This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
For more classes visit
www.snaptutorial.com
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an
For more classes visit
www.snaptutorial.com
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms
Strayer university acc 304 final exam part 1 (3 sets) newshyaminfotech
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
ACC 423 MART Education for Service--acc423mart.comkopiko57
FOR MORE CLASSES VISIT
www.acc423mart.com
Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825. Click the Assignment Files tab to submit your
ACC 423 MART Education Counseling--acc423mart.commamata59
FOR MORE CLASSES VISIT
www.acc423mart.com
Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825. Click the Assignment Files tab to submit your assignment. The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo
For more classes visit
www.snaptutorial.com
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an
For more classes visit
www.snaptutorial.com
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms
Strayer university acc 304 final exam part 1 (3 sets) newshyaminfotech
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
ACC 423 MART Education for Service--acc423mart.comkopiko57
FOR MORE CLASSES VISIT
www.acc423mart.com
Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825. Click the Assignment Files tab to submit your
ACC 423 MART Education Counseling--acc423mart.commamata59
FOR MORE CLASSES VISIT
www.acc423mart.com
Create a 10- to 12-slide presentation that addresses each question within the Comparative Analysis Case, pp. 824-825. Click the Assignment Files tab to submit your assignment. The Coca-Cola Company and PepsiCo, Inc. The financial statements of Coca-Cola and PepsiCo
For more course tutorials visit
www.newtonhelp.com
This Tutorial contains 2 Different Course Project
ACCT 551 Course Project (Notes to Financial Statement)
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
Question 1. 1. (TCO C) Which characteristic is not possessed by intangible assets? (Points : 5)
Physical existence
Short-lived
Result in future benefits
Expensed over current and/or future years
Question 2. 2. (TCO C) One factor that is not considered in determining the useful life of an intangible asset is (Points : 5)
salvage value.
provisions for renewal or extension.
legal life.
acc 291 new,uopacc 291 new,uopacc 291 new complete course,uopacc 291 new entire course,uopacc 291 new week 1,uop acc 291 new week2,uop acc 291 new week 3,uop acc 291 new week 4,uop acc 291 new week 5,uop acc 291 new tutorials,uopacc 291 new assignments,uopacc 291 newhelp
1. Mike has come to you with these statements about corporations.docxjackiewalcutt
1. Mike has come to you with these statements about corporations:
a) Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
b) Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
c) When a corporation is formed, organization costs are recorded as an asset.
d) Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
e) The number of issued shares is always greater than or equal to the number of authorized shares.
f) A journal entry is required for the authorization of capital stock.
g) Publicly held corporations usually issue stock directly to investors.
h) The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
i) The market price of common stock is usually the same as its par value.
j) Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
Directions
Indicate whether each statement is true orfalse. Iffalse, identify a way to correct the statement.
2. During its first year of operations, Plight Corporation had the following transactions pertaining to common stock.
Jan. 10 Issued 70,000 shares for cash at $5 per share.
July 1 Issued 40,000 shares for cash at $7 per share.
Directions
(a) Journalize the transactions, assuming that the common stock has a par value of $5 per share.
(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
3. Locket Co. had the following transactions during the current period:
Mar. 2nd Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate.
June 12th Issued 60,000 shares of $5 par value common stock for cash of $375,000.
July 11th Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28th Purchased 2,000 shares of treasury stock for $80,000.
Directions
Journalize these transactions for Locket.
4. On January 1, 2015, the stockholders’ equity section ofHarlequin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the corporation entered into the following treasury stock transactions.
Mar. 1st Purchased 50,000 shares for cash at $15 per share.
July 1st Re-issued 10,000 treasury shares for cash at $17 per share.
Sept. 1st Sold 8,000 treasury shares for cash at $14 per share.
Directions
(a) Journalize the treasury stock transactions.
(b) Revise the entry for September 1st, assuming the treasury shares were sold at $12 ...
Question1On January 1, 2014, Flip Company purchased 10,000 shares.pdfsuretheboss10
Question1:
In an effort to concentrate its resources in more profitable areas, Frick Corporation recently sold
its family pizza restaurant segment. The disposal constitutes:
a. an extraodinary item.
b. a discontinued operation which should be treated as a prior period adjustment.
c. a discontinued operation which should be disclosed net-of-tax effects.
d. a portion of income from continuing operations.
Question2:
Frick Corporation has 100,000, 5%, $100 par preferred shares outstanding. The stock is callable
at 102, but was originally issued at 99. The current dividend has been fully paid. Total
stockholders\' equity is $20,000,000. The residual common equity is:
a. $20,000,000
b. $10,100,000
c. $10,000,000
d. $9,800,000
Question3:
Frick Company\'s balance sheet included cash ($4,000,000), accounts receivable ($16,000,000),
inventories ($10,000,000), prepaid expenses ($2,000,000), accounts payable ($9,000,000), and
accrued expenses ($7,000,000). These are the only current items.
a. The quick ratio is 2:1.
b. The quick ratio is 1.25:1.
c. The current ratio is 1.875:1.
d. Both A and C.
Question4:
Selected information for 2014 is: cost of goods sold, $5,400,000; average inventory, $1,800,000;
net sales, $7,200,000; average receivables, $960,000; and net income, $720,000. Assuming a
360-day year, what was the inventory turnover ratio for 2014?
a. 333
b. 3
c. 7.5
d. 20
Question5:
On the schedule of cost of goods manufactured:
a. beginning work-in-process plus direct materials used equals manufacturing costs.
b. cost of goods manufactured is the same thing as total manufacturing costs.
c. work-in-process will necessarily increase if total manufacturing costs increase.
d. factory overhead plus beginning work-in-process equals manufacturing costs.
Question6:
Which costing method seems ideally suited to the production of homogenous products in
continuous throughput?
a. Activity-based costing.
b. Job order costing.
c. Process costing.
d. Absorption costing.
Question7:
Frick Company uses a job order cost system and applies overhead based on estimated rates. The
overhead application rate is based on total estimated overhead costs of $200,000 and direct labor
hours of 50,000. For job 836, direct labor hours were 800.
a. Factory Overhead should be debited for $3,200.
b. Factory Overhead should be credited for $3,200.
c. Overhead Expense should be debited for $3,200.
d. Overhead Expense should be credited for $3,200.
Question8:
For job 1838, there were 1,000 direct labor hours, and actual overhead was $500 for depreciation
and $1,400 for indirect labor. Overhead is applied at $2 per direct labor hour. Which account
should be debited for $1,900?
a. Work in Process.
b. Cost of Goods Sold.
c. Factory Overhead.
d. Cost of Goods Manufactured.
Solution
Answer:1 a. an extraodinary item.
Answer:2 a. $20,000,000
Answer:3 b. The quick ratio is 1.25:1.
Quick Ratio=Quick Asset/Current liability
=($4,000,000+$16,000,000)/($9,000,000+$7,000,000)
=1.25:1
Quick asset does n.
For more course tutorials visit
www.newtonhelp.com
This Tutorial contains 2 Different Course Project
ACCT 551 Course Project (Notes to Financial Statement)
For more course tutorials visit
Uophelp is now newtonhelp.com
www.newtonhelp.com
Question 1. 1. (TCO C) Which characteristic is not possessed by intangible assets? (Points : 5)
Physical existence
Short-lived
Result in future benefits
Expensed over current and/or future years
Question 2. 2. (TCO C) One factor that is not considered in determining the useful life of an intangible asset is (Points : 5)
salvage value.
provisions for renewal or extension.
legal life.
acc 291 new,uopacc 291 new,uopacc 291 new complete course,uopacc 291 new entire course,uopacc 291 new week 1,uop acc 291 new week2,uop acc 291 new week 3,uop acc 291 new week 4,uop acc 291 new week 5,uop acc 291 new tutorials,uopacc 291 new assignments,uopacc 291 newhelp
1. Mike has come to you with these statements about corporations.docxjackiewalcutt
1. Mike has come to you with these statements about corporations:
a) Corporation management is both an advantage and a disadvantage of a corporation compared to a proprietorship or a partnership.
b) Limited liability of stockholders, government regulations, and additional taxes are the major disadvantages of a corporation.
c) When a corporation is formed, organization costs are recorded as an asset.
d) Each share of common stock gives the stockholder the ownership rights to vote at stockholder meetings, share in corporate earnings, keep the same percentage ownership when new shares of stock are issued, and share in assets upon liquidation.
e) The number of issued shares is always greater than or equal to the number of authorized shares.
f) A journal entry is required for the authorization of capital stock.
g) Publicly held corporations usually issue stock directly to investors.
h) The trading of capital stock on a securities exchange involves the transfer of already issued shares from an existing stockholder to another investor.
i) The market price of common stock is usually the same as its par value.
j) Retained earnings is the total amount of cash and other assets paid in to the corporation by stockholders in exchange for capital stock.
Directions
Indicate whether each statement is true orfalse. Iffalse, identify a way to correct the statement.
2. During its first year of operations, Plight Corporation had the following transactions pertaining to common stock.
Jan. 10 Issued 70,000 shares for cash at $5 per share.
July 1 Issued 40,000 shares for cash at $7 per share.
Directions
(a) Journalize the transactions, assuming that the common stock has a par value of $5 per share.
(b) Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
3. Locket Co. had the following transactions during the current period:
Mar. 2nd Issued 5,000 shares of $5 par value common stock to attorneys in payment of a bill for $30,000 for services performed in helping the company to incorporate.
June 12th Issued 60,000 shares of $5 par value common stock for cash of $375,000.
July 11th Issued 1,000 shares of $100 par value preferred stock for cash at $110 per share.
Nov. 28th Purchased 2,000 shares of treasury stock for $80,000.
Directions
Journalize these transactions for Locket.
4. On January 1, 2015, the stockholders’ equity section ofHarlequin Corporation shows common stock ($5 par value) $1,500,000; paid-in capital in excess of par $1,000,000; and retained earnings $1,200,000. During the year, the corporation entered into the following treasury stock transactions.
Mar. 1st Purchased 50,000 shares for cash at $15 per share.
July 1st Re-issued 10,000 treasury shares for cash at $17 per share.
Sept. 1st Sold 8,000 treasury shares for cash at $14 per share.
Directions
(a) Journalize the treasury stock transactions.
(b) Revise the entry for September 1st, assuming the treasury shares were sold at $12 ...
Question1On January 1, 2014, Flip Company purchased 10,000 shares.pdfsuretheboss10
Question1:
In an effort to concentrate its resources in more profitable areas, Frick Corporation recently sold
its family pizza restaurant segment. The disposal constitutes:
a. an extraodinary item.
b. a discontinued operation which should be treated as a prior period adjustment.
c. a discontinued operation which should be disclosed net-of-tax effects.
d. a portion of income from continuing operations.
Question2:
Frick Corporation has 100,000, 5%, $100 par preferred shares outstanding. The stock is callable
at 102, but was originally issued at 99. The current dividend has been fully paid. Total
stockholders\' equity is $20,000,000. The residual common equity is:
a. $20,000,000
b. $10,100,000
c. $10,000,000
d. $9,800,000
Question3:
Frick Company\'s balance sheet included cash ($4,000,000), accounts receivable ($16,000,000),
inventories ($10,000,000), prepaid expenses ($2,000,000), accounts payable ($9,000,000), and
accrued expenses ($7,000,000). These are the only current items.
a. The quick ratio is 2:1.
b. The quick ratio is 1.25:1.
c. The current ratio is 1.875:1.
d. Both A and C.
Question4:
Selected information for 2014 is: cost of goods sold, $5,400,000; average inventory, $1,800,000;
net sales, $7,200,000; average receivables, $960,000; and net income, $720,000. Assuming a
360-day year, what was the inventory turnover ratio for 2014?
a. 333
b. 3
c. 7.5
d. 20
Question5:
On the schedule of cost of goods manufactured:
a. beginning work-in-process plus direct materials used equals manufacturing costs.
b. cost of goods manufactured is the same thing as total manufacturing costs.
c. work-in-process will necessarily increase if total manufacturing costs increase.
d. factory overhead plus beginning work-in-process equals manufacturing costs.
Question6:
Which costing method seems ideally suited to the production of homogenous products in
continuous throughput?
a. Activity-based costing.
b. Job order costing.
c. Process costing.
d. Absorption costing.
Question7:
Frick Company uses a job order cost system and applies overhead based on estimated rates. The
overhead application rate is based on total estimated overhead costs of $200,000 and direct labor
hours of 50,000. For job 836, direct labor hours were 800.
a. Factory Overhead should be debited for $3,200.
b. Factory Overhead should be credited for $3,200.
c. Overhead Expense should be debited for $3,200.
d. Overhead Expense should be credited for $3,200.
Question8:
For job 1838, there were 1,000 direct labor hours, and actual overhead was $500 for depreciation
and $1,400 for indirect labor. Overhead is applied at $2 per direct labor hour. Which account
should be debited for $1,900?
a. Work in Process.
b. Cost of Goods Sold.
c. Factory Overhead.
d. Cost of Goods Manufactured.
Solution
Answer:1 a. an extraodinary item.
Answer:2 a. $20,000,000
Answer:3 b. The quick ratio is 1.25:1.
Quick Ratio=Quick Asset/Current liability
=($4,000,000+$16,000,000)/($9,000,000+$7,000,000)
=1.25:1
Quick asset does n.
On January 1, 2014, Gottlieb Corporation issued $4,360,000 of 10-y.docxhopeaustin33688
On January 1, 2014, Gottlieb Corporation issued $4,360,000 of 10-year, 8% convertible debentures at 104. Interest is to be paid semiannually on June 30 and December 31. Each $1,000 debenture can be converted into 9 shares of Gottlieb Corporation $104 par value common stock after December 31, 2015.
On January 1, 2016, $436,000 of debentures are converted into common stock, which is then selling at $116. An additional $436,000 of debentures are converted on March 31, 2016. The market price of the common stock is then $119. Accrued interest at March 31 will be paid on the next interest date.
Bond premium is amortized on a straight-line basis.
Make the necessary journal entries for:
(a)
December 31, 2015.
(c)
March 31, 2016.
(b)
January 1, 2016.
(d)
June 30, 2016.
Record the conversions using the book value method. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
No.
Date
Account Titles and Explanation
Debit
Credit
(a)
Dec. 31, 2015
(b)
Jan. 1, 2016
(c)
Mar. 31, 2016
(To record interest expense)
Mar. 31, 2016
(To record the conversion)
(d)
Jun. 30, 2016
Exercise 16-7
Illiad Inc. has decided to raise additional capital by issuing $176,800 face value of bonds with a coupon rate of 11%. In discussions with investment bankers, it was determined that to help the sale of the bonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bonds without the warrants is considered to be $148,320, and the value of the warrants in the market is $16,480. The bonds sold in the market at issuance for $162,000.
(a) What entry should be made at the time of the issuance of the bonds and warrants? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b) Prepare the entry if the warrants were nondetachable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Exercise 16-10
On November 1, 2014, Olympic Company adopted a stock-option plan that granted options to key executives to purchase 66,500 shares of the company’s $13 par value common stock. The options were granted on January 2, 2015, and were exercisable 2 years after the date of grant if the grantee was still an employee of the company. The options expired 6 years from date of grant. The option price was set at $50, and the fair value option-pricing model determines the total comp.
All answers must be on the answer sheet provided. $ and . needed.docxmilissaccm
All answers must be on the answer sheet provided. $ and . needed
Question 1
(30 points)
QUESTION 1A
On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
The following events occurred during 2015 and were not recorded:
a
On January 1, Raleigh Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.
Stock dividends were distributed on January 31 to shareholders as of January 25.
c. On February 15, Raleigh reacquired 1,000 shares of common stock for $20 each.
d. On March 31, Raleigh reissued 250 shares of treasury stock for $25 each.
e. On July 1, Raleigh reissued 500 shares of treasury stock for $16 each.
f. On October 1, Raleigh declared full year dividends for preferred stock (
see outstanding shares in table above).
g. Then, paid preferred shareholders on October 15
h. On October 1, Raleigh also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares.
i. Then, paid common shareholders on October 15.
j. On December 15, Raleigh split common stock 2 shares for 1.
QUESTION 1B
Given below is information for the Stockholder Equity section of Jones Balance Sheet as of December, 2014
b
8% Preferred stock, $100 par value, 10,000 shares authorized, 5,000 shares issued and outstanding.
c
Common stock, no par, $2 stated value, 500,000 shares authorized, 204,000 shares issued and outstanding
d
Additional paid-in capital:
Preferred stock in excess of par value is $34,000
Common stock in excess of stated value is $437,000
Requirements:
Prepare a Stockholders' section of Jones classified balance sheet as of December 31, 2014.
Question 2
(5 points)
On January 1, 2016, XYZ Company purchased shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Rayco made $25,000 of net income in 2014, and paid dividends of $10,000.
Requirements:
Prepare the January 1 and December 31 general journal entries for XYZ Company.
How much should the XYZ Company report on the balance sheet for the investment in Rayco at the end of 2016?
Question 3
(10 points)
The following is selected information from Reliant Company for the fiscal years ended December 31, 2016: Reliant Company had net income of $1,225,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $40,000. Depreciation was $500,000. Purchases of plant assets were for $1,250,000 cash, and sold plant assets for $500,000 cash, which resulted in a $50,000 gain. Stock was issued in exchange for an outstanding note payable of $725,000. Dividends of $300,000.
Question 1 30 pointsOn December 31, 2014, Frick Incorpora.docxteofilapeerless
Question
1: 30% points:
On December 31, 2014, Frick Incorporated, had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2014 and were not recorded:
a. On January 1, Frick declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Frick reacquired 1,000 shares of common stock for $20 each.
c. On March 31, Frick reissued 250 shares of treasury stock for $25 each.
d. On July 1, Frick reissued 500 shares of treasury stock for $16 each.
e. On October 1, Frick declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Frick split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.
Requirements:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2014.
Question
2: 5% points:
On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Floozy made $25,000 of net income in 2014, and paid dividends of $10,000. The price of Floozy's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year.
Acct221 Page 1 of 8
Requirements:
a.
Prepare the January 1 & December 31 general journal entries for Frick Company.
b.
How much should the Frick Company report on the balance sheet for the investment in Floozy as the end of 2014
Question
3: 10% points
:
The following is selected information from Flip Company for the fiscal years ended December 31, 2014: Flip Company had net income of $1,225,000. Depreciation was $500,000, purchases of plant assets were $1,250,000, and disposals of plant assets for $500,000 resulted in a $50,000 gain. Stock was issued in exchange for an outstanding note payable of $725,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $40,000. Dividends of $300,000 were paid to shareholders. Flip Company had interest expense of $50,000. Cash balance on January 1, 2014 was $250,000.
Requirements:
Prepare Flip Company's statement of cash flows for the year ended December 31, 2014 u.
Pechstein Corporation issued 2,050 shares of $10 par value common .docxherbertwilson5999
Pechstein Corporation issued 2,050 shares of $10 par value common stock upon conversion of 1,060 shares of $50 par value preferred stock. The preferred stock was originally issued at $58 per share. The common stock is trading at $27 per share at the time of conversion.
Record the conversion of the preferred stock. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
On January 1, 2012 (the date of grant), Lutz Corporation issues 2,720 shares of restricted stock to its executives. The fair value of these shares is $127,500, and their par value is $10,200. The stock is forfeited if the executives do not complete 3 years of employment with the company.
Prepare the journal entry (if any) on January 1, 2012, and on December 31, 2012, assuming the service period is 3 years. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
1/1/12
12/31/12
Rockland Corporation earned net income of $717,128 in 2012 and had 171,000 shares of common stock outstanding throughout the year. Also outstanding all year was $868,000 of 10% bonds, which are convertible into 17,000 shares of common. Rockland’s tax rate is 36 percent.
Compute Rockland’s 2012 diluted earnings per share. (Round answer to 2 decimal places, e.g. $3.55.)
Diluted earnings per share
$
On January 1, 2012, when its $36 par value common stock was selling for $90 per share, Bartz Corp. issued $10,260,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $10,875,600. The present value of the bond payments at the time of issuance was $9,003,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2013, the corporation’s $36 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2014, when the corporation’s $16 par value common stock was selling for $175 per share, holders of 20% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.
(a) Prepare the entry to record the original issuance of the convertible debentures. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
(b) Prepare the entry to r.
Question 1 30 pointsOn December 31, 2014, Frick Incorporate.docxteofilapeerless
Question
1: 30% points:
On December 31, 2014, Frick Incorporated, had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2014 and were not recorded:
a. On January 1, Frick declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Frick reacquired 1,000 shares of common stock for $20 each.
c. On March 31, Frick reissued 250 shares of treasury stock for $25 each.
d. On July 1, Frick reissued 500 shares of treasury stock for $16 each.
e. On October 1, Frick declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Frick split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.
Requirements
:
a.
Prepare journal entries for the transactions listed above. (hint:
one entry for each a through g and keep track of how each entry affects the stockholders’ equity section so you can move on the part b of this question.)
b.
Prepare a Stockholders' section
of a classified balance sheet as of December 31, 2014.
Question
2: 5% points:
On January 1, 2014, Frick Company purchased 10,000 shares of the stock of Floozy, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Floozy made $25,000 of net income in 2014, and paid dividends of $10,000. The price of Floozy's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year.
Requirements:( Hint: Recall the equity method used when one company buys another company)
a.
Prepare the January 1 & December 31 general journal entries for Frick Company.
b.
How much should the Frick Company report on the balance sheet for the investment in Floozy as the end of 2014
Question
3: 15% points
:
The following is selected information from Flip Company for the fiscal years ended December 31, 2014: Flip Company had net income of $1,225,000. Depreciation was $500,000, purchases of plant assets were $1,250,000, and disposals of plant assets for $500,000 resulted in a $50,000 gain. Stock was issued in exchange for an outstanding note payable of $725,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $40,000. Dividends of $300,000 were paid to shareholders. Flip Company had interest expense of $50,000. Cash balance on January 1, 2014 was $250,000.
Requirements:
Prepare Flip Company's statement of cash flows f.
Please see below. I also attached the answer sheet.For this .docxsarantatersall
Please see below. I also attached the answer sheet.
For this exam, omit all general journal entry explanations.
Ensure to include correct dollar signs, underlines & double underlines.
Question
1: 30% points:
On December 31, 2014, Flimsy Incorporated, had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2014 and were not recorded:
a. On January 1, Flimsy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Flimsy reacquired 1,000 shares of common stock for $20 each.
c. On March 31, Flimsy reissued 250 shares of treasury stock for $25 each.
d. On July 1, Flimsy reissued 500 shares of treasury stock for $16 each.
e. On October 1, Flimsy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. One December 15, Flimsy split common stock 2 shares for 1.
g. Net Income for 2014 was $275,000.
Requirements
:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2014.
Question
2: 5% points:
On January 1, 2014, Flip Company purchased 10,000 shares of the stock of Flimsy, and did obtain significant influence.
The investment is intended as a long-term investment.
The stock was purchased for $90,000, and represents a 30% ownership stake.
Flimsy made $25,000 of net income in 2014, and paid dividends of $10,000.
The price of Flimsy's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year.
Acct221
Page 1 of 9
Requirements
:
a.
Prepare the January 1 & December 31 general journal entries for Flip Company.
b.
How much should the Flip Company report on the balance sheet for the investment in Flimsy as the end of 2014
Question
3: 10% points
:
The following is selected information from Flimsy Company for the fiscal years ended December 31, 2014: Flimsy Company had net income of $1,225,000.
Depreciation was $500,000, purchases of plant assets were $1,250,000, and disposals of plant assets for $500,000 resulted in a $50,000 gain.
Stock was issued in exchange for an outstanding note payable of $725,000.
Accounts receivable decreased by $25,000.
Accounts payable decreased by $40,000.
Dividends of $300,000 were paid to shareholders.
Flimsy Company had interest expense of $50,000. Cash balance on January 1, 2014 was $250,000.
Requirements
:
Prepare Flimsy Company's statement.
Acct 221 Principles of Accounting IIThere are 27 questions in thi.docxrhetttrevannion
Acct 221: Principles of Accounting II
There are 27 questions in this exam. Upload the Answer Sheet when you complete the exam.
For this exam,
omit
all general journal entry
explanations.
Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:
Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy,
and did obtain significant influence
. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
Prepare the January 1 and December 31 general journal entries for Baker Company.
How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
On December 15, Murphy split common stock 2 shares for 1.
Net Income for 2016 was $275,000.
Requirements:
Prepare journal entries for the transactions listed above.
Prepa.
Acct 221Final Exam
Student Name:
Question 1: 30 points
a. General Journal Entries
Date
Account
Debit
Credit
b. Partial Classified Balance Sheet
Question 2: 5 points
a. General Journal Entries
Date
Account
Debit
Credit
b. Stock Investments Accounts Balance 12/31/14:
Question 3: 10 points
Question 4: 15 points
Date
Account
Debit
Credit
Question 5: 10 points
a.1.
Breakeven Sales Dollars
a.2.
Breakeven Units
b.1.
Breakeven Sales Dollars
b.2.
Breakeven Units
Question 6: 5 points
Question 7: 6 points
Produce
Buy
Question 1 (30 points)
QUESTION 1A
On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
The following events occurred during 2015 and were not recorded:
a On January 1, Raleigh Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share.
Stock dividends were distributed on January 31 to shareholders as of January 25.
c. On February 15, Raleigh reacquired 1,000 shares of common stock for $20 each.
d. On March 31, Raleigh reissued 250 shares of treasury stock for $25 each.
e. On July 1, Raleigh reissued 500 shares of treasury stock for $16 each.
f. On October 1, Raleigh declared full year dividends for preferred stock (see outstanding shares in table above).
g. Then, paid preferred shareholders on October 15
h. On October 1, Raleigh also declared $1.50 cash dividends for the 104,750 remaining common outstanding shares.
i. Then, paid common shareholders on October 15.
j. On December 15, Raleigh split common stock 2 shares for 1.
QUESTION 1B
Given below is information for the Stockholder Equity section of Jones Balance Sheet as of December, 2014
b 8% Preferred stock, $100 par value, 10,000 shares authorized, 5,000 shares issued and outstanding.
c Common stock, no par, $2 stated value, 500,000 shares authorized, 204,000 shares issued and outstanding
d Additional paid-in capital:
Preferred stock in excess of par value is $34,000
Common stock in excess of stated value is $437,000
Requirements: Prepare a Stockholders' section of Jones classified balance sheet as of December 31, 2014.
Question 2 (5 points)
On January 1, 2016, XYZ Company purchased.
Omit all general journal entry explanations.Be sure to include cor.docxcherishwinsland
Omit all general journal entry explanations.Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a. Prepare the January 1 and December 31 general journal entries for Baker Company.
b. How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a. On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b. On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c. On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d. On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e. On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f. On December 15, Murphy split common stock 2 shares for 1.
g. Net Income for 2016 was $275,000.
Requirements:
a. Prepare journal entries for the transactions listed above.
b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
c.
Question 4 (14 points)
4A. Janu.
Problem 1 (10 Points)Jackson Browne Corporation is authorized to.docxLacieKlineeb
Problem 1 (10 Points)
Jackson Browne Corporation is authorized to issue 1,000,000 shares of $1 par value common stock. During 2021, its first year of operation, the company has the following stock transactions.
Jan. 1 Paid the state $10,000 for incorporation fees.
Jan. 15 Issued 400,000 shares of stock at $5 per share.
July 2 Issued 110,000 shares of stock for land. The land had an asking price of $800,000. The stock is currently selling on a national exchange at $6 per share.
Sept. 5 Purchased 12,000 shares of common stock for the treasury at $7 per share.
Dec. 6 Sold 8,000 shares of the treasury stock at $10 per share.
Instructions
Indicate the accounts and their respective balances that are increased and/or decreased in the above transactions for Jackson Browne Corporation.
You must show your computations to receive full credit.
Problem 2 (12 Points)
The following items were shown on the balance sheet of ELO Corporation on December 31, 2021:
Stockholders’ equity
Paid-in capital
Capital stock
Common stock, $6 par value, 800,000 shares
authorized; ______ shares issued and ______ outstanding $3,000,000
Additional paid-in capital
In excess of par
1,500,000
Total paid-in capital 4,500,000
Retained earnings
1,850,000
Total paid-in capital and retained earnings 6,350,000
Less: Treasury stock (10,000 shares)
50,000
Total stockholders’ equity
$6,300,000
Instructions
Complete the following statements and
show your computations.
(a) The number of shares of common stock issued was _______________.
(b) The number of shares of common stock outstanding was ____________.
(c) The total sales price of the common stock when issued was $____________.
(d) The cost per share of the treasury stock was $_______________.
(e) The average issue price of the common stock was $______________.
(f) Assuming that 25% of the treasury stock is sold at $8 per share, the balance in the Treasury Stock account would be $_______________.
Problem 3 (10 Points)
Journey Company had the following transactions involving notes payable.
October 1, 2021 Borrows $300,000 from Washington State Bank by signing a 6-month, 4% note.
Dec. 31, 2021 prepares the adjusting entry.
April 1, 2022 Pays principal and interest to Washington State Bank.
Instructions
Indicate the accounts and their respective balances that are increased and/or decreased for each of the above transactions.
You must show all your calculations to receive full credit.
Problem 4 (18 Points)
Turner Inc. is considering two alternatives to finance its construction of a new $6 million plant.
(a) Issuance of 600,000 shares of common stock at the market price of $10 per share.
(b) Issuance of $6 million, 4% bonds at par.
Instructions
Complete the following table.
You MUST show your work to receive full credit.
Issue StockIssue Bond.
Omit all general journal entry explanations.Be sure to include c.docxIlonaThornburg83
Omit all general journal entry
explanations.
Be sure to include correct dollar signs, underlines and double underlines.
Question 1 (15 points) Statement of Cash Flows
The following is selected information from Murphy Company for the fiscal years ended December 31, 2015: Murphy Company had net income of $500,000. Depreciation was $50,000, purchases of plant assets were $ 250,000, and disposals of plant assets for $500,000 resulted in a $20,000 gain. Stock was issued in exchange for an outstanding note payable of $925,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $10,000. Dividends of $200,000 were paid to shareholders. Murphy Company had interest expense of $5,000. Cash balance on January 1, 2015 was $250,000.
Requirements:Prepare Murphy Company's statement of cash flows for the year ended December 31, 2015 using the indirect method.
Hint (recall the 3 sections)
Question 2 (10 points)
On January 1, 2015, Baker Company purchased 10,000 shares of the stock of Murphy,
and did obtain significant influence
. The investment is intended as a long-term investment. The stock was purchased for $70,000, and represents a 25% ownership stake. Murphy made $20,000 of net income in 2015, and paid dividends of $10,000. The price of Murphy's stock increased from $20 per share at the beginning of the year, to $22 per share at the end of the year.
Requirements:
a.
Prepare the January 1 and December 31 general journal entries for Baker Company.
b.
How much should the Baker Company report on the balance sheet for the investment in Murphy at the end of 2015?
Question 3 (20 Points)
On December 31, 2016, Murphy Inc. had the following balances (all balances are normal):
Accounts
Amount
Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding)
$1,000,000
Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding)
$1,000,000
Paid-in Capital in Excess of par, Common
150,000
Retained Earnings
700,000
The following events occurred during 2016 and were not recorded:
a.
On January 1, Murphy declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25.
b.
On February 15, Murphy re-acquired 1,000 shares of common stock for $20 each.
c.
On March 31, Murphy reissued 250 shares of treasury stock for $25 each.
d.
On July 1, Murphy reissued 500 shares of treasury stock for $16 each.
e.
On October 1, Murphy declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15.
f.
On December 15, Murphy split common stock 2 shares for 1.
g.
Net Income for 2016 was $275,000.
Requirements:
a.
Prepare journal entries for the transactions listed above.
b.
Prepare a Stockholders' section of a classified balance sheet as of December 31, 2016.
Question 4 (14 poi.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Welcome to TechSoup New Member Orientation and Q&A (May 2024).pdfTechSoup
In this webinar you will learn how your organization can access TechSoup's wide variety of product discount and donation programs. From hardware to software, we'll give you a tour of the tools available to help your nonprofit with productivity, collaboration, financial management, donor tracking, security, and more.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
1. ACC 304 Final Exam Part 1 (3 Sets)
For more classes visit
www.snaptutorial.com
This Tutorial contains 3 Set of Finals
ACC 304 Final Exam Part 1 (3 Sets) 1
1) Swing High Inc. offers its 100 employees to participate in an
employee share-purchase plan. Under the terms of plan, employees are
entitled to purchase 10 shares at 10% discount. The par values of shares
were $10. Overall, 60 employees accepted the offer and each employee
purchased six shares. The market price on purchase date was $100.
What is the compensation expense recorded by Swing High Inc.?
2) The interest rate written in the terms of the bond indenture is
known as the
3) Which of the following methods of amortization is normally used
for intangible assets?
4) If bonds are initially sold at a discount and the straight-line method
of amortization is used, interest expense in the earlier years will
2. 5) The distribution of stock rights to existing common stockholders
will increase paid-in capital at the
6) Treasury shares are shares
7) Which of the following is a contract-related intangible assets?
8) Which of the following taxes does not represent a common
employee payroll deduction?
9) On January 1, 2014, Ellison Co. issued eight-year bonds with a
face value of $4,000,000 and a stated interest rate of 6%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 8%. Table values are:
Present value of 1 for 8 periods at 6% .627
Present value of 1 for 8 periods at 8% .540
Present value of 1 for 16 periods at 3% .623
Present value of 1 for 16 periods at 4% .534
Present value of annuity for 8 periods at 6%
6.210
Present value of annuity for 8 periods at 8%
5.747
Present value of annuity for 16 periods at 3%
12.561
Present value of annuity for 16 periods at 4%
11.652
The present value of the interest is
10) Which of the following would be considered research and
development costs?
11) On January 1, 2015, Evans Company granted Tim Telfer, an
employee, an option to buy 3,000 shares of Evans Co. stock for $25 per
3. share, the option exercisable for 5 years from date of grant. Using a fair
value option pricing model, total compensation expense is determined to
be $22,500. Telfer exercised his option on September 1, 2015, and sold
his 1,000 shares on December 1, 2015. Quoted market prices of Evans
Co. stock during 2015 were
January 1 $25 per share
September 1 $30 per share
December 1 $34 per share
The service period is for three years beginning January 1, 2015. As a
result of the option granted to Telfer, using the fair value method, Evans
should recognize compensation expense for 2015 on its books in the
amount of
12) Presented below is information related to Hale Corporation:
Common Stock, $1 par $4,500,000
Paid-in Capital in Excess of Par―Common Stock 550,000
Preferred 8 1/2% Stock, $50 par 2,000,000
Paid-in Capital in Excess of Par―Preferred Stock 400,000
Retained Earnings 1,500,000
Treasury Common Stock (at cost) 150,000
The total paid-in capital (cash collected) related to the common stock is
13) On October 1, 2014 Macklin Corporation issued 5%, 10-year bonds
with a face value of $4,000,000 at 104. Interest is paid on October 1 and
April 1, with any premiums or discounts amortized on a straight-line
basis.
Bond interest expense reported on the December 31, 2014 income
statement of Macklin Corporation would be
14) Gannon Company acquired 10,000 shares of its own common stock
at $20 per share on February 5, 2014, and sold 5,000 of these shares at
$27 per share on August 9, 2015. The fair value of Gannon's common
stock was $24 per share at December 31, 2014, and $25 per share at
4. December 31, 2015. The cost method is used to record treasury stock
transactions. What account(s) should Gannon credit in 2015 to record
the sale of 5,000 shares?
15) When computing diluted earnings per share, convertible bonds are
16) Jeff Corporation purchased a limited-life intangible asset for
$225,000 on May 1, 2013. It has a useful life of 10 years. What total
amount of amortization expense should have been recorded on the
intangible asset by December 31, 2015?
17) A corporation called an outstanding bond obligation four years
before maturity. At that time there was an unamortized discount of
$750,000. To extinguish this debt, the company had to pay a call
premium of $250,000.Ignoring income tax considerations, how should
these amounts be treated for accounting purposes?
18) Slack Inc. borrowed $320,000 on April 1. The note requires interest
at 12% and principal to be paid in one year. How much interest is
recognized for the period from April 1 to December 31?
19) Venible newspapers sold 6,000 of annual subscriptions at $125 each
on June 1. How much unearned revenue will exist as of December 31?
20) Hanson Co. had 200,000 shares of common stock, 20,000 shares of
convertible preferred stock, and $1,000,000 of 5% convertible bonds
outstanding during 2015. The preferred stock is convertible into 40,000
shares of common stock. During 2015, Hanson paid dividends of $.60
per share on the common stock and $2 per share on the preferred stock.
Each $1,000 bond is convertible into 45 shares of common stock. The
net income for 2015 was $400,000 and the income tax rate was 30%.
5. Basic earnings per share for 2015 is (rounded to the nearest penny)
21) Sealy Corporation had the following information in its financial
statements for the years ended 2014 and 2015:
Cash dividends for the year 2015 $5,000
Net income for the year ended 2015 87,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
Common stockholders' equity, 12/31/14 1,000,000
Common stockholders' equity, 12/31/15 1,200,000
Outstanding shares, 12/31/15 100,000
Preferred dividends for the year ended 2015 10,000
What is the payout ratio for Sealy Corporation for the year ended 2015?
22) Jenks Corporation acquired Linebrink Products on January 1, 2015
for $8,000,000, and recorded goodwill of $1,500,000 as a result of that
purchase. At December 31, 2015, Linebrink Products had a fair value of
$6,800,000. The net identifiable assets of the Linebrink (excluding
goodwill) had a fair value of $5,800,000 at that time. What amount of
loss on impairment of goodwill should Jenks record in 2015?
23) On December 31, 2014, the stockholders' equity section of Arndt,
Inc., was as follows:
Common stock, par value $10; authorized 30,000 shares;
issued and outstanding 9,000 shares $90,000
Additional paid-in capital 116,000
Retained earnings 184,000
Total stockholders' equity $390,000
6. On March 31, 2015, Arndt declared a 10% stock dividend, and
accordingly 900 additional shares were issued, when the fair value of the
stock was $18 per share. For the three months ended March 31, 2015,
Arndt sustained a net loss of $32,000. The balance of Arndt’s retained
earnings as of March 31, 2015, should be
24) On September 1, 2014, Halley Co. issued a note payable to Fidelity
Bank in the amount of $1,800,000, bearing interest at 10%, and payable
in three equal annual principal payments of $600,000. On this date, the
bank's prime rate was 11%. The first payment for interest and principal
was made on September 1, 2015. At December 31, 2015, Halley should
record accrued interest payable of
ACC 304 Final Exam Part 1 (3 Sets) 2
1) We have also attached download of Chapter 12, 13, 14, 15, 16
(download it from my account section)
Please use those as well for your finals and please either use the question
number or some data from question to search as they usually change the
company keeping the data same
2) Convertible bonds
3) Litke Corporation issued at a premium of $5,000 a $100,000 bond
issue convertible into 2,000 shares of common stock (par value $20). At
the time of the conversion, the unamortized premium is $2,000, the
market value of the bonds is $110,000,and the stock is quoted on the
market at $60 per share. If the bonds are converted into common, what is
the amount of paid-in capital in excess of par to be recorded on the
conversion of the bonds?
7. 4) Didde Co. had 300,000 shares of common stock issued and
outstanding at December 31, 2014. No common stock was issued during
2015. On January 1, 2015, Didde issued 200,000 shares of
nonconvertible preferred stock. During 2015, Didde declared and paid
$75,000 cash dividends on the common stock and $60,000 on the
preferred stock. Net income for the year ended December 31, 2015 was
$465,000. What should be Didde's 2015 earnings per common share?
5) Weiser Corp. on January 1, 2012, granted stock options for 40,000
shares of its $10 par value common stock to its key employees. The
market price of the common stock on that date was $23 per share and the
option price was $20. The Black-Scholes option pricing model
determines total compensation expense to be $420,000.The options are
exercisable beginning January 1, 2015, provided those key employees
are still in Weiser’s employ at the time the options are exercised. The
options expire on January 1, 2016.
On January 1, 2015, when the market price of the stock was $29 per
share, all 40,000 options were exercised. The amount of compensation
expense Weiser should record for 2015 under the fair value method is
6) Carr Corporation retires its $300,000 face value bonds at 105 on
January 1, following the payment of interest. The carrying value of the
bonds at the redemption date is $311,235. The entry to record the
redemption will include a
7) On October 1, 2014 Macklin Corporation issued 5%, 10-year
bonds with a face value of $4,000,000 at 104. Interest is paid on October
1 and April 1, with any premiums or discounts amortized on a straight-
line basis.
The entry to record the issuance of the bonds would include a credit of
8) Farmer Company issues $25,000,000 of 10-year, 9% bonds on
March 1, 2014 at 97 plus accrued interest. The bonds are dated January
8. 1, 2014, and pay interest on June 30 and December 31. What is the total
cash received on the issue date?
9) On its December 31, 2014 balance sheet, Emig Corp. reported
bonds payable of $3,000,000 and related unamortized bond issue costs
of $160,000. The bonds had been issued at par. On January 2, 2015,
Emig retired $1,500,000 of the outstanding bonds at par plus a call
premium of $35,000. What amount should Emig report in its 2015
income statement as loss on extinguishment of debt (ignore taxes)?
10) Feller Company issues $15,000,000 of 10-year, 9% bonds on March
1, 2014 at 97 plus accrued interest. The bonds are dated January 1, 2014,
and pay interest on June 30 and December 31. What is the total cash
received on the issue date?
11) Where is debt callable by the creditor reported on the debtor's
financial statements?
12) Sawyer Company self-insures its property for fire and storm
damage. If the company were to obtain insurance on the property, it
would cost them $1,500,000 per year. The company estimates that on
average it will incur losses of $1,200,000 per year. During 2014,
$525,000 worth of losses were sustained. How much total expense
and/or loss should be recognized by Sawyer Company for 2014?
13) A liability for compensated absences such as vacations, for which it
is expected that employees will be paid, should
9. 14) On September 1, Horton purchased $13,300 of inventory items on
credit with the terms 1/15, net 30, FOB destination. Freight charges were
$280. Payment for the purchase was made on September 18. Assuming
Horton uses the perpetual inventory system and the net method of
accounting for purchase discounts, what amount is recorded as inventory
from this purchase?
15) What is a discount as it relates to zero-interest-bearing notes
payable?
16) Which of the following legal fees should be capitalized?
17) Which of the following costs of goodwill should be amortized over
their estimated useful lives?
18) MaBelle Corporation incurred the following costs in 2015:
Acquisition of R&D equipment with a useful life of 4 years in R&D
projects $800,000
Start-up costs incurred when opening a new plant 140,000
Advertising expense to introduce a new product 700,000
Engineering costs incurred to advance a product to full production stage
500,000
What amount should MaBelle record as research & development
expense in 2015?
19) Jenks Corporation acquired Linebrink Products on January 1, 2015
for $8,000,000, and recorded goodwill of $1,500,000 as a result of that
purchase. At December 31, 2015, Linebrink Products had a fair value of
$6,800,000. The net identifiable assets of the Linebrink (excluding
goodwill) had a fair value of $5,800,000 at that time. What amount of
loss on impairment of goodwill should Jenks record in 2015?
20) The general ledger of Vance Corporation as of December 31, 2015,
includes the following accounts:
Copyrights $30,000
10. Deposits with advertising agency (will be used to promote goodwill)
27,000
Discount on bonds payable 70,000
Excess of cost over fair value of identifiable net assets of Acquired
subsidiary 480,000
Trademarks 90,000
In the preparation of Vance's balance sheet as of December 31, 2015,
what should be reported as total intangible assets?
21) Sealy Corporation had the following information in its financial
statements for the years ended 2014 and 2015:
Cash dividends for the year 2015 $5,000
Net income for the year ended 2015 87,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
Common stockholders' equity, 12/31/14 1,000,000
Common stockholders' equity, 12/31/15 1,200,000
Outstanding shares, 12/31/15 100,000
Preferred dividends for the year ended 2015 10,000
What is the rate of return on common stock equity for Sealy Corporation
for the year ended 2015?
22) An entry is not made on the
23) The issuer of a 5% common stock dividend to common
stockholders should transfer from retained earnings to paid-in capital an
amount equal to the
24) Layne Corporation had the following information in its financial
statements for the years ended 2014 and 2015:
Cash dividends for the year 2015 $10,000
Net income for the year ended 2015 83,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
11. Common stockholders' equity, 12/31/14 1,600,000
Common stockholders' equity, 12/31/15 1,980,000
Outstanding shares, 12/31/15 180,000
Preferred dividends for the year ended 2015 15,000
What is the book value per share for Layne Corporation for the year
ended 2015?
25) The pre-emptive right of a common stockholder is the right to
ACC 304 Final Exam Part 1 (3 Sets)
1) Swing High Inc. offers its 100 employees to participate in an
employee share-purchase plan. Under the terms of plan, employees are
entitled to purchase 10 shares at 10% discount. The par values of shares
were $10. Overall, 60 employees accepted the offer and each employee
purchased six shares. The market price on purchase date was $100.
2) Didde Co. had 300,000 shares of common stock issued and
outstanding at December 31, 2014. No common stock was issued during
2015. On January 1, 2015, Didde issued 200,000 shares of
nonconvertible preferred stock. During 2015, Didde declared and paid
$75,000 cash dividends on the common stock and $60,000 on the
preferred stock. Net income for the year ended December 31, 2015 was
$465,000. What should be Didde's 2015 earnings per common share?
3) When convertible debt is retired by the issuer, any material
difference between the cash acquisition price and the carrying amount of
the debt should be
12. 4) On July 1, 2014, an interest payment date, $90,000 of Parks Co.
bonds were converted into 1,800 shares of Parks Co. common stock each
having a par value of $45 and a market value of $54. There is $3,600
unamortized discount on the bonds. Using the book value method, Parks
would record
5) Convertible bonds
6) Paige Co. took advantage of market conditions to refund debt. This
was the fourth refunding operation carried out by Paige within the last
three years. The excess of the carrying amount of the old debt over the
amount paid to extinguish it should be reported as a
7) Under the effective-interest method of bond discount or premium
amortization, the periodic interest expense is equal to
8) When a business enterprise enters into what is referred to as off-
balance-sheet financing, the company
9) When the interest payment dates of a bond are May 1 and
November 1, and a bond issue is sold on June 1, the amount of cash
received by the issuer will be
10) On October 1, 2014 Macklin Corporation issued 5%, 10-year bonds
with a face value of $4,000,000 at 104. Interest is paid on October 1 and
April 1, with any premiums or discounts amortized on a straight-line
basis.
11) Which of the following taxes does not represent a common
employee payroll deduction?
12) Which of the following is an example of a contingent liability?
13) Sawyer Company self-insures its property for fire and storm
damage. If the company were to obtain insurance on the property, it
13. would cost them $1,500,000 per year. The company estimates that on
average it will incur losses of $1,200,000 per year. During 2014,
$525,000 worth of losses were sustained. How much total expense
and/or loss should be recognized by Sawyer Company for 2014?
14) Greeson Corp. signed a three-month, zero-interest-bearing note on
November 1, 2014 for the purchase of $250,000 of inventory. The face
value of the note was $253,900.Greeson used a "Discount on Note
Payable" account to initially record the note. Assuming that the discount
will be amortized equally over the 3-month period and that there was no
adjusting entry made for November, the adjusting entry made at
December 31, 2012 will include a
15) Presented below is information available for Marley Company.
Current Assets
Cash $ 4,000
Short-term investments 65,000
Accounts receivable 61,000
Inventories 110,000
Prepaid expenses 30,000
Total current assets $ 270,000
16) In accounting for internally generated intangible assets, U.S. GAAP
requires that
17) One factor that is not considered in determining the useful life of an
intangible asset is
18) In 2015, Edwards Corporation incurred research and development
costs as follows:
Materials and equipment $110,000
Personnel 130,000
Indirect costs 150,000
$390,000
14. These costs relate to a product that will be marketed in 2016. It is
estimated that these costs will be recouped by December 31, 2018. The
equipment has no alternative future use. What is the amount of research
and development costs that should be expensed in 2015?
19) The carrying value of an intangible is
20) Under current accounting practice, intangible assets are classified as
21) The statement of changes in equity has columns for each of the
following except:
22) The pre-emptive right of a common stockholder is the right to
23) Total stockholders' equity represents
24) The issuer of a 5% common stock dividend to common
stockholders should transfer from retained earnings to paid-in capital an
amount equal to the
25) Which of the following features of preferred stock makes it more
like a debt than an equity instrument?
**************************************************
ACC 304 Final Exam Part 2 (2 Sets)
15. For more classes visit
www.snaptutorial.com
ACC 304 Final Exam Part 2 (2 Sets) 1
1) On January 1, 2015, Piper Co. issued ten-year bonds with a face
value of $3,000,000 and a stated interest rate of 10%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 12%. Table values are:
Present value of 1 for 10 periods at 10% .386
Present value of 1 for 10 periods at 12% .322
Present value of 1 for 20 periods at 5% .377
Present value of 1 for 20 periods at 6% .312
Present value of annuity for 10 periods at 10% 6.145
Present value of annuity for 10 periods at 12% 5.650
Present value of annuity for 20 periods at 5% 12.462
Present value of annuity for 20 periods at 6% 11.470
2) Without prejudice to your solution in part (a), assume that the
issue price was $2,652,000.Prepare the amortization table for 2015,
assuming that amortization is recorded on interest payment dates using
the effective-interest method.
3) The following information pertains to Parsons Co.:
Preferred stock, cumulative:
Par value per share $100
Dividend rate 8%
Shares outstanding 9,000
Dividends in arrears none
16. Common stock:
Par value per share $10
Shares issued 100,000
Dividends paid per share $2.00
Market price per share $47
Additional paid-in capital $480,000
Unappropriated retained earnings (after closing) $250,000
Retained earnings appropriated for contingencies $280,000
Common treasury stock:
Number of shares 9,000
Total cost $240,000
Net income $610,000
Compute (assume no changes in balances during the past year): (Round
per share and ratios to 2 decimal places, e.g. $15.75 or 15.75%.)
(a) Total amount of stockholders' equity in the balance sheet
$
(b) Earnings per share of common stock $
per share
(c) Book value per share of common stock $
per share
(d) Payout ratio of common stock
%
(e) Return on common stock equity
%
4) Sisco Co. purchased a patent from Thornton Co. for $620,000 on
July 1, 2012. Expenditures of $119,000 for successful litigation in
defense of the patent were paid on July 1, 2015. Sisco estimates that the
useful life of the patent will be 20 years from the date of acquisition.
Prepare a computation of the carrying value of the patent at
December 31, 2015.
17. 5) On August 31, Latty Co. partially refunded $401,000 of its
outstanding 10% note payable made one year ago to Dugan State Bank
by paying $401,000 plus $40,100 interest, having obtained the $441,100
by using $126,240 cash and signing a new one-year $346,000 note
discounted at 9% by the bank.
6) Make the entry to record the partial refunding. Assume Latty Co.
makes reversing entries when appropriate. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
6)
7) Prepare the adjusting entry at December 31, assuming straight-line
amortization of the discount. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
ACC 304 Final Exam Part 2 (2 Sets)
1) The following information pertains to Parsons Co.:
Preferred stock, cumulative:
Par value per share $100
Dividend rate 8%
Shares outstanding 9,000
Dividends in arrears none
Common stock:
Par value per share $10
Shares issued 100,000
Dividends paid per share $2.00
Market price per share $47
Additional paid-in capital $480,000
Unappropriated retained earnings (after closing) $250,000
Retained earnings appropriated for contingencies $280,000
Common treasury stock:
18. Number of shares 9,000
Total cost $240,000
Net income $610,000
Compute (assume no changes in balances during the past year): (Round
per share and ratios to 2 decimal places, e.g. $15.75 or 15.75%.)
(a) Total amount of stockholders' equity in the balance sheet
$
(b) Earnings per share of common stock $
per share
(c) Book value per share of common stock $
per share
(d) Payout ratio of common stock
%
(e) Return on common stock equity
%
2) On January 1, 2015, Piper Co. issued ten-year bonds with a face
value of $3,000,000 and a stated interest rate of 10%, payable
semiannually on June 30 and December 31. The bonds were sold to
yield 12%. Table values are:
Present value of 1 for 10 periods at 10% .386
Present value of 1 for 10 periods at 12% .322
Present value of 1 for 20 periods at 5% .377
Present value of 1 for 20 periods at 6% .312
Present value of annuity for 10 periods at 10% 6.145
Present value of annuity for 10 periods at 12% 5.650
Present value of annuity for 20 periods at 5% 12.462
Present value of annuity for 20 periods at 6% 11.470
3) Calculate the issue price of the bonds.
Issue price of bond
19. 4) Without prejudice to your solution in part (a), assume that the
issue price was $2,652,000.Prepare the amortization table for 2015,
assuming that amortization is recorded on interest payment dates using
the effective-interest method.
5) Sisco Co. purchased a patent from Thornton Co. for $620,000 on
July 1, 2012. Expenditures of $119,000 for successful litigation in
defense of the patent were paid on July 1, 2015. Sisco estimates that the
useful life of the patent will be 20 years from the date of acquisition.
Prepare a computation of the carrying value of the patent at December
31, 2015.
6) On August 31, Latty Co. partially refunded $443,000 of its
outstanding 10% note payable made one year ago to Dugan State Bank
by paying $443,000 plus $44,300 interest, having obtained the $487,300
by using $134,220 cash and signing a new one-year $388,000 note
discounted at 9% by the bank.
7) Make the entry to record the partial refunding. Assume Latty Co.
makes reversing entries when appropriate. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
8) Prepare the adjusting entry at December 31, assuming straight-line
amortization of the discount. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
**************************************************
ACC 304 Week 1 Chapter 8 Homework
20. For more classes visit
www.snaptutorial.com
ACC 304 Week 1 Chapter 8 Homework
1) Matlock Company uses a perpetual inventory system. Its
beginning inventory consists 50 units that cost $34 each. During June ,
(1) the company purchased units at $34 each, (2) returned 6 units for
credit ,and (3) sold 125 unit at $50 each. Journalize the June
transactions.
2) Amsterdam Company uses a periodic inventory system. For April,
When the company sold 600 units, The following information is
available. calculate weighted average cost per unit.
3) Arna, Inc. uses the dollar value LIFO method of computing its
inventory. Data for the past 3 year follow. Compute the value of the
2014 and 2015 inventories using the dollar-value LIFE method.
4) Craig Company asks you to review its December 31, 2014,
inventory values and prepare the necessary adjustments to the book. The
following information is given to u. determine the proper inventory
balance for Craig Company at December 31, 2014.
5) Prepare any correcting entries to adjust inventory to its proper
amount at December 31, 2014. Assume the books have not been closed.
6) The net income per books of Linda Patrick Company was
determined without knowledge of the errors indicated below. Prepare
work sheet to show the adjusted net income figure for each of the 6
years after taking into account the inventory errors.
21. 7) Presented below the information related to Dino Radja Company.
Compute the ending inventory for Dino Radja Company for 2011 throw
2016 using the Dollar value LIFO method.
8) Under IFRS, an entity should initially recognize inventory when
9) With respect to accounting of inventories, which of the following
is a difference that exists for IFRS, as opposed to U.S GAAP?
10) Some of the transactions of Torres Company during August are
listed below. Torres uses the periodic inventory method.
11) Assuming that purchases are recorded at gross amounts and that
discounts are to be recorded when taken: prepare general journal entries
to record the transactions
12) Assuming that purchases are recorded at net amounts and that
discounts lost are treated as financial expenses: prepare general journal
entries to record the transactions
13) Assuming that purchases are recorded at net amounts and that
discounts lost are treated as financial expenses: prepare the adjusting
entry necessary on August 31 if financial statements are to be prepared
at that time.
14) Under IFRS, which of the following would be included in the cost
of inventories?
15) Under IFRS, inventories are classified as
16) Which of the following best describes the IFRS requirement for
applying the same cost formula to all inventories?
**************************************************
ACC 304 Week 2 Chapter 8 Quiz (All Possible
Questions)
22. For more classes visit
www.snaptutorial.com
ACC 304 Week 2 Quiz – Strayer NEW
CHAPTER 8
VALUATION OF INVENTORIES:A COST-BASIS APPROACH
IFRS questions are available at the end of this chapter.
TRUE FALSE—Conceptual
1. A manufacturing concern would report the cost of units only
partially processed as inventory in the balance sheet.
2. Both merchandising and manufacturing companies normally
have multiple inventory accounts.
3. When using a perpetual inventory system, freight charges on
goods purchased are debited to Freight-In.
4. If a supplier ships goods f.o.b. destination, title passes to the
buyer when the supplier delivers the goods to the common carrier.
23. 5. If ending inventory is understated, then net income is
understated.
6. If both purchases and ending inventory are overstated by the
same amount, net income is not affected.
7. Freight charges on goods purchased are considered a period cost
and therefore are not part of the cost of the inventory.
8. Purchase Discounts Lost is a financial expense and is reported in
the “other expenses and losses” section of the income statement.
9. The cost flow assumption adopted must be consistent with the
physical movement of the goods.
10. In all cases when FIFO is used, the cost of goods sold would be
the same whether a perpetual or periodic system is used.
11. The change in the LIFO Reserve from one period to the next is
recorded as an adjustment to Cost of Goods Sold.
12. Many companies use LIFO for both tax and internal reporting
purposes.
13. LIFO liquidation often distorts net income, but usually leads to
substantial tax savings.
24. 14. LIFO liquidations can occur frequently when using a specific-
goods approach.
15. Dollar-value LIFO techniques help protect LIFO layers from
erosion.
16. The dollar-value LIFO method measures any increases and
decreases in a pool in terms of total dollar value and physical quantity of
the goods.
17. A disadvantage of LIFO is that it does not match more recent
costs against current revenues as well as FIFO.
18. The LIFO conformity rule requires that if a company uses LIFO
for tax purposes, it must also use LIFO for financial accounting
purposes.
19. Use of LIFO provides a tax benefit in an industry where unit
costs tend to decrease as production increases.
20. LIFO is inappropriate where unit costs tend to decrease as
production increases.
True False Answers—Conceptual
MULTIPLE CHOICE—Conceptual
25. 21. Which of the following inventories carried by a manufacturer is
similar to the merchandise inventory of a retailer?
a. Raw materials.
b. Work-in-process.
c. Finished goods.
d. Supplies.
22. Where should raw materials be classified on the balance sheet?
a. Prepaid expenses.
b. Inventory.
c. Equipment.
d. Not on the balance sheet.
23. Which of the following accounts is not reported in inventory?
a. Raw materials.
b. Equipment.
c. Finished goods.
d. Supplies.
26. 24. Why are inventories included in the computation of net income?
a. To determine cost of goods sold.
b. To determine sales revenue.
c. To determine merchandise returns.
d. Inventories are not included in the computation of net income.
25. Which of the following is a characteristic of a perpetual
inventory system?
a. Inventory purchases are debited to a Purchases account.
b. Inventory records are not kept for every item.
c. Cost of goods sold is recorded with each sale.
d. Cost of goods sold is determined as the amount of purchases less the
change in inventory.
26. How is a significant amount of consignment inventory reported
in the balance sheet?
a. The inventory is reported separately on the consignor's balance sheet.
b. The inventory is combined with other inventory on the consignor's
balance sheet.
c. The inventory is reported separately on the consignee's balance
sheet.
27. d. The inventory is combined with other inventory on the consignee's
balance sheet.
27. Where should goods in transit that were recently purchased f.o.b.
destination be included on the balance sheet?
a. Accounts payable.
b. Inventory.
c. Equipment.
d. Not on the balance sheet.
28. If a company uses the periodic inventory system, what is the
impact on net income of including goods in transit f.o.b. shipping point
in purchases, but not ending inventory?
a. Overstate net income.
b. Understate net income.
c. No effect on net income.
d. Not sufficient information to determine effect on net income.
29. If a company uses the periodic inventory system, what is the
impact on the current ratio of including goods in transit f.o.b. shipping
point in purchases, but not ending inventory?
a. Overstate the current ratio.
b. Understate the current ratio.
28. c. No effect on the current ratio.
d. Not sufficient information to determine effect on the current ratio.
30. What is consigned inventory?
a. Goods that are shipped, but title transfers to the receiver.
b. Goods that are sold, but payment is not required until the goods are
sold.
c. Goods that are shipped, but title remains with the shipper.
d. Goods that have been segregated for shipment to a customer.
31. When using a perpetual inventory system,
a. no Purchases account is used.
b. a Cost of Goods Sold account is used.
c. two entries are required to record a sale.
d. all of these.
32. Goods in transit which are shipped f.o.b. shipping point should
be
a. included in the inventory of the seller.
29. b. included in the inventory of the buyer.
c. included in the inventory of the shipping company.
d. none of these.
33. Goods in transit which are shipped f.o.b. destination should be
a. included in the inventory of the seller.
b. included in the inventory of the buyer.
c. included in the inventory of the shipping company.
d. none of these.
34. Which of the following items should be included in a company's
inventory at the balance sheet date?
a. Goods in transit which were purchased f.o.b. destination.
b. Goods received from another company for sale on consignment.
c. Goods sold to a customer which are being held for the customer to
call for at his or her convenience.
d. None of these.
Use the following information for questions 35 and 36.
30. During 2012 Carne Corporation transferred inventory to Nolan
Corporation and agreed to repurchase the merchandise early in 2013.
Nolan then used the inventory as collateral to borrow from Norwalk
Bank, remitting the proceeds to Carne. In 2013 when Carne repurchased
the inventory, Nolan used the proceeds to repay its bank loan.
35. This transaction is known as a(n)
a. consignment.
b. installment sale.
c. assignment for the benefit of creditors.
d. product financing arrangement.
36. On whose books should the cost of the inventory appear at the
December 31, 2012 balance sheet date?
a. Carne Corporation
b. Nolan Corporation
c. Norwalk Bank
d. Nolan Corporation, with Carne making appropriate note disclosure
of the transaction
37. Goods on consignment are
a. included in the consignee's inventory.
31. b. recorded in a Consignment Out account which is an inventory
account.
c. recorded in a Consignment In account which is an inventory account.
d. all of these
S38. Valuation of inventories requires the determination of all of the
following except
a. the costs to be included in inventory.
b. the physical goods to be included in inventory.
c. the cost of goods held on consign-ment from other companies.
d. the cost flow assumption to be adopted.
P39. The accountant for the Pryor Sales Company is preparing the
income statement for 2012 and the balance sheet at December 31, 2012.
Pryor uses the periodic inventory system. The January 1, 2012
merchandise inventory balance will appear
a. only as an asset on the balance sheet.
b. only in the cost of goods sold section of the income statement.
c. as a deduction in the cost of goods sold section of the income
statement and as a current asset on the balance sheet.
d. as an addition in the cost of goods sold section of the income
statement and as a current asset on the balance sheet.
32. P40. If the beginning inventory for 2012 is overstated, the effects of
this error on cost of goods sold for 2012, net income for 2012, and assets
at December 31, 2013, respectively, are
a. overstatement, understatement, overstatement.
b. overstatement, understatement, no effect.
c. understatement, overstatement, overstatement.
d. understatement, overstatement, no effect.
S41. The failure to record a purchase of mer-chandise on account
even though the goods are properly included in the physical inven-tory
results in
a. an overstatement of assets and net income.
b. an understatement of assets and net income.
c. an understatement of cost of goods sold and liabilities and an
overstatement of assets.
d. an understatement of liabilities and an overstatement of owners'
equity.
42. Dolan Co. received merchandise on consignment. As of March
31, Dolan had recorded the transaction as a purchase and included the
goods in inventory. The effect of this on its financial statements for
March 31 would be
33. a. no effect.
b. net income was correct and current assets and current liabilities were
overstated.
c. net income, current assets, and current liabilities were overstated.
d. net income and current liabilities were overstated.
43. Green Co. received merchandise on consignment. As of January
31, Green included the goods in inventory, but did not record the
transaction. The effect of this on its financial statements for January 31
would be
a. net income, current assets, and retained earnings were overstated.
b. net income was correct and current assets were understated.
c. net income and current assets were overstated and current liabilities
were understated.
d. net income, current assets, and retained earnings were understated.
44. Feine Co. accepted delivery of merchandise which it purchased
on account. As of December 31, Feine had recorded the transaction, but
did not include the merchandise in its inventory. The effect of this on its
financial statements for December 31 would be
a. net income, current assets, and retained earnings were understated.
b. net income was correct and current assets were understated.
c. net income was understated and current liabilities were overstated.
34. d. net income was overstated and current assets were understated.
45. On June 15, 2012, Wynne Corporation accepted delivery of
merchandise which it pur-chased on account. As of June 30, Wynne had
not recorded the transaction or included the merchandise in its inventory.
The effect of this on its balance sheet for June 30, 2012 would be
a. assets and stockholders' equity were overstated but liabilities were
not affected.
b. stockholders' equity was the only item affected by the omission.
c. assets, liabilities, and stockholders' equity were understated.
d. none of these.
46. What is the effect of a $50,000 overstatement of last year's
inventory on current years ending retained earning balance?
a. Understated by $50,000.
b. No effect.
c. Overstated by $50,000.
d. Need more information to determine.
47. Which of the following is a product cost as it relates to
inventory?
a. Selling costs.
35. Ending Inventory Cost of Goods Sold
a. FIFO FIFO
b. FIFO LIFO
c. LIFO FIFO
d. LIFO LIFO for:
**************************************************
ACC 304 Week 2 Chapter 9 Homework
For more classes visit
www.snaptutorial.com
ACC 304 Week 2 Chapter 9 Homework
1) Floyd Corporation has the following four items in its ending
inventory. Determine the final lower-of-cost-or-market inventory value
for each item.
2) Bell, Inc. buys 1,000 computer game CDs from a distributor who
is disconnecting those games. The purchase price for the lot is
36. $8,000.Bell will group the CDs into three price categories for resale, as
indicated bellow. Determine the cost per CD for each group, using the
relative sales value method.
3) Boyne Inc. had beginning inventory of $12,000 at cost and
$20,000 t retail. Net purchase were $12,000 at cost and $17,000 at retail.
Net markups were $10,000;net markdowns were $7,000; and sales
revenue was $147,000.compute ending inventory at cost using the
conventional retail method.
4) Marvin Gaye Company has been having difficulty obtaining key
raw materials for its manufacturing process. The Company therefore
signed a long-term non cancelable purchase commitment with its largest
supplier of this raw material on November 30, 2014,at an agreed price of
$400,0000.At December 31, 2014, the raw material had declined in
price to $365,000. What entry would you make on December 31, 2014,
to recognize these facts?
5) Tim Legler requires an estimate of the cost of goods loat by fire on
March 9. Merchandise on hand on January 1 was $38,000. Purchases
since January 1 were $72,000; freight-in $3,400; purchases returns and
allowances, $2,400. Sales are made at 33 1/3% above cost and totaled
$100,000 to March 9. Goods coasting $10,900 were left undamaged by
the fire; remaining goods were destroyed. (a). compute the cost goods
destroyed. (b). compute the cost goods destroyed, assuming that the
gross profit 33 1/3% of sales.
6) Presented below is information related to Ricky Henderson
Company. Compute the inventory by the conventional retail inventory
method.
7) The inventory section of Maddox’s balance sheet as of November
30,2014, including required foot notes, is presented below are the
inventory section supporting calculations.
8) All of the following are key similarities between GAAP and IFRS
with respect to accounting for inventories except:
9) Starfish Company (a Company using Gap and LIFO inventory
method) is considering changing to IFRS and the FIFO inventory
method. How would a comparison of these methods affect Starfish’s
financials?
37. 10) Assume that Darcy industry had the following inventory values.
1. Inventory cost (on December 31,2014)$1,500
2. Inventory sales value (on December 31,2014)$1,350
3. Inventory net realizable value (on December 31,2014)$1,320
Under IFRS, what is the inventory carrying value on December 31, 2014
?
11) Under IFRS, agricultural activity results in which of the following
types of assets?
1. Agricultural produce
2. Biological assets
**************************************************
ACC 304 Week 3 Chapter 9 Quiz (All Possible
Questions)
For more classes visit
www.snaptutorial.com
1. A company should abandon the historical cost principle when the
future utility of the inventory item falls below its original cost.
2. The lower-of-cost-or-market method is used for inventory
despite being less conservative than valuing inventory at market value.
38. 3. The purpose of the “floor” in lower-of-cost-or-market
considerations is to avoid overstating inventory.
4. Application of the lower-of-cost-or-market rule results in
inconsistency because a company may value inventory at cost in one
year and at market in the next year.
5. GAAP requires reporting inventory at net realizable value, even
if above cost, whenever there is a controlled market with a quoted price
applicable to all quantities.
6. A reason for valuing inventory at net realizable value is that
sometimes it is too difficult to obtain the cost figures.
7. In a basket purchase, the cost of the individual assets acquired is
determined on the basis of their relative sales value.
8. A basket purchase occurs when a company agrees to buy
inventory weeks or months in advance.
9. Most purchase commitments must be recorded as a liability.
10. If the contract price on a noncancelable purchase commitment
exceeds the market price, the buyer should record any expected losses
on the commitment in the period in which the market decline takes
place.
11. When a buyer enters into a formal, noncancelable purchase
contract, an asset and a liability are recorded at the inception of the
contract.
12. The gross profit method can be used to approximate the dollar
amount of inventory on hand.
39. 13. In most situations, the gross profit percentage is stated as a
percentage of cost.
14. A disadvantage of the gross profit method is that it uses past
percentages in determining the markup.
15. When the conventional retail method includes both net markups
and net markdowns in the cost-to-retail ratio, it approximates a lower-of-
cost-or-market valuation.
16. In the retail inventory method, the term markup means a markup
on the original cost of an inventory item.
17. In the retail inventory method, abnormal shortages are deducted
from both the cost and retail amounts and reported as a loss.
18. The inventory turnover ratio is computed by dividing the cost of
goods sold by the ending inventory on hand.
19. The average days to sell inventory represents the average number
of days’ sales for which a company has inventory on hand.
*20. The LIFO retail method assumes that markups and markdowns
apply only to the goods purchased during the period.
True False Answers—Conceptual
MULTIPLE CHOICE—Conceptual
21. Which of the following is true about lower-of-cost-or-market?
a. It is inconsistent because losses are recognized but not gains.
40. b. It usually understates assets.
c. It can increase future income.
d. All of these.
22. The primary basis of accounting for inventories is cost. A
departure from the cost basis of pricing the inventory is required where
there is evidence that when the goods are sold in the ordinary course of
business their
a. selling price will be less than their replacement cost.
b. replacement cost will be more than their net realizable value.
c. cost will be less than their replacement cost.
d. future utility will be less than their cost.
23. When valuing raw materials inventory at lower-of-cost-or-
market, what is the meaning of the term "market"?
a. Net realizable value
b. Net realizable value less a normal profit margin
c. Current replacement cost
d. Discounted present value
24. In no case can "market" in the lower-of-cost-or-market rule be
more than
41. a. estimated selling price in the ordinary course of business.
b. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal.
c. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal and an
allowance for an approximately normal profit margin.
d. estimated selling price in the ordinary course of business less
reasonably predictable costs of completion and disposal, an allowance
for an approximately normal profit margin, and an adequate reserve for
possible future losses.
25. Designated market value
a. is always the middle value of replacement cost, net realizable value,
and net realizable value less a normal profit margin.
b. should always be equal to net realizable value.
c. may sometimes exceed net realizable value.
d. should always be equal to net realizable value less a normal profit
margin.
26. Lower-of-cost-or-market
a. is most conservative if applied to the total inventory.
b. is most conservative if applied to major categories of inventory.
c. is most conservative if applied to individual items of inventory.
42. d. must be applied to major categories for taxes.
27. An item of inventory purchased this period for $15.00 has been
incorrectly written down to its current replacement cost of $10.00. It
sells during the following period for $30.00, its normal selling price,
with disposal costs of $3.00 and normal profit of $12.00. Which of the
following statements is not true?
a. The cost of sales of the following year will be understated.
b. The current year's income is understated.
c. The closing inventory of the current year is understated.
d. Income of the following year will be understated.
S28. When the cost-of-goods-sold method is used to record inventory
at market
a. there is a direct reduction in the selling price of the product that
results in a loss being recorded on the income statement prior to the sale.
b. a loss is recorded directly in the inventory account by crediting
inventory and debiting loss on inventory decline.
c. only the portion of the loss attributable to inventory sold during the
period is recorded in the financial statements.
d. the market value figure for ending inventory is substituted for cost
and the loss is buried in cost of goods sold.
43. 29. Lower-of-cost-or-market as it applies to inventory is best
described as the
a. drop of future utility below its original cost.
b. method of determining cost of goods sold.
c. assumption to determine inventory flow.
d. change in inventory value to market value.
30. The floor to be used in applying the lower-of-cost-or-market
method to inventory is determined as the
a. net realizable value.
b. net realizable value less normal profit margin.
c. replacement cost.
d. selling price less costs of completion and disposal.
31. What is the rationale behind the ceiling when applying the lower-
of-cost-or-market method to inventory?
a. Prevents understatement of the inventory value.
b. Allows for a normal profit to be earned.
c. Allows for items to be valued at replacement cost.
d. Prevents overstatement of the value of obsolete or damaged
inventories.
44. 32. Why are inventories stated at lower-of-cost-or-market?
a. To report a loss when there is a decrease in the future utility.
b. To be conservative.
c. To report a loss when there is a decrease in the future utility below
the original cost.
d. To permit future profits to be recognized.
33. Which of the following is not an acceptable approach in applying
the lower-of-cost-or-market method to inventory?
a. Inventory location.
b. Categories of inventory items.
c. Individual item.
d. Total of the inventory.
34. Which method(s) may be used to record a loss due to a price
decline in the value of inventory?
a. Cost-of-goods-sold.
b. Sales method.
c. Loss method
45. d. Both a and c.
35. Why might inventory be reported at sales prices (net realizable
value or market price) rather than cost?
a. When there is a controlled market with a quoted price applicable to
all quantities and when there are no significant costs of disposal.
b. When there are no significant costs of disposal.
c. When a non-cancellable contract exists to sell the inventory.
d. When there is a controlled market with a quoted price applicable to
all quantities.
S36. Recording inventory at net realizable value is permitted, even if
it is above cost, when there are no significant costs of disposal involved
and
a. the ending inventory is determined by a physical inventory count.
b. a normal profit is not anticipated.
c. there is a controlled market with a quoted price applicable to all
quantities.
d. the internal revenue service is assured that the practice is not used
only to distort reported net income.
37. When inventory declines in value below original (historical) cost,
and this decline is considered other than temporary, what is the
maximum amount that the inventory can be valued at?
46. a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
38. Net realizable value is
a. acquisition cost plus costs to complete and sell.
b. selling price.
c. selling price plus costs to complete and sell.
d. selling price less costs to complete and sell.
39. If a unit of inventory has declined in value below original cost,
but the market value exceeds net realizable value, the amount to be used
for purposes of inventory valuation is
a. net realizable value.
b. original cost.
c. market value.
d. net realizable value less a normal profit margin.
40. Inventory may be recorded at net realizable value if
47. a. there is a controlled market with a quoted price.
b. there are no significant costs of disposal.
c. the inventory consists of precious metals or agricultural products.
d. all of these.
41. If a material amount of inventory has been ordered through a
formal purchase contract at the balance sheet date for future delivery at
firm prices,
a. this fact must be disclosed.
b. disclosure is required only if prices have declined since the date of
the order.
c. disclosure is required only if prices have since risen substantially.
d. an appropriation of retained earnings is necessary.
42. The credit balance that arises when a net loss on a purchase
commitment is recognized should be
a. presented as a current liability.
b. subtracted from ending inventory.
c. presented as an appropriation of retained earnings.
d. presented in the income statement.
48. P43. In 2012, Orear Manufacturing signed a contract with a supplier
to purchase raw materials in 2013 for $700,000. Before the December
31, 2012 balance sheet date, the market price for these materials dropped
to $510,000. The journal entry to record this situation at December 31,
2012 will result in a credit that should be reported
a. as a valuation account to Inventory on the balance sheet.
b. as a current liability.
c. as an appropriation of retained earnings.
d. on the income statement.
44. At the end of the fiscal year, Apha Airlines has an outstanding
non-cancellable purchase commitment for the purchase of 1 million
gallons of jet fuel at a price of $4.10 per gallon for delivery during the
coming summer. The company prices its inventory at the lower of cost
or market. If the market price for jet fuel at the end of the year is $4.50,
how would this situation be reflected in the annual financial statements?
a. Record unrealized gains of $400,000 and disclose the existence of
the purchase commitment.
b. No impact.
c. Record unrealized losses of $400,000 and disclose the existence of
the purchase commitment.
d. Disclose the existence of the purchase commitment.
45. At the end of the fiscal year, Apha Airlines has an outstanding
purchase commitment for the purchase of 1 million gallons of jet fuel at
a price of $4.60 per gallon for delivery during the coming summer. The
49. company prices its inventory at the lower of cost or market. If the
market price for jet fuel at the end of the year is $4.25, how would this
situation be reflected in the annual financial statements?
a. Record unrealized gains of $350,000 and disclose the existence of
the purchase commitment.
b. No impact.
c. Record unrealized losses of $350,000 and disclose the existence of
the purchase commitment.
d. Disclose the existence of the purchase commitment.
46. How is the gross profit method used as it relates to inventory
valuation?
a. Verify the accuracy of the perpetual inventory records.
b. Verity the accuracy of the physical inventory.
c. To estimate cost of goods sold.
d. To provide an inventory value of LIFO inventories.
S47. Which of the following is not a basic assumption of the gross
profit method?
a. The beginning inventory plus the purchases equal total goods to be
accounted for.
b. Goods not sold must be on hand.
50. c. If the sales, reduced to the cost basis, are deducted from the sum of
the opening inventory plus purchases, the result is the amount of
inventory on hand.
d. The total amount of purchases and the total amount of sales remain
relatively unchanged from the comparable previous period.
48. The gross profit method of inventory valuation is invalid when
a. a portion of the inventory is destroyed.
b. there is a substantial increase in inventory during the year.
c. there is no beginning inventory because it is the first year of
operation.
d. none of these.
49. Which statement is not true about the gross profit method of
inventory valuation?
a. It may be used to estimate inventories for interim statements.
b. It may be used to estimate inventories for annual statements.
c. It may be used by auditors.
d. None of these.
50. A major advantage of the retail inventory method is that it
a. provides reliable results in cases where the distribution of items in
the inventory is different from that of items sold during the period.
b. hides costs from competitors and customers.
51. **************************************************
ACC 304 Week 3 Chapter 10 Homework
For more classes visit
www.snaptutorial.com
ACC 304 Week 3 Homework (Chapter 10)
1) Hanson Company is constructing a building. Construction begins
on February 1 and was completed on December 31. Expenditure were
$1,800,000 on march 1, $1,200,000 on June 1, and $3,000,000 on
December 31. Compute Hanson’s weighted-average accumulated
expenditure for interest capitalization purposes.
2) Mehta Company traded a used welding machine (cost $9,000,
accumulated depreciation $3,000) for office equipment with an
estimated fair value of $5,000. Mehta also paid $3,000 cash in the
transaction. Prepare the journal entry to record the exchange.
3) Ottawa Corporation owns machinery that cost $20,000 when
purchased on July 1, 2011. Depreciation has been recorded at a rate of
$2,400 per year, resulting in a balance is accumulated depreciation of
$8,400 at December 31, 2014. The machinery is sold on September 1,
52. 2015, for $10,500. Prepare journal entries to (a) update depreciation for
2015 and (b) record the sale.
4) Martin Buber co. purchased land as a factory site for $400,000.
The process of tearing down two old buildings on the site and
constructing the factory required 6 months. The company paid $42,000
to raze the old buildings and salvaged lumber and brick for $6,300.
Legal fees of $1,850 were paid for title investigation and drawing the
purchase contract. Martin Buber paid $2,200 to an engineering firm for a
land survey, and $68,000 for drawing the factory plans. The land survey
had to be made before definitive plans could be drawn. Title insurance
on the property cost $1,500, and a liability insurance premium paid
during construction was $900. The contractor’s charge for construction
was $2,740,000.The company paid the contractor in two
installments:$1,200,000 at the end of 3 months and $1,540,000 upon
completion. Interest costs of $170,000 were incurred to finance the
construction. Determine the cost of the land and the cost of the building
as they should be recorded on the books of Martin Buberk Co. assumes
that the land survey was for the building.
5) Ben Sisko Supply Company, a newly formed corporation, incurred
the following expenditure related to land, to Buildings, and to machinery
and equipment. Determine the amounts that should be debited to land, to
buildings, and to machinery and equipment. Assume the benefits of
capitalizing interest during construction exceed the cost of
implementation.
6) On December 31, 2013, Main Inc. borrowed $3,000,000 at 12%
payable annually to finance the construction of a new building. In 2014,
the company made the following expenditures related to this building:
March 1, $360,000; June 1, $600,000;$1,500,000; December 1,
$1,500,000. The building was completed in February 2015. Additional
information is provided as follows.
7) Determine the amount of interest to be capitalized in 2014 in
relation to the construction of the building.
8) Prepare the journal entry to record the capitalization of interest and
the recognition of interest expense, if any, at December 31, 2014.
53. 9) Busytown Corporation, which manufactures shoes, hired a recent
college graduate to work in accounting department. On the first day of
work, the accountant was assigned to total a batch of invoices with the
use of an adding machine. Before long, the accountant, who had never
before seen such a machine, managed to break the machine. Busy town
Corporation gave the machine plus $340 to Disk Business machine
Company (dealer) in exchange for a new machine. Assume the
following information about the machines. For each company, prepare
the necessary journal entry to record the exchange.
10) Under IFRS, Sampson company, who has a non-current asset which
has been classified as held-for-sale, should
11) Miller Company, a company who uses IFRS reporting standards,
sells a non-current asset classified as held-for-sale. Which of the
following statements is true regarding the treatment of a gain on a
subsequent increase in the fair value less cost?
12) Damson Company, a company who uses IFRS reporting standards,
has a non-current asset that has been classified as held-for-sale. When
the asset no longer meets this definition, Danson should
13) Elton Industries, a company who uses IFRS reporting standards, has
asset and liabilities of a disposal group classified as held-for-sale shown
on its statement of financial position. Which of the following presents
the best treatment for these?
14) Woodson Company, a company who uses IFRS reporting standards,
has identified a group of plant assets for disposal. On January 1, 2014,
the carrying value of these assets was $14.5 million. The assets were
revalued to $13.5 million on January 5, 2014, when they were identified
as property for the disposal group. In addition, Woodson thinks that it
will cost $1.5 million to sell these assets. What carrying amount should
these assets reflect for year-end financial statements to be prepared on
January 10, 2014?
ACC 304 Week 4 Chapter 10 Quiz (All Possible
Questions)
54. For more classes visit
www.snaptutorial.com
ACC 304 Week 4 Quiz – Strayer NEW
Week 4 Quiz 3: Chapter 10
ACQUISITION AND DISPOSITION OF PROPERTY, PLANT, AND
EQUIPMENT
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. Assets classified as Property, Plant, and Equipment can be either
acquired for use in operations, or acquired for resale.
2. Assets classified as Property, Plant, and Equipment must be both
long-term in nature and possess physical substance.
3. When land with an old building is purchased as a future building
site, the cost of removing the old building is part of the cost of the new
building.
4. Insurance on equipment purchased, while the equipment is in
transit, is part of the cost of the equipment.
55. 5. Special assessments for local improvements such as street lights
and sewers should be accounted for as land improvements.
6. Variable overhead costs incurred to self-construct an asset should
be included in the cost of the asset.
7. Companies should assign no portion of fixed overhead to self-
constructed assets.
8. When capitalizing interest during construction of an asset, an
imputed interest cost on stock financing must be included.
9. Assets under construction for a company’s own use do not
qualify for interest cost capitalization.
10. Avoidable interest is the amount of interest cost that a company
could theoretically avoid if it had not made expenditures for the asset.
11. When a company purchases land with the intention of developing
it for a particular use, interest costs associated with those expenditures
qualify for interest capitalization.
12. Assets purchased on long-term credit contracts should be
recorded at the present value of the consideration exchanged.
13. Companies account for the exchange of nonmonetary assets on
the basis of the fair value of the asset given up or the fair value of the
asset received.
14. If a nonmonetary exchange lacks commercial substance, and
cash is received, a partial gain or loss is recognized.
56. 15. When a company exchanges nonmonetary assets and a loss
results, the company recognizes the loss only if the exchange has
commercial substance.
16. Costs incurred subsequent to the acquisition of an asset are
capitalized if they provide future benefits.
17. Improvements are often referred to as betterments and involve
the substitution of a better asset for the one currently used.
18. When an ordinary repair occurs, several periods will usually
benefit.
19. Companies always treat gains or losses from an involuntary
conversion as extraordinary items.
20. If a company scraps an asset without any cash recovery, it
recognizes a loss equal to the asset’s book value.
True False Answers—Conceptual
MULTIPLE CHOICE—Conceptual
21. Plant assets may properly include
a. deposits on machinery not yet received.
b. idle equipment awaiting sale.
c. land held for possible use as a future plant site.
d. none of these.
57. 22. Which of the following is not a major characteristic of a plant
asset?
a. Possesses physical substance
b. Acquired for resale
c. Acquired for use
d. Yields services over a number of years
23. Which of these is not a major characteristic of a plant asset?
a. Possesses physical substance
b. Acquired for use in operations
c. Yields services over a number of years
d. All of these are major characteristics of a plant asset.
24. Cotton Hotel Corporation recently purchased Emporia Hotel and
the land on which it is located with the plan to tear down the Emporia
Hotel and build a new luxury hotel on the site. The cost of the Emporia
Hotel should be
a. depreciated over the period from acquisition to the date the hotel is
scheduled to be torn down.
b. written off as an extraordinary loss in the year the hotel is torn down.
c. capitalized as part of the cost of the land.
d. capitalized as part of the cost of the new hotel.
58. 25. The cost of land does not include
a. costs of grading, filling, draining, and clearing.
b. costs of removing old buildings.
c. costs of improvements with limited lives.
d. special assessments.
26. The cost of land typically includes the purchase price and all of
the following costs except
a. grading, filling, draining, and clearing costs.
b. street lights, sewers, and drainage systems cost.
c. private driveways and parking lots.
d. assumption of any liens or mortgages on the property.
27. If a corporation purchases a lot and building and subsequently
tears down the building and uses the property as a parking lot, the proper
accounting treatment of the cost of the building would depend on
a. the significance of the cost allocated to the building in relation to the
combined cost of the lot and building.
b. the length of time for which the building was held prior to its
demolition.
c. the contemplated future use of the parking lot.
59. d. the intention of management for the property when the building was
acquired.
28. The debit for a sales tax properly levied and paid on the purchase
of machinery preferably would be a charge to
a. the machinery account.
b. a separate deferred charge account.
c. miscellaneous tax expense (which includes all taxes other than those
on income).
d. accumulated depreciation--machinery.
29. Fences and parking lots are reported on the balance sheet as
a. current assets.
b. land improvements.
c. land.
d. property and equipment.
S30. Historical cost is the basis advocated for recording the
acquisition of property, plant, and equipment for all of the following
reasons except
a. at the date of acquisition, cost reflects fair market value.
b. property, plant, and equipment items are always acquired at their
original historical cost.
60. c. historical cost involves actual trans-actions and, as such, is the most
reliable basis.
d. gains and losses should not be anticipated but should be recognized
when the asset is sold.
S31. To be consistent with the historical cost principle, overhead costs
incurred by an enterprise constructing its own building should be
a. allocated on the basis of lost production.
b. eliminated completely from the cost of the asset.
c. allocated on an opportunity cost basis.
d. allocated on a pro rata basis between the asset and normal
operations.
32. Which of the following costs are capitalized for self-constructed
assets?
a. Materials and labor only
b. Labor and overhead only
c. Materials and overhead only
d. Materials, labor, and overhead
33. Which of the following assets do not qualify for capitalization of
interest costs incurred during construction of the assets?
a. Assets under construction for an enterprise's own use.
61. b. Assets intended for sale or lease that are produced as discrete
projects.
c. Assets financed through the issuance of long-term debt.
d. Assets not currently undergoing the activities necessary to prepare
them for their intended use.
34. Assets that qualify for interest cost capitalization include
a. assets under construction for a company's own use.
b. assets that are ready for their intended use in the earnings of the
company.
c. assets that are not currently being used because of excess capacity.
d. All of these assets qualify for interest cost capitalization.
35. When computing the amount of interest cost to be capitalized,
the concept of "avoidable interest" refers to
a. the total interest cost actually incurred.
b. a cost of capital charge for stockholders' equity.
c. that portion of total interest cost which would not have been incurred
if expenditures for asset construction had not been made.
d. that portion of average accumulated expenditures on which no
interest cost was incurred.
36. The period of time during which interest must be capitalized
ends when
62. a. the asset is substantially complete and ready for its intended use.
b. no further interest cost is being incurred.
c. the asset is abandoned, sold, or fully depreciated.
d. the activities that are necessary to get the asset ready for its intended
use have begun.
37. Which of the following statements is true regarding
capitalization of interest?
a. Interest cost capitalized in connection with the purchase of land to be
used as a building site should be debited to the land account and not to
the building account.
b. The amount of interest cost capitalized during the period should not
exceed the actual interest cost incurred.
c. When excess borrowed funds not immediately needed for
construction are temporarily invested, any interest earned should be
offset against interest cost incurred when determining the amount of
interest cost to be capitalized.
d. The minimum amount of interest to be capitalized is determined by
multiplying a weighted average interest rate by the amount of average
accumulated expenditures on qualifying assets during the period.
38. Construction of a qualifying asset is started on April 1 and
finished on December 1. The fraction used to multiply an expenditure
made on April 1 to find weighted-average accumulated expenditures is
a. 8/8.
b. 8/12.
63. d. an abandonment of the asset.
**************************************************
ACC 304 Week 4 Chapter 11 Homework
For more classes visit
www.snaptutorial.com
ACC 304 Week 4 Chapter 11 Homework
1) Lockard Company purchased machinery on January 1, 2014, for
$102,960. The machinery is estimated to have a salvage value of
$10,296 after a useful life of 8 years.
2) Compute 2014 depreciation expense using the double-declining-
balance method.
3) Compute 2014 depreciation expense using the double-declining-
balance method, assuming the machinery was purchased on October 1,
2014.
4) Everly Corporation acquires a coal mine at a cost of $452,000.
Intangible development costs total $113,000.After extraction has
64. occurred, Everly must restore the property (estimated fair value of the
obligation is $90,400), after which it can be sold for $180,800. Everly
estimates that 4,520 tons of coal can be extracted.
5) In its 2011 annual report, Campbell Soup Company reports
beginning-of-the-year total assets of $6,276 million, end-of-the-year
total assets of $6,862 million, total sales of $7,719 million, and net
income of $805 million.
6) Compute Campbell’s asset turnover ratio. (Round answer to 3
decimal places, e.g. 4.871.)
Asset turnover ratio
7) Compute Campbell’s profit margin on sales. (Round answer to 2
decimal places, e.g. 4.87 or 4.87%.)
8) Compute Campbell’s return on assets using (1) asset turnover and
profit margin and (2) net income. (Round answers to 2 decimal places,
e.g. 4.87 or 4.87%.)Return on assets
9) Rembrandt Company acquired a plant asset at the beginning of
Year 1. The asset has an estimated service life of 5 years. An employee
has prepared depreciation schedules for this asset using three different
methods to compare the results of using one method with the results of
using other methods. You are to assume that the following schedules
have been correctly prepared for this asset using (1) the straight-line
method, (2) the sum-of-the-years'-digits method, and (3) the double-
declining-balance method.
Year Straight-Line Sum-of-the-
Years'-Digits Double-Declining-
Balance
1 $11,970 $19,950
$26,600
2 11,970 15,960
15,960
65. 3 11,970 11,970
9,576
4 11,970 7,980
5,746
5 11,970 3,990
1,968
Total $59,850
$59,850 $59,850
10) What is the cost of the asset being depreciated? (Round answer to 0
decimal places, e.g. 45,892.)
Cost of asset $
11) If there is any salvage value and the amount is unknown (as is the
case here), the cost would have to be determined by looking at the data
for the double-declining balance method.
12) What amount, if any, was used in the depreciation calculations for
the salvage value for this asset? (Round answer to 0 decimal places, e.g.
45,892.)
13) Which method will produce the highest charge to income in Year 1?
The method that produces the highest charge to income in Year 1 is
14) Which method will produce the highest charge to income in Year 4?
The method that produces the highest charge to income in Year 4 is
15) Which method will produce the highest book value for the asset at
the end of Year 3?
The method that produces the highest book value for the asset at the end
of Year 3 is
16) Prepare the journal entry (if any) to record the impairment of the
asset at December 31, 2014. (If no entry is required, select "No entry"
for the account titles and enter 0 for the amounts. Credit account titles
66. are automatically indented when amount is entered. Do not indent
manually.)
17) If the asset is sold at the end of Year 3, which method would yield
the highest gain (or lowest loss) on disposal of the asset?
The method that will yield the highest gain (or lowest loss) on disposal
of the asset if the asset is sold at the end of Year 3 is
18) Muggsy Bogues Company purchased equipment for $224,700 on
October 1, 2014. It is estimated that the equipment will have a useful life
of 8 years and a salvage value of $24,720. Estimated production is
39,600 units and estimated working hours are 20,200. During 2014,
Bogues uses the equipment for 590 hours and the equipment produces
1,100 units.
Compute depreciation expense under each of the following methods.
Bogues is on a calendar-year basis ending December 31.
19) Presented below is information related to equipment owned by
Suarez Company at December 31, 2014.
Cost $ 20,232,000
Accumulated depreciation to date 2,248,000
Expected future net cash flows 15,736,000
Fair value 10,790,400
Suarez intends to dispose of the equipment in the coming year. It is
expected that the cost of disposal will be $ 44,960 . As of December 31,
2014, the equipment has a remaining useful life of 4 years.
20) The following data relate to the Machinery account of Eshkol, Inc.
at December 31, 2014.
Machinery
A B C D
Original cost $108,560 $120,360
$188,800 $188,800
67. Year purchased 2009 2010 2011
2013
Useful life 10 years 15,000 hours 15
years 10 years
Salvage value $7,316 $7,080 $11,800
$11,800
Depreciation method Sum-of-the-years'-digits
Activity Straight-line Double-declining balance
Accum. depr through 2014* $73,632 $83,072
$35,400 $37,760
*In the year an asset is purchased, Eshkol, Inc. does not record any
depreciation expense on the asset.
In the year an asset is retired or traded in, Eshkol, Inc. takes a full year’s
depreciation on the asset.
21) Mandall Company constructed a warehouse for $280,000 on
January 2, 2014. Mandall estimates that the warehouse has a useful life
of 20 years and no residual value. Construction records indicate that
$40,000 of the cost of the warehouse relates to its heating, ventilation,
and air conditioning (HVAC) system, which has an estimated useful life
of only 10 years. What is the first year of depreciation expense using
straight-line component depreciation under IFRS?
22) Francisco Corporation is constructing a new building at a total
initial cost of $10,000,000.The building is expected to have a useful life
of 50 years with no residual value. The building’s finished surfaces (e.g.,
roof cover and floor cover) are 5% of this cost and have a useful life of
20 years. Building services systems (e.g., electric, heating, and
plumbing) are 20% of the cost and have a useful life of 25 years. The
depreciation in the first year using component depreciation, assuming
straight-line depreciation with no residual value, is:
68. 23) Which of the following statements is correct?
Both IFRS and GAAP permit revaluation of property, plant, and
equipment.
IFRS permits revaluation of property, plant, and equipment but not
GAAP.
Both IFRS and GAAP do not permit revaluation of property, plant, and
equipment.
GAAP permits revaluation of property, plant, and equipment but not
IFRS.
24) Hilo Company has land that cost $350,000 but now has a fair value
of $500,000. Hilo Company decides to use the revaluation method
specified in IFRS to account for the land. Which of the following
statements is correct?
25) Under IFRS, value-in-use is defined as:
**************************************************
ACC 304 Week 5 Midterm Part 1 (Set 1)
For more classes visit
www.snaptutorial.com
69. The book value of a plant asset is
The asset turnover ratio is computed by dividing
On September 19, 2014, Markham Co. purchased machinery for
$285,000. Salvage value was estimated to be $15,000. The machinery
will be depreciated over eight years using the sum-of-the-years'-digits
method. If depreciation is computed on the basis of the nearest full
month, Markham should record depreciation expense for 2015 on this
machinery of
In 2014, Bargain shop reported net income of $5.7 billion, net sales of
$175 billion, and average total assets of $70 billion. What is Bargain
shop's asset turnover ratio?
In 2006, Jarrett Company purchased a tract of land as a possible future
plant site. In January, 2014, valuable sulphur deposits were discovered
on adjoining property and Jarrett Company immediately began
explorations on its property. In December, 2014, after incurring
$800,000 in exploration costs, which were accumulated in an expense
account, Jarrett discovered sulphur deposits appraised at $4,500,000
more than the value of the land. To record the discovery of the deposits,
Jarrett should
The primary IFRS related to property, plant and equipment is found in
Ryan Distribution Co. has determined its December 31, 2014 inventory
on a FIFO basis at $490,000. Information pertaining to that inventory
follows:
LF Corporation, a manufacturer of Mexican foods, contracted in 2014 to
purchase 1,500 pounds of a spice mixture at $5.00 per pound, delivery to
70. be made in spring of 2015. By 12/31/14, the price per pound of the spice
mixture had dropped to $4.70 per pound. In 2014, LF should recognize
Plank Co. uses the retail inventory method. The following information is
available for the current year.
Cost
Retail
Beginning inventory
$234,000
$366,000
Purchases
885,000
1,245,000
Freight-in
15,000
—
Employee discounts
—
6,000
Net markups
—
71. 45,000
Net markdowns
—
60,000
Sales revenue
—
1,170,000
10.
Which of the following is true of normal shortages?
Under the lower-of-cost-or-market method, the replacement cost of an
inventory item would be used as the designated market value
Which of the following is not a common disclosure for inventories?
The use of a Purchase Discounts account implies that the recorded cost
of a purchased inventory item is its
Hay Company had January 1 inventory of $180,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,080,000 and
sales were $1,800,000.December 31 inventory at year-end prices was
$227,700, and the price index was 110.
What is Hay Company’s gross profit
16. In the double-extension method, the value of the units in
inventory is extended at:
17. Web World began using dollar-value LIFO for costing its
inventory last year. The base year layer consists of $400,000. Assuming
the current inventory at end of year prices equals $552,000 and the index
for the current year is 1.10, what is the ending inventory using dollar-
value LIFO?
18.
RF Company had January 1 inventory of $200,000 when it adopted
dollar-value LIFO. During the year, purchases were $1,200,000 and
72. sales were $2,000,000.December 31 inventory at year-end prices was
$286,720, and the price index was 112.
What is RF Company’s gross profit?
19. Cotton Hotel Corporation recently purchased Emporia Hotel and the
land on which it is located with the plan to tear down the Emporia Hotel
and build a new luxury hotel on the site. The cost of the Emporia Hotel
should be
20. Ecker Company purchased a new machine on May 1, 2006 for
$352,000. At the time of acquisition, the machine was estimated to have
a useful life of ten years and an estimated salvage value of $16,000. The
company has recorded monthly depreciation using the straight-line
method. On March 1, 2015, the machine was sold for $48,000. What
should be the loss recognized from the sale of the machine?
21. Under IFRS, Sampson Company, who has a non-current asset which
has been classified as held-for-sale, should
22. The cost of land does not include
23. Which of the following is not a condition that must be satisfied
before interest capitalization can begin on a qualifying asset?
24. Which of the following is not a major characteristic of a plant asset?
25. Ringler Corporation exchanges one plant asset for a similar plant
asset and gives cash in the exchange. The exchange is not expected to
cause a material change in the future cash flows for either entity. If a
gain on the disposal of the old asset is indicated, the gain will
**************************************************
ACC 304 Week 5 Midterm Part 1 (Set 2)
73. For more classes visit
www.snaptutorial.com
Multiple Choice Question 90
If Labor, Inc. uses the composite method and its composite rate is 7.5%
per year, what entry should it make when plant assets that originally cost
$80,000 and have been used for 10 years are sold for $24,000?
Multiple Choice Question 102
Porter Resources Company acquired a tract of land containing an
extractable natural resource. Porter is required by its purchase contract to
restore the land to a condition suitable for recreational use after it has
extracted the natural resource. Geological surveys estimate that the
recoverable reserves will be 2,000,000 tons, and that the land will have a
value of $1,000,000 after restoration. Relevant cost information follows:
Multiple Choice Question 110
In 2014, shop reported net income of $5.7 billion, net sales of $175
billion, and average total assets of $70 billion. What is Bargain shop's
return on total assets?
Multiple Choice Question 106
In 2006, Jarrett Company purchased a tract of land as a possible future
plant site. In January, 2014, valuable sulphur deposits were discovered
on adjoining property and Jarrett Company immediately began
explorations on its property. In December, 2014, after incurring
$800,000 in exploration costs, which were accumulated in an expense
account, Jarrett discovered sulphur deposits appraised at $4,500,000
more than the value of the land. To record the discovery of the deposits,
Jarrett should
Multiple Choice Question 66
Grover Corporation purchased a truck at the beginning of 2014 for
$93,600. The truck is estimated to have a salvage value of $3,600 and a
74. useful life of 120,000 miles. It was driven 21,000 miles in 2014 and
29,000 miles in 2015. What is the depreciation expense for 2015?
Multiple Choice Question 70
Halltown Company purchased a depreciable asset for $450,000.The
estimated salvage value is $30,000, and the estimated useful life is 8
years. The double-declining balance method will be used for
depreciation. What is the depreciation expense for the second year on
this asset?
Multiple Choice Question 78
Robust Inc. has the following information related to an item in its ending
inventory. Product 66 has a cost of $812, a replacement cost of $775, a
net realizable value of $800, and a normal profit margin of $50. What is
the final lower-of-cost-or-market inventory value for product 66?
Multiple Choice Question 132
Ryan Distribution Co. has determined its December 31, 2014 inventory
on a FIFO basis at $490,000. Information pertaining to that inventory
follows:
Multiple Choice Question 50
A major advantage of the retail inventory method is that it
provides a method for inventory control and facilitates determination of
the periodic inventory for certain types of companies.
Multiple Choice Question 116
The following data concerning the retail inventory method are taken
from the financial records of
If the foregoing figures are verified and a count of the ending inventory
reveals that merchandise actually on hand amounts to $108,000 at retail,
the business has
Multiple Choice Question 76
Given the historical cost of product Dominoe is $22, the selling price of
product Dominoe is $30, costs to sell product Dominoe are $5, the
replacement cost for product Dominoe is $20, and the normal profit
margin is 20% of sales price, what is the cost amount that should be used
in the lower-of-cost-or-market comparison?
IFRS Multiple Choice Question 06
75. Which of the following statements is true regarding IFRS and
inventories?
With respect to inventories, IFRS defines market as net realizable value.
Multiple Choice Question 74
In a period of falling prices, which inventory method generally provides
the greatest amount of net income?
Multiple Choice Question 31
When using a perpetual inventory system,
all of these answer choices are correct.
Multiple Choice Question 100
Niles Co. has the following data related to an item of inventory:
Inventory, March 1 200 units @ $2.10
Purchase, March 7 700 units @ $2.20
Purchase, March 16 140 units @ $2.25
Inventory, March 31 260 units
The value assigned to ending inventory if Niles uses LIFO is
Multiple Choice Question 72
Which of the following is a reason why the specific identification
method may be considered ideal for assigning costs to inventory and
cost of goods sold?
The cost flow matches the physical flow.
Multiple Choice Question 27
Where should goods in transit that were recently purchased f.o.b.
destination be included on the balance sheet?
Not on the balance sheet
Multiple Choice Question 135
The following information applied to Howe, Inc. for 2014:
IFRS Multiple Choice Question 08
Tram Industries, a company who uses IFRS reporting standards, is
installing a new plant. The company has incurred the following costs
Multiple Choice Question 95
Glen Inc. and Armstrong Co. have an exchange with no commercial
substance. The asset given up by Glen Inc. has a book value of $36,000
and a fair value of $45,000. The asset given up by Armstrong Co. has a
76. book value of $60,000 and a fair value of $57,000. Boot of $12,000 is
received by Armstrong Co.
What amount should Armstrong Co. record for the asset received?
Multiple Choice Question 53
A plant site donated by a township to a manufacturer that plans to open a
new factory should be recorded on the manufacturer's books at
IFRS Multiple Choice Question 10
All of the following are true regarding the revaluation model allowed
under IFRS except
when an asset is revalued, any increase in carrying amount is reported as
miscellaneous revenue.
Multiple Choice Question 119
Peterson Company purchased machinery for $800,000 on January 1,
2011. Straight-line depreciation has been recorded based on a $50,000
salvage value and a 5-year useful life. The machinery was sold on May
1, 2015 at a gain of $15,000. How much cash did Peterson receive from
the sale of the machinery?
Multiple Choice Question 82
On January 2, 2014, Indian River Groves began construction of a new
citrus processing plant. The automated plant was finished and ready for
use on September 30, 2015. Expenditures for the
Indian River Groves borrowed $2,200,000 on a construction loan at 12%
interest on January 2, 2014. This loan was outstanding during the
construction period. The company also had $8,000,000 in 9% bonds
outstanding in 2014 and 2015.
What were the weighted-average accumulated expenditures for 2014?
$800,000
Multiple Choice Question 50
Accounting recognition should be given to some or all of the gain
realized on a nonmonetary exchange of plant assets except when the
exchange has
no commercial substance and additional cash is paid.
77. **************************************************
ACC 304 Week 5 Midterm Part 1 (Set 3)
For more classes visit
www.snaptutorial.com
ACC 304 Week 5 Midterm Part 1 (Set 3)
1) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has a
fair value of $1,500,000.
The journal entry to adjust the plant assets to fair value and record
revaluation surplus in year one will include a
2) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has a
fair value of $1,500,000.
78. The journal entry to adjust the plant assets to fair value and record
revaluation surplus in year one will include a
3) A major objective of MACRS for tax depreciation is to
4) Sifton Company reported the following data:
2014 2015
Sales $3,000,000 $3,900,000
Net Income 300,000 400,000
Assets at year end 1,800,000 2,500,000
Liabilities at year end 1,100,000 1,500,000
What is Sifton’s asset turnover for 2015?
5) Which of the following principles best describes the conceptual
rationale for the methods of matching depreciation expense with
revenues?
6) Slotkin Products purchased a machine for $39,000 on July 1, 2014.
The company intends to depreciate it over 8 years using the double-
declining balance method. Salvage value is $3,000. Depreciation for
2014 is
7) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has a
fair value of $1,500,000.
The financial statements for year one will include the following
information
8) Tongas Company applies revaluation accounting to plant assets
with a carrying value of $1,600,000, a useful life of 4 years, and no
79. salvage value. Depreciation is calculated on the straight-line basis. At
the end of year 1, independent appraisers determine that the asset has a
fair value of $1,500,000.
9) Which of the following is not an acceptable approach in applying
the lower-of-cost-or-market method to inventory?
10) The following data concerning the retail inventory method are
taken from the financial records of Welch Company.
Cost Retail
Beginning inventory $ 147,000 $ 210,000
Purchases 672,000 960,000
Freight-in 18,000 —
Net markups — 60,000
Net markdowns — 42,000
Sales — 1,008,000
If the foregoing figures are verified and a count of the ending inventory
reveals that merchandise actually on hand amounts to $108,000 at retail,
the business has
11) Muckenthaler Company sells product 2005WSC for $40 per unit.
The cost of one unit of 2005WSC is $36, and the replacement cost is
$35. The estimated cost to dispose of a unit is $8, and the normal profit
is 40%. At what amount per unit should product 2005WSC be reported,
applying lower-of-cost-or-market?
12) Muckenthaler Company sells product 2005WSC for $40 per unit.
The cost of one unit of 2005WSC is $36, and the replacement cost is
$35. The estimated cost to dispose of a unit is $8, and the normal profit
is 40%. At what amount per unit should product 2005WSC be reported,
applying lower-of-cost-or-market?
80. 13) Barker Pet supply uses the conventional retail method to determine
its ending inventory at cost. Assume the beginning inventory at cost
(retail) were $531,200 ($653,800), purchases during the current year at
cost (retail) were $2,137,200 ($2,772,200), freight-in on these purchases
totaled $127,800, sales during the current year totaled $2,704,000,and
net markups (markdowns) were $4,000 ($192,600). What is the ending
inventory value at cost?
14) Barker Pet supply uses the conventional retail method to determine
its ending inventory at cost. Assume the beginning inventory at cost
(retail) were $531,200 ($653,800), purchases during the current year at
cost (retail) were $2,137,200 ($2,772,200), freight-in on these purchases
totaled $127,800, sales during the current year totaled $2,704,000,and
net markups (markdowns) were $4,000 ($192,600). What is the ending
inventory value at cost?
15) Under the lower-of-cost-or-market method, the replacement cost of
an inventory item would be used as the designated market value
16) Under the lower-of-cost-or-market method, the replacement cost of
an inventory item would be used as the designated market value
17) During 2014, Larue Co., a manufacturer of chocolate candies,
contracted to purchase 200,000 pounds of cocoa beans at $4.00 per
pound, delivery to be made in the spring of 2015. Because a record
harvest is predicted for 2015, the price per pound for cocoa beans had
fallen to $3.30 by December 31, 2014.
Of the following journal entries, the one which would properly reflect in
2014 the effect of the commitment of Larue Co. to purchase the
200,000 pounds of cocoa is
18) During 2014, Larue Co., a manufacturer of chocolate candies,
contracted to purchase 200,000 pounds of cocoa beans at $4.00 per
81. pound, delivery to be made in the spring of 2015. Because a record
harvest is predicted for 2015, the price per pound for cocoa beans had
fallen to $3.30 by December 31, 2014.
19) Which method of inventory pricing best approximates specific
identification of the actual flow of costs and units in most manufacturing
situations?
20) Checkers uses the periodic inventory system. For the current
month, the beginning inventory consisted of 4,800 units that cost $12
each. During the month, the company made two purchases: 2,000 units
at $13 each and 8,000 units at $13.50 each. Checkers also sold 8,600
units during the month. Using the FIFO method, what is the ending
inventory?
21) Groh Co. recorded the following data pertaining to raw material X
during January 2014:
Units
Date Received Cost
Issued On Hand
1/1/14 Inventory $6.00
3,200
1/11/14 Issue
1,600 1,600
1/22/14 Purchase 4,000 $7.05
5,600
The moving-average unit cost of X inventory at January 31, 2014 is
22) Gross Corporation adopted the dollar-value LIFO method of
inventory valuation on December 31, 2013. Its inventory at that date was
$550,000 and the relevant price index was 100. Information regarding
inventory for subsequent years is as follows:
Date Inventory at
Current Prices Current
82. Price Index
December 31, 2014 $642,000
107
December 31, 2015 725,000 125
December 31, 2016 812,500 130
What is the cost of the ending inventory at December 31, 2014 under
dollar-value LIFO?
23) Gross Corporation adopted the dollar-value LIFO method of
inventory valuation on December 31, 2013. Its inventory at that date was
$550,000 and the relevant price index was 100. Information regarding
inventory for subsequent years is as follows:
Date Inventory at
Current Prices Current
Price Index
December 31, 2014 $642,000
107
December 31, 2015 725,000 125
December 31, 2016 812,500 130
What is the cost of the ending inventory at December 31, 2014 under
dollar-value LIFO?
24)Goods in transit which are shipped f.o.b. destination should be
24) Milford Company had 400 units of “Tank” in its inventory at a cost
of $6 each. It purchased 600 more units of “Tank” at a cost of $9 each.
Milford then sold 700 units at a selling price of $15 each. The LIFO
liquidation overstated normal gross profit by
83. 26) Milford Company had 400 units of “Tank” in its inventory at a cost
of $6 each. It purchased 600 more units of “Tank” at a cost of $9 each.
Milford then sold 700 units at a selling price of $15 each. The LIFO
liquidation overstated normal gross profit by
27)Huff Co. exchanged nonmonetary assets with Sayler Co. No cash
was exchanged and the exchange had no commercial substance. The
carrying amount of the asset surrendered by Huff exceeded both the fair
value of the asset received and Sayler's carrying amount of that asset.
Huff should recognize the difference between the carrying amount of the
asset it surrendered and
28) A machine cost $600,000, has annual depreciation of $100,000,and
has accumulated depreciation of $450,000 on December 31, 2014. On
April 1, 2015, when the machine has a fair value of $137,500, it is
exchanged for a machine with a fair value of $675,000 and the proper
amount of cash is paid. The exchange had commercial substance.
The gain to be recorded on the exchange is
29) Glen Inc. and Armstrong Co. have an exchange with no commercial
substance. The asset given up by Glen Inc. has a book value of $36,000
and a fair value of $45,000. The asset given up by Armstrong Co. has a
book value of $60,000 and a fair value of $57,000. Boot of $12,000 is
received by Armstrong Co.
What amount should Glen Inc. record for the asset received?
30) Glen Inc. and Armstrong Co. have an exchange with no commercial
substance. The asset given up by Glen Inc. has a book value of $36,000
and a fair value of $45,000. The asset given up by Armstrong Co. has a
book value of $60,000 and a fair value of $57,000. Boot of $12,000 is
received by Armstrong Co.
What amount should Glen Inc. record for the asset received?
84. 31) Arlington Company is constructing a building. Construction began
on January 1 and was completed on December 31. Expenditures were
$4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on
December 31. Arlington Company borrowed $2,400,000 on January 1
on a 5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable.
What is the weighted-average interest rate used for interest capitalization
purposes?
32) Arlington Company is constructing a building. Construction began
on January 1 and was completed on December 31. Expenditures were
$4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on
December 31. Arlington Company borrowed $2,400,000 on January 1
on a 5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable.
What is the weighted-average interest rate used for interest capitalization
purposes?
33) Assets that qualify for interest cost capitalization include
34) Arlington Company is constructing a building. Construction began
on January 1 and was completed on December 31. Expenditures were
$4,800,000 on March 1, $3,960,000 on June 1, and $6,000,000 on
December 31. Arlington Company borrowed $2,400,000 on January 1
on a 5-year, 12% note to help finance construction of the building. In
addition, the company had outstanding all year a 10%, 3-year,
$4,800,000 note payable and an 11%, 4-year, $9,000,000 note payable.
What are the weighted-average accumulated expenditures?
85. 35) Which of the following is a capital expenditure?
**************************************************
ACC 304 Week 5 Midterm Part 2
For more classes visit
www.snaptutorial.com
ACC 304 Week 5 Midterm Part 2
1) 1) A machine which cost $300,000 is acquired on October1, 2014.
Its estimated salvage value is $30,000 and its expected life is eight years.
a) Calculate depreciation expense for 2014 and 2015 by double-
declining balance
b) Calculate depreciation expense for 2014 and 2015 by sum-of-the-
years-digits
c) At the end of 2015, which method results in the larger
accumulated depreciation amount?