1) Explain the impact, if any, on depreciation when estimates that determine
depreciation change.
2) An employer has an employee benefit package that includes employer-paid health
insurance and an employer-paid retirement program. During March, the employer paid
$5,500 for health insurance, and contributed to the employee retirement program 10%
of the employees’ $120,000 gross salaries. Prepare the journal entry to record these
employee benefits.
3) Explain the difference between honoring and dishonoring a note receivable.
4) _______________________ is the stockholders’ equity applicable to common shares
divided by the number of common shares outstanding.
5) On August 1, a company’s board of directors declared a 10% stock dividend to be
distributed on September 1 to the stockholders of record on August 20. The company
had 1,000,000 shares of $2.50 par value common stock outstanding with a market value
of $23 per share. Prepare the journal entries required on August 1, August 20, and
September 1.
6) Describe the accounting for intangible assets, including their acquisition, cost
allocation, and accounts involved.
7) Use the information provided to calculate the missing cash received for interest for
the period.
8) Wiley Consulting purchased $7,000 worth of supplies and paid cash immediately.
Which of the following general journal entries will Wiley Consulting make to record
this transaction?
10) A company had the following items and amounts in its unadjusted trial balance as of
December 31 of the current year:
Prepare the adjusting entry to estimate bad debts assuming an aging analysis estimates
that 8% of the outstanding accounts receivable will be uncollectible.
