Cubs Corporation issues $460,000​, 9​%, 5−year bonds on January​ 1, 2019 for $449,000.

Cubs Corporation issues $460,000​, 9​%, 5−year bonds on January​ 1, 2019 for $449,000. Interest is paid annually on January 1. If Cubs Corporation uses the straight−line method of amortization of bond​ discount, the amount of interest expense recorded at December​ 31, 2019 would​ be:

Answer
43600

Minor Company purchased land which is being prepared for the construction of a new office building. Which of the following should be included in the cost of the land?

A.
cost of removing an old building

B.
cost of clearing and grading the land

C.
cost of the fence which surrounds the property

D. A and B

Answer
 D. A and B


The cost of inventory that is still on hand is called:

A.
inventory, a current asset that appears on the balance sheet.

B.
inventory, a long−term asset that appears on the balance sheet.

C.
cost of goods sold, an expense that appears on the balance sheet.

D.
purchases, a current asset that appears on the balance sheet.

Answer
A.
inventory, a current asset that appears on the balance sheet.


A year−end review of Accounts Receivable and estimated uncollectible percentages revealed the following:
Days Outstanding    Accounts Receivable    Est. Percent Uncollectible
1−30 days    $61,000    3%

31−60 days    $45,000    4%

61−90 days    $25,000    10%

Over 90 days    $5,000    52%

Before the year−end adjustment, the credit balance in Allowance for Uncollectible Accounts was $700. Under the aging−of−receivables method, the balance in the Allowance for Uncollectible Accounts will be ________ after the adjusting entry is made.

Answer
8030