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1) Nelson Ma purchased equipment at the beginning of July 2015 for \$200,000. Nelson decided to depreciate the equipment over a ten-year period using the reducing-balance method (using 1.8 times the straight line rate). Nelson estimated the equipment’s residual value at \$10,000. Which of the following statements is correct concerning Nelson’s financial statements at 30 June 2016?

a. The carrying amount of the equipment is \$120,000

b.The carrying amount of the equipment is \$165,800

c. The total accumulated depreciation is \$90,000

d. Depreciation expense for 2015 is \$32,001

2) Wong and White are partners. They have agreed to share profits based on a formula where the first \$100 000 is based on service and Wong is to receive \$60 000 and White \$40 000. The next \$100 000 is based on capital contributed where Wong invested \$350 000 and White \$150 000. Any remaining profits are shared equally.

If profits before distributions were \$650 000 how much will White receive?

a.\$90 000

b. \$75 000

c. \$70 000

d. \$295 000

3) Matt purchased equipment at the beginning of July 2015 for \$21 000. Matt decided to depreciate the equipment over a five year period using the straightline method. Matt estimated the equipment’s residual value at \$2 000. The estimated fair market value at the end of June 2016 was \$20 000. Which of the following statements is correct concerning Matt’s financial statements at 30 June 2016?

a.The carrying amount of the equipment \$16,200

b. The carrying amount of the equipment is \$17,000

c. The total accumulated depreciation is \$3,800

d.The equipment will be reported on the statement of financial position at its fair market value of \$20,000

4)Chelsea, Brown and Easton (S, B & E) are partners with capital balances of \$5 000, \$4 000 and \$2 000 respectively and S, B &E share profits and losses 50 per cent, 25 per cent and 25 per cent respectively. Before Easton’s withdrawal the assets are revalued downwards by \$200. The journal entry to account for the downward revaluation would include:

a. Debit accumulated depreciation \$200.00

b.debit Easton, capital \$50.00

c.debit Brown, capital \$66.67

d. credit Chelsea, capital \$100.00