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27.Bart owns a brewery that specializes in a beer containing caffeine. He recently purchased a $20,000 coffee maker to help add a kick to his brew. He expects the coffee maker to have a useful life of ten years and have a salvage value of $2,000. If Bart’s brewery, Bart’s Brewskies, is using the double declining depreciation method, how much would he depreciate in the first year?
28.Bart’s Brewskies saw sales of $50,000 in December-primarily due to New Year’s Eve celebrations. Bart determined that 30% of his sales are paid in cash, while the rest are billed for their brewskies. Of the money owed, 40% is paid December, while the remaining is paid the following month. What is the increase of Accounts Receivable on New Year’s Eve?
29.Bart’s Brewskies has grown beyond its wildest dreams. They are now a corporation and have hired an accountant. Their income statement is now showing a net income. How is this income shown on the Statement of Retained Earnings?
I. It increases retained earnings. II. It is shown as dividends paid to shareholders. III. It does not impact the Statement of Retained Earnings.
30.At year end, the accounts for Doug’s Doohickeys show the following balances prior to adjusting entries:
Accounts Receivable: $10,000 debit balance Allowance for Uncollectible Accounts: $3,500 credit balance Sales were $1,000,000 and 40% of the sales were on credit.
If Doug deems that .4% of his accounts won’t be collected, what is the balance of the Allowance for Uncollectible Accounts going to be?
