Blur

In: Other Topics

Submitted By BLUEFISH77
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Pages 5
A company buys a new parcel of land. Which of the following items is properly debited to the land account?
Question 1 options:
a. paving a road to access the land
b. demolishing an existing structure c. the fees on a mortgage loan on the land d. planting of trees and shrubs

Question 2 (5 points)
What type of asset is subject to depletion?
Question 2 options:
a. natural resources
b. a literary work c. an intangible asset
d. a computer

Question 3 (5 points)
Which is NOT an intangible asset?
Question 3 options:
a. a patent on a new invention b. a copyright on a musical work c. an estimated amount of coal in a piece of owned land that has not yet been mined d. a contract granting the company a right-of-way
Question 4 (5 points)
Which is NOT an advantage of a corporation compared with a partnership or sole proprietorship?
Question 4 options:
a. The corporation's existence is unaffected by the death of an owner. b. Owners enjoy limited liability. c. It is easier to raise large amounts of capital. d. The total tax burden is lower.

Question 5 (5 points)
If a corporation's stock is purchased by the corporation on the open market but is held in treasury and not retired, which of the following is correct?
Question 5 options:
a. A credit will be recorded to the treasury stock account, which is a liability account. b. A debit will be recorded to the treasury stock account, which is an equity account. c. A debit will be recorded to the treasury stock account, which is a liability account. d. A credit will be recorded to the treasury stock account, which is an equity account.

Short Answer
Prepare the following journal entries. Dates and descriptions are not required.
Question 6 (5 points)
A company sells a fixed asset (equipment) for $30,000. The asset originally cost $80,000 and had accumulated depreciation of $55,000 at…...

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