37) Journalize the following transactions for Pets R Us:   Mar. 5Sold a truck for $10,000 that cost $15,000 and had an accumulated depreciation of $12,000. Mar. 10A machine costing $13,000 with accumulated depreciation of $10,500 was destroyed in a fire. No claim was filed.   May 15Traded in a machine costing $25,000, with $19,000 of accumulated depreciation, for a new machine costing $32,000 with a trade-in allowance of$ 9,000. 38) Prepare journal entries for the following for Bartz, Inc.   May 11Replaced the engine in a Van #1, paying cash of $5,400. May 18Paid cash for a tune-up […]

  11) Warner Enterprises was unable to collect a $1,500 note receivable plus $75 interest on the maturity date, but hoped to collect the amount in the future. Warner should record this as: A) debit Bad Debts Expense $1,500; credit Notes Receivable $1,500. B) debit Allowance for Doubtful Accounts $1,575; credit Notes Receivable $1,575. C) debit Accounts Receivable $1,500; credit Interest Income $75; credit Cash $1,575. D) debit Accounts Receivable $1,575; credit Interest Income $75; credit Notes Receivable $1,500. 12) If your customer does not pay the note at maturity, the journal entry on your books would be: A) debit […]

  11) The write-off of an intangible asset is called: A) depreciation. B) amortization. C) impairment. D) deterioration. 12) A coal mine was acquired for $4,000,000. No salvage value was expected and the number of tons of coal is estimated to be 2,000,000 tons. During for first year, 200,000 tons of coal was mined and sold. The depletion expense is: A) $2,000,000. B) $200,000. C) $4,000,000. D) $400,000. 13) To record the depletion of natural resources, the most common method is to use the double declining-balance method. 14) Patents, copyrights, and franchises are intangible assets with the same number of […]

  12.2   Learning Objective 2 1) How is Income Summary closed if the company had a net loss? A) Credit Income Summary; debit Capital B) Debit Income Summary; credit Capital C) Debit Capital; credit Revenue D) Debit Withdrawals; credit Capital 2) How is Income Summary closed if the company had a net income? A) Debit Capital; credit Income Summary B) Debit Income Summary; credit Capital C) Debit Capital; credit Withdrawals D) Debit Withdrawals; credit Capital 3) Adjusting entries from the worksheet: A) are journalized and posted to the ledger. B) are posted directly to the ledger. C) are closed to […]

  11.2   Learning Objective 11-2 1) When completing a worksheet: A) the ending inventory amount appears in the income statement debit column. B) the beginning inventory amount appears in the adjustment credit column. C) the ending inventory amount appears in the unadjusted trial balance debit column of the worksheet. D) the beginning inventory amount appears in the balance sheet debit column of the worksheet. 2) The balance sheet columns on the worksheet prepared for Cleveland Foods had subtotals as follows: debit column, $13,000, and credit column, $10,400. This information indicates that: A) the company incurred a net income of $2,600. […]