and credit Common Stock – $50,000.
Debit
cash -$200,000, debit Additional Paid in Capital – $50,000 and credit Common
Stock – $200,000,

Debit cash -$200,000 and credit Common Stock – $50,000,
credit Additional Paid in Capital – $150,000.

• Question
2
2 out of 2 points

Dividends become a liability of
the corporation:

On the date the board of directors declares the dividend.
On the
date of record.
On the
date payment is made.
When
preferred dividends have not been paid.

• Question
3
2 out of 2 points

XYZ Company has 100,000 shares of
stock outstanding. On January 1, 200X XYZ Company declared a cash dividend of
.50 per share to be paid on January 31. On January 1 XYZ Company will make the
following journal entry:

Debit
cash $50,000 and credit dividends payable $50,000.

Debit dividends declared $50,000 and credit dividends
payable $50,000.
Credit
cash $50,000and debit dividends declared $50,000.
No
entry is made until January 31.

• Question
4
2 out of 2 points

Which of the following will
result when a dividend is paid?

A
credit to dividends payable.

A debit to dividends payable.
A debit
to capital.
A credit
to capital.

• Question
5
2 out of 2 points

In its most basic form, the
Earnings per Share (EPS) ratio is calculated as:

Dividends
paid on common stock divided by the average number of shares outstanding of
common stock.

Net income divided by the average number of shares
outstanding of common stock.
Net
income divided by average stockholder’s equity.
Sales
divided by average stockholder’s equity.