Question

T/F ( Give me all answers, DO NOT GIVE ONLY ONE OR TWO. I NEED ALL)

1 Benefits are extra compensation items that are not paid directly to an employee.

2 On July 1, 2018, Shannon Equipment Dealer issued $590,000 of 6% bonds payable that mature in seven years. These bonds were issued at face value and pay interest each June 30 and December 31. Each semiannual interest payment will be higher than the interest expense.

3 Earnings per share reports the amount of net income (loss) for each share of the company's issued common stock.

4 A trial balance is the list of only a company's asset and liability accounts, along with their account numbers, at a point in time.

5 Checking accounts and money market accounts are examples of cash equivalents.

6 Bad debt expense is a cost to the seller of extending credit.

7 Brooklyn Market recently traded in store fixtures. The exchange had commercial substance. The old fixtures had a cost of $70,000 and accumulated depreciation of $58,000. Brooklyn paid $99,000 for the new store fixtures. These new fixtures had a market value of $133,000. There is a loss of $22,000 on this exchange.

8 Dodgers Corp.'s beginning and ending total assets in the year 2019 were $19,900,000 and $22,100,000, respectively. Its asset turnover ratio for the year was calculated to be 1.8 times. Calculate the amount of net sales for the year 2019. A 53,500,000 B 24,960,000 C 37,800,000 D 43,100,000

Answer 1

1.Benefits are extra compensation items that are not paid directly to an employee

Ans:- True

2. On July 1, 2018, Shannon Equipment Dealer issued $590,000 of 6% bonds payable that mature in seven years. These bonds were issued at face value and pay interest each June 30 and December 31. Each semiannual interest payment will be higher than the interest expense.

Ans:- True

3 Earnings per share reports the amount of net income (loss) for each share of the company's issued common stock

Ans:- True

4 A trial balance is the list of only a company's asset and liability accounts, along with their account numbers, at a point in time

Ans:- True

5 Checking accounts and money market accounts are examples of cash equivalents

Ans:- False

6 Bad debt expense is a cost to the seller of extending credit.

Ans:- False

7 Ans:- True

Book Value of old fixtures = Cost of old Fixtures - Accumlated depreciation

= $ 70,000 - $58,000

= $ 12,000

Loss on exchange = Market Value of New Fixtures - Book Value of old fixtures- Cash paid

= $1,33,000 - $12,000- $99,000

= $ 22,000

8. ANS:- C 37,800,000

Explanation :-

Asset turnover ratio = Net sales / Average total assets

1.8 = Net sales / [($19,900,000 + $22,100,000) / 2]

1.8 = Net sales / $21,000,000

Net sales = 1.8 * $21,000,000

Net sales = $37,800,000