ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DOT COM ASSESSMENT CASE PAPER ANALYSIS / TUTORIALOUTLET DO | Page 15

$20,000,000 1 4. A company has an operating lease for its office
space. The lease term is 120 months and
requires monthly rent of $15,000. As an incentive for the company to
enter into the
lease, the lessor granted the first eight months’ rent at no cost. What
amount of monthly
rent/lease expense should be recognized over the life of the lease?
A.
B.
C.
D. $14,000
$14,062
$15,000
$16,000 5. Sean’s trial balance has the following selected items:
Cash (includes $10,000 in a bond sinking fund
for long-term bond payables)
Accounts receivable
Allowance for doubtful accounts
Deposits received from customers
Merchandise inventory
Unearned rent
Investment in Trading Securities $50,000
20,000
5,000
3,000
7,000
1,000
2,000 What amount should Sean report as total current assets in its
balance sheet?
A. $64,000
B. $67,000
C. $72,000
D. $74,000 6. A note payable was issued in payment for services
received. The services had a fair
value less than the face amount of the note payable. The note payable
has no stated
interest rate. How should the note payable ne presented in the balance