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On January 1, Year 1, Phillips Company made a basket purchase including land, a building and equipment for $380,000. The appraised values of the assets are $20,000 for the land, $340,000 for the building and $40,000 for equipment. Phillips uses the double-declining-balance method for the equipment which is estimated to have a useful life of four years and a salvage value of $5,000. What is the depreciation expense for the equipment for Year 1?

Fred and Barney started a partnership. During Year 1, Fred invested $20,000 in the business and Barney invested $32,000. The partnership agreement called for each partner to receive an annual distribution equal to 15% of his capital contribution. Any further earnings were to be retained in the business and divided equally between the partners. The partnership reported net income of $38,000 during Year 1. How will the $38,000 of net income be split between Fred and Barney respectively? (Hint: Consider both the cash withdrawals and allocation of remaining income.) FredBarneyA$ 20,500$ 17,500B$ 20,000$ 18,000C$ 19,000$ 19,000D$ 18,100$ 19,900

At the beginning of Year 3 Omega Company had a $60,000 balance in its accounts receivable account and a $3,000 balance in allowance for doubtful accounts. During Year 3, Omega experienced the following events.(1) Omega earned $200,000 of revenue on account(2) Collected $210,000 cash from accounts receivable(3) Wrote-off $2,000 of accounts receivable as uncollectibleOmega estimates uncollectible accounts to be 4% of receivables. Based on this information, the December 31, Year 3 balance in the accounts receivable account is

On January 1, Year 1, Barnes Company issued a $108,500 installment note. The note had a 10-year term and an 8 percent interest rate. Barnes agreed to repay the principal and interest in 10 annual payments of $16,170 at the end of each year. Which of the following shows how the first payment on December 31, Year 1 will affect Barnes financial statements? (Note: all amounts shown in the model are rounded to the nearest whole dollar.) Balance SheetIncome StatementStatement of Cash Flows Assets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA.(16,170)=(7,490)+(8,680) −8,680=(8,680)(8,680) FA (7,490) OAB.(16,170)=(7,490)+(8,680) −8,680=(8,680)(8,680) OA (7,490) FAC.(16,170)=(8,680)+(7,490) −(7,490)=(7,490)(8,680) FA (7,490) OAD.(16,170)=(8,680)+(7,490) −(7,490)=(7,490)(8,680) OA (7,490) FA

Blain Company has $20,000 of accounts receivable that are current, $10,000 that are between 0 and 30 days past due, $6,000 that are between 30 and 60 days past due, and $1,600 that are more than 60 days past due. Blain estimates that 2% of the receivables that are current will be uncollectible, 5% of those between 0 and 30 days past due will be uncollectible, 10% of those between 30 and 60 days past due will be uncollectible, and 50% of those more than 60 days past due will be uncollectible. At the beginning of Year 1, Blain had a $2,000 positive balance in its allowance for doubtful accounts. During Year 1, Blain wrote-off $2,200 of uncollectible receivables. Assuming Blain uses the aging method to estimate uncollectible accounts expense, the amount of uncollectible expense will be

Sable Company paid $465,000 for a purchase that included land, a building, and equipment. An appraiser estimated the market value of the land to be $100,000, the building to be $350,000, and the equipment to be $50,000. Based on this information, the cost that would be allocated to each of the assets is: LandBuildingEquipmentA.$ 93,000$ 325,500$ 46,500B.$ 100,000$ 350,000$ 50,000C.$ 93,000$ 279,000$ 50,000D.$ 100,000$ 325,500$ 46,500

On November 1, Year 1, Dixon Company paid $20 per share to buy back 2,400 shares of its $8 par value common stock. The stock had originally sold for $15. On December 15, Year 1, Dixon sold 540 shares of the treasury stock at $38 per share. Which of the following shows how the sale of the treasury stock will affect Dixon’s financial statements on December 15, Year 1?

On January 2, Year 1, Torres Corporation issued 30,000 shares of $20 par-value common stock for $25 per share. Which of the following statements is true?

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1.How will the entry to record the declaration of the dividend on March 1 affect the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net incomeA. =(9,000)+(9,000) −9,000=(9,000) B. =9,000+(9,000) − = C.(4,500)= +(4,500) − = (4,500) FAD. =4,500+(4,500) − =

On January 1, Year 1 Residence Company issued bonds with a 68,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20-year term and a stated rate of interest of 7%. Based on this information, the carrying value of the bond liability on January 1, Year 1 is: