Hastings Corporation has purchased a group of assets for $25,000. The assets and

Question

Hastings Corporation has purchased a group of assets for $25,000. The assets and their relative market values are listed below. Which of the following amounts would he debited to the I .and account? (Round any intermediate calculations to two decimal places, and your final answer to the nearest dollar.) $7,000 $5,250 $12,500 $4,500 Pluto Corp. sold goods, with a selling price of $17,221, for cash. The state sales tax rate is 8%. What amount is credited to the Sales Revenue account? $1478 $15,843 $17,221 $18,599 Cash received in advance of providing goods or performing services is recorded as___. Service Revenue Accrued Revenue Uncollected Revenue Unearned Revenue When a business records accrued interest expense on a note payable___. Note Payable is credited Cash is debited Interest Expense is credited Interest Payable is credited

Explanation / Answer

8) Total market value = 6800+2900+3800 = 13500

Land ratio = 6800*100/13500 = 50.37%

Land = 25000*50% = 12500

So answer is c) $12500

9) Cash = 17221*1.08 = $18599

So answer is d) $18599

10) Cash received in advance of providing goods or performing services is recorded as unearned revenue

So answer is d) Unearned revenue

11) When a business records accured interest expense on a notes payable interest payable is credited

so answer is d) Interest payable is credited

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