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A COMPANY BUYS A NEW PARCEL OF LAND. WHICH OF THE FOLLOWING ITEMS IS PROPERLY

A COMPANY BUYS A NEW PARCEL OF LAND. WHICH OF THE FOLLOWING ITEMS IS PROPERLY

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Author: Joyce Buda
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Question 1 (5 points)A company buys a new parcel of land. Which of the following items isproperly debited to the land account?Question 1 options:paving a road to access the landthe fees on a mortgage loan on the landdemolishing an existing structureplanting of trees and shrubsQuestion 2 (5 points)What type of asset is subject to depletion?Question 2 options:a computera literary worknatural resourcesan intangible assetQuestion 3 (5 points)Which is NOT an intangible asset?Question 3 options:a patent on a new inventiona copyright on a musical worka contract granting the company a right-of-wayan estimated amount of coal in a piece of owned land that has not yet beenQuestion 4 (5 points)Which is NOT an advantage of a corporation compared with apartnership or sole proprietorship?Question 4 options:Owners enjoy limited liability.It is easier to raise large amounts of capital.The corporation's existence is unaffected by the death of an owner.The total tax burden is lower.Question 5 (5 points)If a corporation's stock is purchased by the corporation on the openmarket but is held in treasury and not retired, which of the following iscorrect?Question 5 options:A debit will be recorded to the treasury stock account, which is a liability accA credit will be recorded to the treasury stock account, which is a liability acA credit will be recorded to the treasury stock account, which is an equity acA debit will be recorded to the treasury stock account, which is an equity accShort AnswerPrepare the following journal entries. Dates and descriptions are notrequired.Question 6 (5 points)A company sells a fixed asset (equipment) for $30,000. The assetoriginally cost $80,000 and had accumulated depreciation of $55,000at the time of the sale. Record the journal entry to recognize the sale.Question 7 (5 points)A company scraps a fully depreciated piece of equipment originallycosting $20,000. They did not receive any proceeds. Record the journalentry.Question 8 (5 points)A company sells a piece of plant equipment for $2,000. The originalcost was $10,000, and the accumulated depreciation through the dateof the sale was $6,500. Record the journal entry.Question 9 (5 points)A company buys a new pickup truck for $35,000 on the first day of themonth. They will assume a 5-year life with a salvage value equal to10% of the original cost. Record the first monthly depreciation journalentry.

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