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Into exam problems. Just fill it in pleaseAC310 Assessment Exam—50 points undefinedName__________________________________Section# _________undefinedI. PROBLEMSundefinedundefinedPart 1 – Journal Entries with t-accounts undefinedPollard Laminated Products Company began business on January 1, 2019. Below are the following transactions that occurred. undefinedRequired: Prepare the general journal or the adjusting entries for each transactions. Omit explanations.undefinedPollard borrowed $50,000 from the bank and signed a promissory note on January 1st. Pollard paid for inventory that was previously purchased on account for $25,000 (the perpetual inventory system is used) on January 9th. The basement of the building is rented out to another firm and used for storage. The tenant paid $96,000 in advance to Pollard on January 12th for two year’s rent. The firm will begin using the building next month.Pollard performed service on January 15th for $6,000 on account.January 1st, Pollard paid $30,000 for a two year insurance policy for their new building. Pollard debited Prepaid Insurance on January 1st when the $30,000 payment was made. What is the adjusting entry on January 31st?Pollard purchased an intangible asset on January 1 for $120,000. The intangible asset has an expected life of 10 years and is worthless at the end of its life. Pollard uses the straight-line method for cost allocation. What is the adjusting entry on January 31st?undefined Date Account Debit Credit undefined Date Account Debit Credit undefined Date Account Debit Credit undefined Date Account Debit Credit undefinedundefined Date Account Debit Credit undefinedundefined Date Account Debit Credit undefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedundefinedPart 2 – Account RecognitionundefinedFor each item, indicate: (1) the account name (2) the type of account (A=Asset, L=Liability, SE = undefinedStockholder’s Equity, R=Revenue, E= Expense), and (3) whether it is reported on the income statement undefined(I/S), or the balance sheet (B/S) undefinedundefined Description (1) Account Name (2) Type of Account (3) Reported on (I/S) or (B/S) Amount earned on savings and loans to others.The right to collect from customers for prior sales on creditGoods on hand that are being held for resaleCost of intangible assets used up or expired during the periodAmount paid for rent relating to future periodsAmount borrowed from lenders by signing a promissory noteAmount of stock which is bought back by the issuing company and reduces the amount of outstanding stock.Cost of products sold in the ordinary course of businessAmount of earnings distributed to shareholders Amounts (customer deposits) received in advance of providing goods or services to customers undefinedundefinedundefinedPart 3 – T-account Analysis undefinedPalmer Company paid or collected during 2019 the following items:undefinedCash payment for rent during the year$ 17,000undefinedCash collected for interest during the year45,700undefinedCash paid for salaries during the year120,200undefined The following balances have been excerpted from Palmer’s balance sheet:undefinedDecember 31, 2019December 31, 2018undefinedPrepaid rent $ 2,500$ 5,000undefinedInterest receivable5,9002,700undefinedSalaries payable12,30010,600undefined1. The rent expense on the income statement for 2019 was (use t-accounts)undefineda.$19,500.undefinedb.$14,500.undefinedc.$12,000.undefinedd.$2,500.undefined2.The interest revenue on the income statement for 2019 was (use t-accounts)undefineda.$48,900.undefinedb.$43,000.undefinedc.$42,500.undefinedd.$45,700.undefinedundefinedPart 4. MULTIPLE CHOICE undefinedundefined Which of the following would be included in cash flows from investing activities? undefined Cash collected from customers Cash used to purchase equipment Cash received from an issuance of bonds Cash dividends paid Cash paid for inventory undefined On September 1, 2019, a company issued a $50,000,

6-month, 9% note payable to purchase equipment. At December 31, 2019, the company records an adjusting entry to accrue interest incurred but not paid.Adjusting entries are made on an annual (not monthly) basis. The company pays the note with interest at the maturity date.Assuming the company does not use reversing entries, what is the entry to record the payment of the note and interest at the maturity date? undefined Debit Notes Payable for $50,000, debit Interest Expense for $4,500, and credit Cash for $54,500 Debit Interest Expense for $2,000, debit Interest Payable for $2,500, and credit Cash for $4,500 Debit Notes Payable for $50,000, debit Interest Payable for $1,500, debit Interest Expense for $750, and credit Cash for $52,250 Debit Interest Expense for $2,250 and credit Cash for $2,250 Debit Cash for $4,500 and credit Interest Payable for $4,500 undefined A piece of equipment was acquired on January 1, 2018, at a cost of $72,000, with an estimated residual value of $3,000 and an estimated useful life of six years. The company uses the straight line method. What is its book value at December 31, 2019? undefined $24,000 $32,000 $23,000 $49,000 $48,000 undefined A trucking company sold its fleet of trucks for $55,300. The trucks originally cost $1,421,000 and had Accumulated Depreciation of $1,272,000 recorded through the date of disposal. What gain or loss did the trucking company record when it sold the fleet of trucks? undefined Gain of $55,300. Loss of $93,700. Loss of $55,300. Gain of $93,700. No gain recognized undefined The following information is available from the accounting records of the Cups Company: Treasury Stock $20,000 debit balance Common Stock 300,000 credit balance Additional Paid-In Capital 70,000 credit balance Retained Earnings 150,000 credit balance What is the amount of stockholders’ equity for Cups Company? $350,000 $430,000 $540,000 $520,000 $500,000 Which of the following statements about treasury stock is correct? When a company reissues treasury stock for more than it originally paid for the stock, it reports a gain that increases net income. Treasury stock is reported as issued and outstanding stock. Treasury stock is reported as an asset on the balance sheet. When a company purchases treasury stock, it decreases total stockholders’ equity. Treasury stock gives rise to interest income. undefined Which of the following statements about Retained Earnings is correct? undefined Retained Earnings equals cash available to pay dividends to stockholders. Retained Earnings is decreased by purchases of treasury stock. Retained Earnings is increased by the par value of the common stock that is issued. Retained Earnings consists of cumulative net income less any net losses and dividends since inception. Retained Earnings is equal to cash less total liabilities. undefinedundefined Small Town Rentals depreciates its stretch Hummer using the units-of-production depreciation method and bases usage on the miles driven per year. The estimated useful life of the vehicle is 250,000 miles. The vehicle was purchased for $115,000 and is not expected to have any residual value at the end of its life. It was driven a total of 40,000 miles during the first year of its useful life and 25,000 miles during the second year. What is the amount of Accumulated Depreciation recorded on the vehicle at the end of those two years? undefineda. $70,769undefinedb. $33,400undefinedc. $46,000undefinedd. $18,400undefinede. $29,900undefined On January 1, 2019, Slow Sloth, Co. signed a $315,000, 5-year note payable to buy a new industrial veneer cutter. Slow Sloth plans to use the machine for 10 years and then sell it for its scrap value of $5,000. Using straight-line depreciation, depreciation expense for the year ended December 31, 2019 equals: undefined $31,000. $284,000. $283,500. $31,500. $32,000 undefined Your company pays $900,000 for a patent that has 10 years remaining.Each year, your company should: undefined debit Amortization expense for $90,000 and credit Accumulated Amortization (or Patent) for $90,000. debit Accumulated Amortization (or Patent) for $90,000 and credit Amortization Expense for $90,000. report no Amortization Expense because patents are not subject to amortization use the accelerated method (double-declining balance) to amortize the patent over 20 years. debit Amortization expense for $45,000 and credit Accumulated Amortization (or Patent) for $45,000.