Questions -

Q1. On January 1, 2015, a company purchased a new piece of equipment to use in its business. The details of the purchase are as follows:

Purchase Price $45,000 Shipping Costs $250 Install/Setup Costs $1,000 Salvage Value $3,950 Useful Life 6 Years What is the capitalized cost of the equipment?

a. $46,000

b. $45,000

c. $45,250

d. $46,250

Q2. On January 1, 2015, a company purchased a new piece of equipment to use in its business. The details of the purchase are as follows:

Purchase Price $45,000 Shipping Costs $250 Install/Setup Costs $1,000 Salvage Value $3,950 Useful Life 6 Years Using straight-line depreciation, what is the depreciation expense in 2015?

a. $7,008

b. $6,842

c. $6,883

d. $7,050

Q3. A company issued 20,000 shares of $10 par value common stock at a market price of $16. As a result of this transaction, the amount of stockholders' equity would:

a. increase by $120,000.

b. increase by $320,000.

c. increase by $200,000.

d. not change

Q4. Based on the following information, what is the company's true cash balance?

Bank Statement Balance $14,000 Unadjusted Book Balance $11,750 Outstanding Checks $2,300 Deposits in Transit $580 Collection of Notes Receivable $500 Bank Service Charge Fee $10 Interest Earned  $40

a. $10,030

b. $14,530

c. $12,810

d. $12,280

Q5. On January 1, 2015, Accounts Receivable was $20,000.

Sales on account for 2015 totaled $160,000.

The ending balance of Accounts Receivable was $32,000.

What is the amount of cash collected from customers?

a. $128,000

b. $148,000

c. $172,000

d. $180,000