Reference no: EM132461985

ACC 311 Fundamentals of Financial Accounting Assignment - University of Texas, USA

Question 1 - Sheridan Company purchases a new delivery truck for $53000. The sales taxes are $4200. The logo of the company is painted on the side of the truck for $1000. The truck's annual license is $180. The truck undergoes safety testing for $300. What does Sheridan record as the cost of the new truck?

a. $57200.

b. $58680.

c. $58500.

d. $56500.

Question 2 - Wildhorse Co. purchased equipment and these costs were incurred.

Wildhorse will record the acquisition cost of the equipment as

a. $65000.

b. $70870.

c. $70010.

d. $69300.

Question 3 - Cheyenne Corp. bought equipment on January 1, 2017. The equipment cost $380000 and had an expected salvage value of $25000. The life of the equipment was estimated to be 4 years. The depreciation expense using the straight-line method of depreciation is

a. $101250.

b. $76000.

c. $88750.

d. none of these answer choices are correct.

Question 4 - Which depreciation method is most frequently used in businesses today?

a. Units-of-activity.

b. Double-declining-balance.

c. Declining-balance.

d. Straight-line.

Question 5 - Here are selected 2017 transactions of Martinez Corporation.

Jan. 1 - Retired a piece of machinery that was purchased on January 1, 2007. The machine cost $62,800 and had a useful life of 10 years with no salvage value.

June 30 - Sold a computer that was purchased on January 1, 2015. The computer cost $36,400 and had a useful life of 4 years with no salvage value. The computer was sold for $4,300 cash.

Dec. 31 - Sold a delivery truck for $9,250 cash. The truck cost $23,200 when it was purchased on January 1, 2014, and was depreciated based on a 5-year useful life with a $4,100 salvage value.

Required - Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Martinez Corporation uses straight-line depreciation.