Question 1 (12 points) Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building...

Question 1 (12 points)
 
Alpha Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:
    PP&E Element
    Amount
    Land
    $10,000
    Building
    20,000
    Equipment
    30,000
Alpha paid $45,000 cash for the lump sum purchase. What value should be allocated to the following? (Enter only whole dollar values.)
1. Land
2. Building
3. Equipment
 
 
Question 1 options:
    
    
    
Question 2 (12 points)
 
On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eight years and the total units of output to be 200,000.  The estimated residual value is $8,000. Using the straight-line method, how much is: (Enter only whole dollar values.)
1. the 2017 depreciation expense
2. the accumulated depreciation after the fiscal year 2017 adjusting entry
3. the book value of the machine after the fiscal year 2017 adjusting entry
 
Question 2 options:
    
    
    
Question 3 (12 points)
 
Bravo Company purchased equipment on October 1, 2016. Bravo paid $60,000 for equipment and paid an additional $500 for shipping and $200 to place the equipment in service. The equipment is expected to have a $6,000 residual value and a 8-year life. Bravo has a December 31 fiscal year end. Using the double-declining balance method, how much is: (Enter only whole dollar values.)
1. the 2018 depreciation expense
2. the accumulated depreciation after the fiscal year 2018 adjusting entry
3. the book value of the machine after the fiscal year 2018 adjusting entry
 
Question 3 options:
    
    
    
Question 4 (10 points)
 
On July 1, 2016, Alpha Company negotiated the purchase of a new piece of equipment with the seller Zulu Company. The equipment was list for $200,000. Smooth talking Alpha was able to negotiate the purchase price and acquired the equipment at $175,000.  Alpha Company completed the purchase transaction on July 1. Additionally, Alpha was entitled to a 1% discount if it paid for the equipment within 10 days.  After completing the purchase, Bravo Company, third party, offered Alpha, $185,000 for this equipment.  What amount should Alpha Company record the equipment purchase at if payment is made by July 11?
Question 4 options:
    
Question 5 (12 points)
 
On July 1, 2016, Alpha Company purchased for $76,000, equipment having a service life of eight years and an estimated residual value of $4,000. Alpha has recorded depreciation of the equipment using the double-declining balance method.  On December 31, 2018, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000.  The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2018.  Round numbers to whole dollars.
General Journal:
    Date
    Accounts
    Debit
    Credit
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
 
Question 6 (12 points)
 
On July 1, 2016, Alpha Company exchanged an old computer (Equipment) with a historical cost of $1,000 that had accumulated depreciation of $600 after all June adjusting entries had been processed. The exchange was for a new computer having a fair value of $500. The transaction has commercial substance. Using this information, how much should be recorded on July 1 for the following accounts:
1. Accumulated Depreciation, Equipment
2. Gain or (Loss) on Sale (Enter any loss amount with $ sign inside of
ackets)
3. Equipment - New
 
Question 6 options:
    
    
    
Question 7 (12 points)
 
Alpha Mining Company recognizes $2 of depletion for each ton of ore mined. During 2016, 850,000 tons of ore were mined and 725,000 tons were sold. Using this information, how much should be recorded for FY 2016 for the following accounts:
1. Accumulated Depletion
2. Inventory
3. Cost of Goods Sold
 
Question 7 options:
    
    
    
Question 8 (9 points)
 
On January 2, 2016, Alpha Company purchased a patent for $38,500 plus $2,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Alpha Company expects to use the patent for six years. Use this information to prepare the General Journal entry (without explanation) for December 31, 2016 end of the year adjusting entry. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
     
     
     
     
     
     
     
     
 
 
Question 9 (9 points)
 
Alpha Company was recently sold for $1,250,000. Alpha assets & liabilities consisted of the following:
    Item
    Amount
    Cash
    $75,000
    Inventory
    $275,000
    Property, Plant & Equipment (net)
    $750,000
    Accounts Payable
    $350,000
Using this information, how much should be recorded as Goodwill for this transaction?
 
Question 9 options:
    
Question 10 (8 points)
 
Given below are account balances for Charlie Company:
Gross sales, $108,000
Sales returns and allowances, $8,000
Selling expenses, $12,000
Cost of goods sold, $56,000
Interest expense, $3,000
How much is the gross profit margin? (enter your percentage as a decimal rounded to two decimal places.  Example - enter 46% as .46)
Your Answer:
    
    Answe
Question 11 (8 points)
 
Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000.  If payment occurs on January 21, the journal entry would include a credit to:
Question 2 options:
    
    Accounts Receivable for $2,000
    
    Cash for $1,960
    
    Accounts Receivable for $1,960
    
    Sales Discounts for $40
Question 12 (8 points)
 
Merchandise was returned to a supplier.  The goods were previously purchased on account.  The goods had not been paid for and there were no discounts.  Assuming a periodic system, what journal entry is needed by the purchaser to record the return?
Question 3 options:
    
    Debit Accounts Payable, and Credit Purchase Discounts.
    
    Debit Accounts Payable, and Credit Purchase Returns and Allowances.
    
    Debit Accounts Payable, and Credit Inventory.
    
    Debit Accounts Payable, and Credit Purchases.
Question 13 (9 points)
 
Alpha Company provided the following data concerning its income statement: sales, $950,000; purchases, $401,000; beginning inventory, $215,000; ending inventory, $302,000; operating expenses, $117,000; freight-in, $5,000; sales discounts, $19,000; purchases discounts, $15,000; sales returns & allowances, $83,000; and purchases returns & allowances, $38,000.  The data are complete and provide the basis for preparation of an income statement.  How much is net income?
Your Answer:
    
    Answe
Question 14 (8 points)
 
Alpha Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used.
Alpha Company sold on account merchandise costing $3,000 to Bravo Company on May 2, 2016. Selling price was $4,500. Freight charges related to this transaction of $200 were paid by Alpha Company.
Bravo Company returned, to Alpha Company, merchandise with an original cost to Alpha of $300 on May 3, 2016. Merchandise was sold to Bravo for $450
Use this information to prepare Alpha Company's  General Journal entries (without explanation) for May 2 & May 3 entries. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
    May 2
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    May 3
     
     
     
     
     
     
     
 
 
 
Question 15 (8 points)
 
Alpha Company replenished a $500 petty cash fund.  The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180.  The journal entry to reflect replenishment would include a:
Question 6 options:
    
    debit to Cash Short for $2
    
    credit to Cash or $180
    
    credit to Cash for $318
    
    credit to Petty Cash for $2
Question 16 (9 points)
 
Annapolis Company's bank statement indicated an ending cash balance of $9,640. Alpha's accountant discovered that outstanding checks amounted to $715 and deposits in transit were $960. Additionally, the bank statement showed service charges of $25. What is the co
ect adjusted ending cash balance
Your Answer:
    
    Answe
Question 17 (8 points)
 
Baltimore Company uses aging to estimate uncollectibles.  At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
    Dollar Value
    Age of Account
    Estimated Collectible
    $110,000
    < 30 days old
    98%
    70,000
    30 to 60 days old
    92%
    35,000
    61 to 120 days old
    78%
    10,000
    > 120 days old
    13%
The cu
ent unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts?  Round to nearest whole dollar.
Your Answer:
    
    Answe
Question 18 (9 points)
 
Dorchester Company had the following balances at the end of 2018 and 2019 respectively:
Net Credit Sales - $830,000 for 2018 and $912,000 for 2019.
Accounts Receivable - $80,000 for 2018 and $99,000 for 2019.
Allowance for Doubtful Accounts - $6,000 for 2018 and 7,500 for 2019
Calculate the accounts receivable turnover ratio to one decimal place.
Your Answer:
    
    Answe
Question 19 (9 points)
 
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:
    Date
    Activity
    Quantity
    Unit Price
    5/1
    Beginning Inventory
    130
    $10
    5/5
    Purchase
    240
    $12
    5/15
    Purchase
    270
    $14
    5/25
    Purchase
    320
    $16
Sales were 480 units at $20.  Using the FIFO method, determine the dollar value of Cost of Goods Sold for the month of May.
Your Answer:
    
    Answe
Question 20 (8 points)
 
Easton Company uses the periodic inventory system and had the following inventory & sales activity for the month of May 2019:
    Date
    Activity
    Quantity
    Unit Price
    5/1
    Beginning Inventory
    100
    $10
    5/5
    Purchase
    225
    $12
    5/15
    Purchase
    210
    $14
    5/25
    Purchase
    200
    $16
Sales were 570 units at $20.  Using the LIFO method, determine the dollar value of Cost of Goods Sold for the month of May.
    
    Answe
Question 21 (8 points)
 
Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 9.4.  What was the company's Days Outstanding in Inventory.  Assume a 365 day year.  Round to one decimal place.
Your Answer:
    
    Answe
Question 22:
Clarifications on SEC 10k Project
For question 22, please use NIKE as company.
The PowerPoint and the Paper should compliment each other. The paper should be able to be given to a Board of Directors so they could use it to follow along with the PowerPoint