Blog

Based on the following information, what is the amount of McKee Company’s income before income taxes, assuming the accrual method of accounting?  Credit Sales totaled $320,000.   Cash Sales totaled $414,000.   Cash collected from customers for services not performed yet $93,000.   Dividend Income $4,500.   Cost of Goods Sold $336,000.   Salaries Expense $50,000.   Rent Expense $32,000.   Other Operating Expenses $80,000.   Interest Expense $21,000.   Prepaid Rent $3,000.   Gain on the sale of equipment $20,000.  

McGinn Company purchased 10% of RJ Company’s common stock during 2019 for $100,000. The 10% investment in RJ had a $90,000 fair value at the end of 2019 and a $105,000 fair value at the end of 2020. Which of the following statements is correct?  

Chaucer Corporation has provided the following information for the year just ended: Cash sales totaled $150,000, Credit sales totaled $325,000, Cash collections from customers for services that have not been provided yet totaled $22,000. There was a $5,000 gain from the sale of property and equipment. Interest expense totaled $8,500. Dividends paid totaled $125,000. How much did net income increase due to these items?

KLM Co. accrued taxes owed at year end.  Which of the following statements is correct when KLM pays the taxes?

Which of the following is true regarding asset impairments?

Which of the following steps in the policy cycle is characterized by media campaigns, public education, and lobbying?

Conservationists regard which of the following as their most powerful tool in protecting environmental quality?

On July 1, ABC Company purchased a building for $1,243,000 and uses the 200% declining-balance depreciation method. The estimated residual value of the building is $155,000 and it has an expected useful life of 10 years. What is the building’s book value at the end of year 2 if ABC uses a December 31, year-end?

ABC Co. borrowed $25,000 on August 31, 2020 and signed a one-year, 5%, interest bearing note payable with interest to be paid at maturity. What amount of accrued interest payable should be recorded on the December 31, 2020 year-end Balance Sheet? 

Which of the following events did NOT have an influence on the rise of the modern environmental movement?