Author Question: Consider the following information taken from the cash account. Assume cash payments were 80 of ... (Read 39 times)

ENagel · **on:** Jul 5, 2018

Consider the following information taken from the cash account. Assume cash payments were 80 of collections. Cash ?? Beg. balance 115,375 Collections ?? Disbursements 80,275 End balance How much was the beginning balance of the cash account?
a. 57,200 b. 92,300
c. 103,350 d. 35,100

Question 2

On January 1, 2011, Ace Electronics purchased a patent for 2,000,000 cash, which allows Ace the exclusive legal right to manufacture a new microchip for the next 20 years.

However, Ace thinks that the useful life of the patent is only 5 years because rapid changes in technology will make the microchip obsolete. For 2011, Ace should report ________.
A) depreciation expense of 100,000
B) amortization expense of 100,000
C) depreciation expense of 400,000
D) amortization expense of 400,000