1. Which of the following capital assets would not be depreciated? a) The city's streetlights. b) Purchased computer software. c) The partially completed city hall. d) The artwork owned and displayed in the city parks. 2. Goods for which a purchase order had been placed at an estimated co. were received at an actual cost of $985. The journal entry in the Gener record the receipt of the goods will include a: a) Debit to Reserve for Encumbrances for $1,000. b) Credit to Vouchers Payable for $985. c) Debit to Expenditures for $985. d) All of the above are correct.

1. Which of the following capital assets would not be depreciated? a) The city's streetlights. b) Purchased computer software. c) The partially completed city hall. d) The artwork owned and displayed in the city parks. 2. Goods for which a purchase order had been placed at an estimated co. were received at an actual cost of $985. The journal entry in the Gener record the receipt of the goods will include a: a) Debit to Reserve for Encumbrances for $1,000. b) Credit to Vouchers Payable for $985. c) Debit to Expenditures for $985. d) All of the above are correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Rory City traded in a used pickup for a new pickup truck with a sticker price of $44,000. The old pickup had a fair value of $26,000, historical cost of $47,000, and accumulated depreciation of $18,000. The dealer took the old truck and $16,000 for the new truck. The new truck should be reported on the government-wide financial statements at A.) $15,000 B.) $42,000 C.) $44,000 D.) $41,000
Concord Corporation incurs these expenditures in purchasing a truck: cash price $54,000, accident insurance (during use) $3,900, sales taxes $1,800, motor vehicle license $400, and painting and lettering $1,600. What is the cost of the truck? Cost of the truck $
i）State the recognition criteria for an intangible asset. ii）Briefly explain the recognition criteria for the research and development costs. iii）
What is the cost of the land, based upon the following data? Land purchase price $179,980 Broker's commission 15,546 Payment for the demolition and removal of existing building 3,928 Cash received from the sale of materials salvaged from the demolished building 2,519 $fill in the blank 1
Indicate whether each of the following expenditures should be classified as land, land improvements, buildings, equipment, or none of these. 1. 2. Parking lots Electricity used by a machine 3. Excavation costs 4. Interest on building construction loan 5. Cost of trial runs for machinery 6. Drainage costs 7. Cost to install a machine 8. Fences 9. Unpaid (past) property taxes assumed 10. Cost of tearing down a building when land and a building on it are purchased
Hallmark Furniture Company refinishes and reupholsters furniture. Hallmark Furniture uses a job order cost system. When a prospective customer asks for a price quote on a job, the estimated cost data are inserted on an unnumbered job cost sheet. If the offer is accepted, a number is assigned to the job, and the costs incurred are recorded in the usual manner on the job cost sheet. After the job is completed, reasons for the variances between the estimated and actual costs are noted on the sheet. The data are then available to management in evaluating the efficiency of operations and in preparing quotes on future jobs. On February 14, 20Y1, an estimate of $3,318 for reupholstering a chair and couch was given to Millard Schmidt. The estimate was based on the following data: Estimated direct materials: 30 meters at $30 per meter $ 900 Estimated direct labor: 28 hours at $30 per hour 840 Estimated factory overhead (75% of direct labor cost) 630 Total estimated…
Equipment that had been acquired several years ago by a special revenue fund at a cost of $40,000 was sold for $15,000 cash. Accumulated depreciation of $30,000 existed at the time of the sale. What would be journal entry that should be made in the special revenue fund (in debit and credit form)?
Pitney Company purchased an office building, land, and furniture for $728,100 cash. The appraised value of the assets was as follows. $ 138,630 195,713 481,128 $ 815,472 Land Building Furniture Total Required a. Compute the amount to be recorded on the books for each asset. b. Show the purchase in a horizontal statements model. c. Prepare the general journal entry to record the purchase. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the amount to be recorded on the books for each asset. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.) Allocated Cost Land Building Furniture Total
For the following transactions, prepare the entries that would be recorded in the general fixed assets account group for the city of Evert.a. The city purchased property costing $1,300,000, with three-fourths of the cost allocated to a building.b. A mansion belonging to the great-granddaughter of the city’s founder was donated to the city. The land cost the original owner $600, and the house was built for an additional $50,000. At the time of donation, the property had an estimated fair value of $550,000, of which $330,000 was allocable to the land. The property was accepted and is to be used as a park and a museum.c. A central fire station, financed by general obligation bonds, was two-thirds complete at yearend with costs to date of $800,000 that were recorded in the capital project fund.d. A new fire engine was purchased for $165,000. The city traded a used fire engine originally purchased for $100,000. The trade-in value was $25,000. Both engines were purchased from general…
Several expenditures are listed below. Indicate whether or not each expenditure would be included in the cost of acquisition for each item below. The answer box provides two options, Yes (if the expenditure would be included ) or No, (if the expenditure would not be included.) Cost testing materials and labor in testing a purchased machine Yes before use Compensation for injury to No construction worker Cost of overhaul to a used Yes machine purchased before initial use Cost of tearing down a building Yes on newly acquired land Repairs to a new machine Yes damaged while moving it into > > > > >
Gallon Auto purchased a neighboring lot for a new building and parking lot. Indicate whether each of the following expenditures is properly charged to (a) Land, (b) Land Improvements, or (c) Buildings:a. Paving costsb. Architects’ fee for building designc. Cost of clearing the propertyd. Cost of the propertye. Building construction costsf. Lights around the propertyg. Building permith. Interest on the construction loan
Owe