All bank memos reported on the bank reconciliation require entries in the company's accounts.
a. True
b. False
Indicate whether the statement is true or false
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Q. 2) Bondholders are considered owners of a company.
Indicate whether the statement is true or false
(
Q. 3) Personnel termination control plans might include all of the following except:
a. require immediate separation
b. identify the employee's reasons for leaving
c. establish a policy of forced vacations
d. collect the employee's keys, badges, etc.
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Q. 4) Marcy wants to expand her catering business. However, she was raised to avoid debt at all costs and prefers to have cash in hand before buying anything.
She has 15,000 in cash available for expansion, but the total estimated cost of the expansion is 100,000. Explain to Marcy the advantages and disadvantages using a long-term note payable to finance the expansion.
What will be an ideal response?
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Q. 5) A(n) ____________________ identifies the employer on all payroll forms and reports filed with the IRS.
Fill in the blank(s) with correct word
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Q. 6) Peterson Company purchased land, building, and equipment for a total cash price of 900,000.
An independent appraiser told management that if the assets had been acquired separately, the company would have paid 300,000, 700,000, and 200,000, respectively, for each of the assets purchased. Write your answers on the lines provided and show your work in the space provided below each question.
1. Use the relative fair market value method to determine how much of the 900,000 purchase price should be used for each of the three separate assets.
______________ should be used for the cost of the land.
______________ should be used for the cost of the building.
______________ should be used for the cost of the equipment.
2. Determine how much depreciation expense the company will have each full year using the straight-line method and the following assumptions:
The building has a 30-year useful life and a zero salvage value.
The equipment has an 8-year useful life and a 50,000 salvage value.
______________ annual depreciation expense for the building
______________ annual depreciation expense for the equipment
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