Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 6, Problem 2E
To determine
Identify the items which should be classified as long-term operational assets.
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Quèstion 20
All of the following are resources owned or controlled by a company, except:
A.
Unearned rent revenue
O B.
Accounts receivable
OC.
Cash
OD.
Trucks
Question 22 of 40
Which of these would be considered a noncurrent asset?
A. a company vehicle
C. unpaid credit accounts
D. unsold inventory
O B. cash reserves
30. MC.03.035
Bright Services pays wages of a part-time employee. The transaction would involve a
a. debit to Cash.
b. debit to Wages Expense.
c. credit to Prepaid Expenses.
d. credit to Wages Payable.
31. MC.03.036
Patrick Services paid the office rent for the current month. The transaction would involve a
a. credit to Prepaid Rent.
b. debit to Rent Expense.
c. debit to Cash.
d. credit to Rent Payable.
32. MC.03.037
Homer Services pays the monthly rent, $5,000. The transaction would involve a
a. debit to Rent Expense.
b. credit to Rent Payable.
c. debit to Cash.
d. debit to Prepaid Rent.
33. MC.03.038
P. Baker deposits $10,000 in a bank account, in the name of his business, to be used to purchase equipment. The journal entry to record the transaction would involve a:
a. credit to P. Baker, Capital.
b. credit to P. Baker, Drawing.
c. credit to Cash.
d. credit to Equipment.
Chapter 6 Solutions
Survey Of Accounting
Ch. 6 - 1. What is the difference between the functions of...Ch. 6 - Prob. 2QCh. 6 - Prob. 3QCh. 6 - 4. Define depreciation. What kind of asset...Ch. 6 - Prob. 5QCh. 6 - Prob. 6QCh. 6 - Prob. 7QCh. 6 - 8. Explain the historical cost concept as it...Ch. 6 - Prob. 9QCh. 6 - Prob. 10Q
Ch. 6 - Prob. 11QCh. 6 - 12. Explain straight-line, units-of-production,...Ch. 6 - Prob. 13QCh. 6 - Prob. 14QCh. 6 - Prob. 15QCh. 6 - Prob. 16QCh. 6 - 17. What is salvage value?Ch. 6 - Prob. 18QCh. 6 - Prob. 19QCh. 6 - Prob. 20QCh. 6 - Prob. 21QCh. 6 - 22. Why would a company choose to depreciate one...Ch. 6 - Prob. 23QCh. 6 - 27. How are capital expenditures made to improve...Ch. 6 - Prob. 25QCh. 6 - Prob. 26QCh. 6 - Prob. 27QCh. 6 - Prob. 28QCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - LO 8-1 Exercise 8-6 A Allocating costs for a...Ch. 6 - Effect of depreciation on the accounting equation...Ch. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Events related to the acquisition, use, and...Ch. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 18ECh. 6 - Prob. 19ECh. 6 - Prob. 20ECh. 6 - Prob. 21ECh. 6 - Accounting for acquisition of assets, including a...Ch. 6 - Calculating depreciation expense using three...Ch. 6 - Determining the effect of depreciation expense on...Ch. 6 - Prob. 25PCh. 6 - Prob. 26PCh. 6 - Prob. 27PCh. 6 - Prob. 28PCh. 6 - Revision of estimated salvage value Delta Machine...Ch. 6 - Purchase and use of tangible asset: Three...Ch. 6 - Recording continuing expenditures for plant assets...Ch. 6 - Prob. 32PCh. 6 - Prob. 33PCh. 6 - Prob. 34PCh. 6 - Prob. 35PCh. 6 - Performing ratio analysis using real-world data...Ch. 6 - Prob. 1ATCCh. 6 - ATC 6-3 Research Assignment Comparing Microsofts...Ch. 6 - Prob. 4ATCCh. 6 - ATC 6-5 Ethical Dilemma Whats an expense? Several...
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- 34. MC.03.039 The requires that assets be recorded at the actual cost. a. cost principle b. matching principle c. business entity principle d. fair value principle 35. MC.03.040 For a journal entry to be complete, it must contain a. the date. b. a credit entry. c. a debit entry. d. an explanation. e. All of these listed answers are correct. 36. MC.03.041 Which of the following is correct concerning recording journal entries? a. Dollar signs are always recorded in the journal. b. The credit part of the entry is recorded first. c. The credit account is always indented underneath the debit entry. d. The debit part of the entry is recorded last.arrow_forward17 _____________are asset accounts applicable to all amounts owing, unsettled transactions, or other monetary obligations owed to a company by its credit customers or debtors. a. Notes payables b. Liabilities c. Invoices d. Receivables Clear my choicearrow_forwardService department charges and activity bases For each of the following service departments, identify an activity base that could be used for charging the expense to the profit center: A. Legal B. Duplication services C. Electronic data processing D. Central purchasing E. Telecommunications F. Accounts receivablearrow_forward
- QUESTION 49 Match the statements below with the accounting assumption, characteristic, or principle to which the statement relates. Assumptions/characteristics/principles may be used once, more than once, or not at all. V Recorded when the performance obligation is satisfied. a. Revenue recognition principle V The reason for recording accruals and deferrals in adjusting entries. b. Matching principle Valuing assets at amounts originally paid for them. C. Historical cost principle d. Entity assumed to have a long life Going concern assumption Description of significant accounting policies and unusual events. e. Full disclosure principle f. Information has predictive and confirmatory value. Relevance characteristic 8. Consistency characteristicarrow_forwardIdentify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory O d. Loanarrow_forwardQUESTION 8 Classify the following items into assets, liabilities, or owner’s equity. a. Office equipment ______ b. Freehold premises _______ c. Capital _________ d. Mortgage on buildings____ e. Debtors _____ f. Short-term loan _________ g. Long-term loan ________ h. Drawings _________ i. Bank ____________ j. Bank overdraft ________ k. Creditors __________ l. Net profit _____arrow_forward
- Question 31 Revenue are considered to have been earned when: All possibility of return has expired. The selling company has substantially accomplished what it contracted to perform and collection from the customer is reasonably expected. The cash is collected. Goods have been shipped.arrow_forward43- Contribution received from shareholders will be recorded as a. Dr Receivables Cr Cash account b. Dr Cash account Cr receivables c. Dr Capital Cr Cash account d. Dr Cash account Cr Capitalarrow_forwardMark for Review Question 26 of 30 The ratio quantifies the degree of available liquid assets is Liquidity coverage ration Temporay assets to total assets O Temporary assets to volatile liabilities Veiatie liabilities to total assetsarrow_forward
- Allocating payments and receipts to fixed asset accounts The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk. a. Fee paid to attorney for title search 2,500 b. Cost of real estate acquired as a plant site: Land 285,000 Building (to be demolished) 55,000 c. Delinquent real estate taxes on property, assumed by purchaser 15,500 d. Cost of tearing down and removing building acquired In (b) 5,000 e. Proceeds from sale of salvage materials from old building 4,000 f. Special assessment paid to city for extension of water main to the property 29,000 g. Architects and engineers fees for plans and supervision 60,000 h. Premium on one-year insurance policy during construction 6,000 i. Cost of filling and grading land 12,000 j. Money borrowed to pay building contractor 900,000 k. Cost of repairing windstorm damage during construction 5,500 1. Cost of paving parking lot to be used by customers 32,000 m. Cost of trees and shrubbery planted 11,000 n. Cost of floodlights installed on parking lot 2,000 o. Cost of repairing vandalism damage during construction 2,500 p. Proceeds from insurance company for windstorm and vandalism damage 7,500 q. Payment to building contractor for new building 800,000 r. Interest incurred on building loan during construction 34,500 s. Refund of premium on insurance policy (h) canceled after 11 months 500 Instructions 1.Assign each payment and receipt to Land (unlimited life), Land Improvements (limited life), Building, or Other Accounts. Indicate receipts by an asterisk. Identify each item by letter and list the amounts in columnar form, as follows: Item Land Land improvements Building Other Accounts 2.Determine the amount debited to Land, Land Improvements, and Building. 3.The costs assigned to the land, which is used as a plant site, will not be depreciated, while the costs assigned to land improvements will be depreciated. Explain this seemingly contradictory application of the concept of depreciation. 4.What would be the effect on the current years income statement and balance sheet if the cost of filling and grading land of 12,000 [payment (i)] was incorrectly classified as Land Improvements rather than Land? Assume that Land Improvements are depreciated over a 20-year life using the double-declining-balance method.arrow_forwardService department charges and activity bases For each of the following service departments, identify an activity base that could be used for charging the expense to the profit center: A. Legal B. Duplication services C. Electronic data processing D. Central purchasing E. Telecommunications F. Accounts receivablearrow_forward
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