“Quiz #3
Each problem is 15 points except for
definition which is 10 points.
Name:
1.  A company sells a fixed asset (equipment) for $30,000. The asset
originally cost $80,000 and had accumulated depreciation of $55,000 at the time
of the sale. Record the journal entry to
recognize the sale.

2.
A company scraps a fully
depreciated piece of equipment originally costing $20,000. They did not receive any proceeds. Record the journal entry.

3.
A company sells a piece of
plant equipment for $2,000. The original
cost was $10,000 and the accumulated depreciation through the date of the sale
was $6,500. Record the journal entry.

4.
A company trades in a truck for
a new one. The old truck had an original
cost of $20,000 and accumulated depreciation of $14,000. The new truck had a sticker price on the
window of $25,000. The dealer gave a
$7,500 trade in allowance and the company wrote a check to the dealer for
$15,750. Record the journal entry.

5.
Define depletion (10 points)

6.
A company sells 200,000 shares
of newly issued common stock having a par value of $1 for $8.50 per share. Record the journal entry.

7.
A company has net income of
$4,580,000. There are 200,000 shares of
$50 par, 6% preferred stock outstanding and 800,000 shares of common
stock. What is the net income per common
share (earnings per share). Show your
calculation.
Quiz #3Each problem is 15 points except for
definition which is 10 points.Name: 1.
A company sells a fixed asset
(equipment) for $30,000. The asset
originally cost $80,000 and had accumulated depreciation of $55,000 at the time
of the sale. Record the journal entry to
recognize the sale.2.
A company scraps a fully
depreciated piece of equipment originally costing $20,000. They did not receive any proceeds. Record the journal entry.3.
A company sells a piece of
plant equipment for $2,000. The original
cost was $10,000 and the accumulated depreciation through the date of the sale
was $6,500. Record the journal entry.4.
A company trades in a truck for
a new one. The old truck had an original
cost of $20,000 and accumulated depreciation of $14,000. The new truck had a sticker price on the
window of $25,000. The dealer gave a
$7,500 trade in allowance and the company wrote a check to the dealer for
$15,750. Record the journal entry.5.
Define depletion (10 points)6.
A company sells 200,000 shares
of newly issued common stock having a par value of $1 for $8.50 per share. Record the journal entry.7.
A company has net income of
$4,580,000. There are 200,000 shares of
$50 par, 6% preferred stock outstanding and 800,000 shares of common
stock. What is the net income per common
share (earnings per share). Show your
calculation.”