Answer Happy

Question 17 (2 points) Listen → Markel Inc. has acquired a parcel of land and a building for a total cost of $850,000 paid with cash. An independent appraisal supports the fair value of land and building at $180,000 and $720,000 respectively, What is the acquisition cost of building that Markel Inc. should record? $690,000 $710,000 $680,000 $700,000 Page 17 of 17
Question 16 (2 points) Listen → On July 1, 2020, Alfa Limited borrowed 600,000 from a bank for a 6-year period at a 12% interest rate. The firm must make a fixed monthly loan payment of S11,730. Which of the followings is correct when recording monthly loan payment for account Bank Loan Payable on July 31, 20207 Debit Bank Loan Payable $4,530 Debit Bank Loan Payable $6,000 Debit Bank Loan Payable $5,730 Debit Bank Loan Payable $11,730 Page 16 of 17
Question 15 (2 points) Listen Grey Company purchased a new van for floral deliveries on July 1, 2019. The van cost $54,000 with an estimated life of 8 years and 59,000 residual value at the end of its useful life. The double-declining-balance method of depreciation will be used and December 31 is fiscal year end. What is the balance of the Accumulated Depreciation account at December 31 2019? $6,750 O $11,250 $5,625 $13,500 Page 15 of 17
Question 14 (2 points) Listen Kinsella Seed borrowed $300,000 on October 1, 2019, at 8% annual interest rate. The interest and principal are due on October 1, 2020. Kinsella's fiscal year ends at December 31. What journal entry should be made with respect to the interest payment on October 1, 2020? Debit Interest Expense 24,000; Credit Cash 24,000 Debit Interest Expense 18,000; Credit Cash 18,000 Debit Interest Expense 20,000; Debit Interest Payable 4,000; Credit Cash 24,000 Debit Interest Expense 18,000, Debit Interest Payable 6,000; Credit Cash 24,000 Daop 14 of 17
Question 13 (2 points) Listen → Using the aging approach for recording bad debts expense, estimated ending balance of Allowance for Doubtful Accounts are $12,000. If the balance of the Allowance for Doubtful Accounts is $1,000 on debit before adjustment, what is the amount of bad debts expense for that period? $1,000 $11,000 $13,000 $12,000 12 of 17
Question 12 (2 points) Listen → Which of the following Investing Activity results in a cash outflow? Acquiring another company's shares Paying interest on issued bond Repurchasing the company's own shares Page 120117 Making payment to bank loans