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40. Selected T-account balances for Company ABC are shown below as of the end of January. The accounting period prepares monthly adjustments and uses straight-line depreciation.
Truck
Accumulated Depreciation - Truck
Jan 37
$28,800
Jan. 31
$3,600
If the truck has a useful life of 8 years or 96 months with no salvage value, how many months has the Company owned the truck as of January 31?
A) 3 months
B) 24 months
C) 12 months
D) 18 months
Did the company collect from credit customers during the year? Selected Balance Sheet Data:
2016 Inventories: $221,418
Accounts Receivable: $121,333
2015: $226,893
$122,087
A) $1,003,881
B) $1,004,635
C) $1,003,127
D) $1,247,301
42. Company ABC reports the following line items (partial list shown) in its trial balance:
Accounts payable: $20,000
Inventory
Accounts receivable: $40,000
Depreciation Expense
Bonds payable (long-term): $250,000
Goodwill
Retained earnings: $50,000
Sales revenue
Unearned revenue: $100,000
Supplies inventory
Cost of goods sold: $200,000
Supplies expense
Based on this partial list, what was the company's net income?
A) $40,000
B) $100,000
C) $10,000
D) $115,000
E) $700,000
F) $5,000
G) $20,000
Microsoft Store
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