财会2010期末考试题.docVIP

Final Exam: Chapters 1-15 Name Financial Accounting, Sixth Edition Instructor Section # Date Part I II III IV V VI VII VIII Total Points 90 25 14 15 12 15 14 15 200 Score PART I — MULTIPLE CHOICE (90 points) Instructions Designate the best answer for each of the following questions. Questions 1 and 2 are based on the following information: Bono Company recently incurred the following costs: (1) Purchase price of land and dilapidated building $350,000 (2) Real estate brokers commission 14,000 (3) Net demolition costs of dilapidated building 39,000 (4) Excavation costs for new building 44,000 (5) Architects fees and building permits 30,000 (6) Costs associated with new building construction 950,000 (7) Costs associated with new furniture and equipment 250,000 (8) Actual interest costs during building construction 168,000 (9) Actual interest cost after completion of building construction 120,000 (10) Costs of walks, driveways, and parking lot 55,000 ____ 1. The building should be recorded on Bonos books at a. $880,000. b. $924,000. c. $963,000. d. $1,192,000. ____ 2. Land should be recorded on Bonos books at a. $350,000. b. $364,000. c. $403,000. d. $433,000. ____ 3. Carson Supply bought equipment at a cost of $72,000 on January 2, 2005. It originally had an estimated life of ten years and a salvage value of $12,000. Carson uses the straight-line depreciation method. On December 31, 2008, Carson decided the useful life likely would end on December 31, 2012, with a salvage value of $6,000. The depreciation expense recorded on December 31, 2008, should be a. $6,000. b. $6,600. c. $9,600. d. $13,200. ____ 4. In order to be relevant, accounting information must a. be neutral. b. be verifiable. c. help predict future events. d. be a faithful representation. ____ 5. Riodan Company sold old equipment for $35,000. The equipment had a cost of $70,000 and accumulated depreciation of $42,000. Th