This document provides the answers to an ACCT 311 final exam. It includes 25 multiple choice questions related to accounting topics like unearned revenue, current liabilities, contingent gains/losses, bonds, stockholders' equity, earnings per share, investments, leases, and pensions. The document provides the answers to help students study for the final exam. It directs students to the company's website for more information and exam downloads.
click on the link, you will find what you were looking for:homeworkmye.com
Customer support is very important to us. Please use our online chat system in case you have any questions. Also, you can email them to us at homeworkmye@gmail.com. We will do our best to answer you!
Partnership revision questions ay 2014 2015JUMA BANANUKA
The practice questions will help the students of Makerere University (MUK & MUBS) to appreciate the theory underlying businesses in Uganda especially the partnership businesses.
click on the link, you will find what you were looking for:homeworkmye.com
Customer support is very important to us. Please use our online chat system in case you have any questions. Also, you can email them to us at homeworkmye@gmail.com. We will do our best to answer you!
Partnership revision questions ay 2014 2015JUMA BANANUKA
The practice questions will help the students of Makerere University (MUK & MUBS) to appreciate the theory underlying businesses in Uganda especially the partnership businesses.
Romancing the Customer Experience | Sitecore Symposium 2016Delphic Digital
What are your customer’s pain points? Where are the barriers to conversion? Do customers readily provide their information? In other words, do customers love your site … or not? Find out all the ways you can determine if they do in this session. Presented in conjunction with a leading provider of senior living communities, the session shows how to marry user testing with Sitecore Experience Database (xDB) personalization tools, to deliver the right content, at the right time, to the right person. You will love the results of context marketing at its finest!
Presented by Delphic Digital's Sr. Account Director, Kate Dalbey @k8dalbey), and Sunrise Senior Living’s Sr. Director of Online Marketing, Abby See (@AbbyGSee) at the 2016 Sitecore Symposium.
ACC 291 NEW Become Exceptional--acc291new.comclaric123
For more course tutorials visit
www.acc291.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
ACC 291NEW Lessons in Excellence / acc291.comkopiko30
For more course tutorials visit
www.acc291.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
For more course tutorials visit
www.tutorialrank.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
For more course tutorials visit
www.tutorialrank.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
2. Three accounting issues associated with accounts receivable are
ACC 291 GENIUS NEW Education for Service--acc291genius.comkopiko55
FOR MORE CLASSES VISIT
www.acc291genius.com
1. The term “receivables” refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from
ill in the dollar changes caused in the Investment account and Div.docxgordienaysmythe
ill
in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company.
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)
(a) Fair Value Method
(b) Equity Method
Transaction
Investment Account
Dividend Revenue
Investment Account
Investment Revenue
1.
At the beginning of Year 1, Crane bought 25% of Hudson's common stock at its book value. Total book value of all Hudson's common stock was $850,000 on this date.
2.
During Year 1, Hudson reported $54,000 of net income and paid $27,000 of dividends.
3.
During Year 2, Hudson reported $31,500 of net income and paid $20,000 of dividends.
4.
During Year 3, Hudson reported a net loss of $12,000 and paid $3,800 of dividends.
5.
Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.
Exercise 122 (Part Level Submission)
The following information is available for Irwin Company for 2018:
Net Income
$119,000
Realized gain on sale of available-for-sale debt securities
10,000
Unrealized holding gain arising during the period on available-for-sale debt securities
30,000
Reclassification adjustment for gains included in net income
7,500
(a)
Determine other comprehensive income for 2018.
Other comprehensive income
$
Exercise 123
On January 2, 2018, Tylor Company issued a 4-year, $600,000 note at 8% fixed interest, interest payable semiannually. Tylor now wants to change the note to a variable rate note. As a result, on January 2, 2018, Tylor Company enters into an interest rate swap where it agrees to receive 8% fixed and pay LIBOR of 5.5% for the first 6 months on $600,000. At each 6-month period, the variable interest rate will be reset. The variable rate is reset to 6.6% on June 30, 2018.
Compute the net interest expense to be reported for this note and related swap transaction as of June 30, 2018.
Net interest expense
$
LINK TO TEXT
Compute the net interest expense to be reported for this note and related swap transaction as of December 31, 2018.
Net interest expense
$
Brief Exercise 17-2
Pina Company purchased, on January 1, 2017, as an available-for-sale security, $65,000 of the 8%, 5-year bonds of Chester Corporation for $60,072, which provides
an
10% return.
Prepare Pina’s journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $61,750.
(Round answers to 0 decimal places, e.g. 1,225..
Romancing the Customer Experience | Sitecore Symposium 2016Delphic Digital
What are your customer’s pain points? Where are the barriers to conversion? Do customers readily provide their information? In other words, do customers love your site … or not? Find out all the ways you can determine if they do in this session. Presented in conjunction with a leading provider of senior living communities, the session shows how to marry user testing with Sitecore Experience Database (xDB) personalization tools, to deliver the right content, at the right time, to the right person. You will love the results of context marketing at its finest!
Presented by Delphic Digital's Sr. Account Director, Kate Dalbey @k8dalbey), and Sunrise Senior Living’s Sr. Director of Online Marketing, Abby See (@AbbyGSee) at the 2016 Sitecore Symposium.
ACC 291 NEW Become Exceptional--acc291new.comclaric123
For more course tutorials visit
www.acc291.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
ACC 291NEW Lessons in Excellence / acc291.comkopiko30
For more course tutorials visit
www.acc291.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
For more course tutorials visit
www.tutorialrank.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
For more course tutorials visit
www.tutorialrank.com
1. The term “receivables” refers to
cash to be paid to debtors.
merchandise to be collected from individuals or companies.
cash to be paid to creditors.
amounts due from individuals or companies.
2. Three accounting issues associated with accounts receivable are
ACC 291 GENIUS NEW Education for Service--acc291genius.comkopiko55
FOR MORE CLASSES VISIT
www.acc291genius.com
1. The term “receivables” refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from
ill in the dollar changes caused in the Investment account and Div.docxgordienaysmythe
ill
in the dollar changes caused in the Investment account and Dividend Revenue or Investment Revenue account by each of the following transactions, assuming Crane Company uses (a) the fair value method and (b) the equity method for accounting for its investments in Hudson Company.
(Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Do not leave any answer field blank. Enter 0 for amounts.)
(a) Fair Value Method
(b) Equity Method
Transaction
Investment Account
Dividend Revenue
Investment Account
Investment Revenue
1.
At the beginning of Year 1, Crane bought 25% of Hudson's common stock at its book value. Total book value of all Hudson's common stock was $850,000 on this date.
2.
During Year 1, Hudson reported $54,000 of net income and paid $27,000 of dividends.
3.
During Year 2, Hudson reported $31,500 of net income and paid $20,000 of dividends.
4.
During Year 3, Hudson reported a net loss of $12,000 and paid $3,800 of dividends.
5.
Indicate the Year 3 ending balance in the Investment account, and cumulative totals for Years 1, 2, and 3 for dividend revenue and investment revenue.
Exercise 122 (Part Level Submission)
The following information is available for Irwin Company for 2018:
Net Income
$119,000
Realized gain on sale of available-for-sale debt securities
10,000
Unrealized holding gain arising during the period on available-for-sale debt securities
30,000
Reclassification adjustment for gains included in net income
7,500
(a)
Determine other comprehensive income for 2018.
Other comprehensive income
$
Exercise 123
On January 2, 2018, Tylor Company issued a 4-year, $600,000 note at 8% fixed interest, interest payable semiannually. Tylor now wants to change the note to a variable rate note. As a result, on January 2, 2018, Tylor Company enters into an interest rate swap where it agrees to receive 8% fixed and pay LIBOR of 5.5% for the first 6 months on $600,000. At each 6-month period, the variable interest rate will be reset. The variable rate is reset to 6.6% on June 30, 2018.
Compute the net interest expense to be reported for this note and related swap transaction as of June 30, 2018.
Net interest expense
$
LINK TO TEXT
Compute the net interest expense to be reported for this note and related swap transaction as of December 31, 2018.
Net interest expense
$
Brief Exercise 17-2
Pina Company purchased, on January 1, 2017, as an available-for-sale security, $65,000 of the 8%, 5-year bonds of Chester Corporation for $60,072, which provides
an
10% return.
Prepare Pina’s journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.) The bonds have a year-end fair value of $61,750.
(Round answers to 0 decimal places, e.g. 1,225..
FOR MORE CLASSES VISIT
www.acc291guide.com
1. The term “receivables” refers to cash to be paid to debtors. merchandise to be collected from individuals or companies. cash to be paid to creditors. amounts due from individuals or companies. 2. Three accounting issues associated with accounts receivable are depreciating
ProblemIssuance of stock organization costs. Snowbound Corporat.docxbriancrawford30935
Problem
Issuance of stock: organization costs. Snowbound Corporation was incorporated in July. The firm's charter authorized the sale of 200,000 shares of $10 par-value common stock. The following transactions occurred during the year:
7/1:
Sold 45,000 shares of common stock to investors for $18 per share. Cash was collected and the shares were issued.
7/7:
Issued 600 shares to Sharon Dale, attorney-at-law, for services rendered during the corporation's organizational phase. Dale charged $12,600 for her work.
8/11:
Sold 20,000 shares to investors for $22 per share. Cash was collected and the shares were issued.
12/14:
Issued 30,000 shares to the MJB Company for land valued at $900,000.
Instructions
Prepare journal entries to record each transaction.
Student Guidance ReportAshford University ACC205Guidance ReportWeek FourLISTEN TO AUDIO/VIDEO EXPLAINING THE GUIDANCE REPORTYELLOW INDICATES ACCOUNT AMOUNTS CHANGEDChange Account to:Based Upon Course Start DateAccount to
be changedOriginal
AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Ex 2Loan$ 225,000$ 250,000$ 260,000$ 270,000$ 280,000$ 290,000$ 450,000QuestionsYOUR ANSWERS BASED UPON COURSE START DATEa. Compute Hall’s accrued interest as of December 31, 20X1.b. Present the appropriate balance sheet disclosure for the accrued interest and the current and long-term portion of the outstanding debt as of December 31, 20X1.c. Repeat parts (a) and (b) using a date of December 31, 20X2, rather than December 31, 20X1. Assume that Hall is in compliance with the terms of the loan agreement.Accrued interest 12/31/X2DisclosureAccount to
be changedOriginal
AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Ex 4Salary expense5000051,00052,00053,00054,00055,00056,000QuestionsYOUR ANSWERS BASED UPON COURSE START DATESalary expenseSocial Security PayableMedicare PayableFed Taxes PayableState Taxes PayableInsurance PayableCashPayroll Tax ExpenseSocial Security PayableMedicare PayableState unemploymentFed unemploymentAccount to
be changedOriginal
AmountJan - FebMar-AprMay-JunJul-AugSept-OctNov-DecCh 7 Pb 212/1 Note payable2000025,00026,00028,00030,00031,00033,00012/1 Interest rate015%15%15%15%15%15%Warranty2027202820292030203120322033Purchase on account1600017,00018,00019,00020,00021,00022,000Note payable50006,0007,0008,0009,00010,00011,000Warranty repair162172182192202222232Salary accural14001,5001,6001,7001,8001,9002,000Vacation6%360006%37,0006%38,0006%39,0006%40,0006%41,0006%42,00012/26 interest120$ 120$ 120$ 120$ 120$ 120$ 120a. Prepare journal entries to record the preceding transactions and events.CashNotes PayableWarranty expenseWarranty LiabilityMerchandiseAccounts PayableCashNote PayableWarranty LiabilityCashSalary ExpenseSalary PayablePayroll ExpenseAccrued Vacation Payableb. Determine accrued interest as of December 31, 20XX, and prepare the necessary adjusting entry or entries.12/1 one month accrual12/26 60 day note-accrue 5 daysTotal Interest Acc.
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?
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.
Embracing GenAI - A Strategic ImperativePeter 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.
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
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.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
1. ACCT 311 Final Exam Answers
Follow Below Link to DownloadTutorial
https://homeworklance.com/downloads/acct-311-final-exam-answers/
For More Information Visit Our Website ( https://homeworklance.com/ )
Email us At: Support@homeworklance.com orlancehomework@gmail.com
1. XYZ Company sells appliance service contracts agreeing to repair appliances for a
two-year period. XYZ’s past experience is that, of the total dollars spent for repairs
on service contracts, 40% is incurred evenly during the first contract year and 60%
evenly during the second contract year. Receipts from service contract sales for the
two years ended December 31, year 2, are as follows:
Year 1 $500,000
Year 2 $600,000
Receipts from contracts are credited to unearned service contract revenue. Assume that all
contract sales are made evenly during the year. What amount should XYZ report as unearned
service contract revenue at December 31, year 2?
1. $360,000
2. $470,000
3. $480,000
4. $630,000
2. A Corp. had the following liabilities at December 31, year 2:
2. Accounts payable $55,000
Unsecured notes, 8%, due 7/1/Y3 400,000
Accrued expenses 35,000
Contingent liability 450,000
Deferred income tax liability 25,000
Senior bonds, 7%, due 3/31/Y3 1,000,000
The contingent liability is an accrual for possible losses on a $1,000,000 lawsuit filed against A.
A’s legal counsel expects the suit to be settled in year 4, and has estimated that A will be liable
for damages in the range of $450,000 to $750,000.
The deferred income tax liability is not related to an asset for financial reporting and is expected
to reverse in year 4.
What amount should A report in its December 31, year 2 balance sheet for current
liabilities?
1. $515,000
2. $940,000
3. $1,490,000
4. $1,515,000
3. During year 2, Smith Co. filed suit against West, Inc. seeking damages for patent
infringement. At December 31, year 2, Smith’s legal counsel believed that it was
probable that Smith would be successful against West for an estimated amount in
the range of $75,000 to $150,000, with all amounts in the range considered equally
likely. In March year 3, Smith was awarded $100,000 and received full payment
thereof. In its year 2 financial statements, issued in February year 3, how should this
award be reported?
1. As a receivable and revenue of $100,000.
2. As a receivable and deferred revenue of $100,000.
3. As a disclosure of a contingent gain of $100,000.
4. As a disclosure of a contingent gain of an undetermined amount in the range of
$75,000 to $150,000.
3. 4. A $100,000 bond payable is issued on June 1, Year One for 104. The bond pays
annual cash interest of 12 percent per year with payments every June 1 and
December 1. The bond was sold to yield an effective interest rate of 10 percent per
year. If the effective rate method is being used, what amount (rounded) should be
reported for the liability as of December 31, Year One?
1. $102,880
2. $103,060
3. $103,067
4. $103,209
5. On December 1, year 1, shares of authorized common stock were issued on a
subscription basis at a price in excess of par value. A total of 20% of the
subscription price of each share was collected as a down payment on December 1,
year 1, with the remaining 80% of the subscription price of each share due in year 2.
Collectibility was reasonably assured. At December 31, year 1, the stockholders’
equity section of the balance sheet would report additional paid-in capital for the
excess of the subscription price over the par value of the shares of common stock
subscribed and
1. Common stock issued for 20% of the par value of the shares of common stock
subscribed.
2. Common stock issued for the par value of the shares of common stock subscribed.
3. Common stock subscribed for 80% of the par value of the shares of common
stock subscribed.
4. Common stock subscribed for the par value of the shares of common stock
subscribed.
6. A company declared a cash dividend on its common stock on December 15, year 1,
payable on January 12, year 2. How would this dividend affect stockholders’ equity
on the following dates?
December 15, Year 1 December 31, Year 1 January 12, Year 2
a. Decrease No effect Decrease
b. Decrease No effect No effect
c. No effect Decrease No effect
d. No effect No effect Decrease
4. 7. At December 31, year 2 and year 1, Gow Corp. had 100,000 shares of common stock
and 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding.
No dividends were declared on either the preferred or common stock in year 2 or
year 1. Net income for year 2 was $1,000,000. For year 2, basic earnings per share
amounted to
10. $10.00
11. $ 9.50
12. $ 9.00
13. $ 8.50
8. Cox Corporation had 1,200,000 shares of common stock outstanding on January 1
and December 31, year 2. In connection with the acquisition of a subsidiary
company in June year 1, Cox is required to issue 50,000 additional shares of its
common stock on July 1, year 3, to the former owners of the subsidiary. Cox paid
$200,000 in preferred stock dividends in year 2, and reported net income of
$3,400,000 for the year. Cox’s diluted earnings per share for year 2 should be
2. $2.83
3. $2.72
4. $2.67
5. $2.56
9. Bing Corporation purchased bonds at a discount on the open market as an
investment and intends to hold these bonds to maturity. Assume that Bing elects the
fair value option. Bing should account for these bonds at
1.
2. Amortized cost.
3. Fair value.
4. Lower of cost or market.
10. On both December 31, year 1, and December 31, year 2, Kopp Co.’s only
marketable equity security had the same fair value, which was below cost. Kopp
considered the decline in value to be temporary in year 1 but other than temporary
in year 2. At the end of both years the security was classified as a noncurrent asset.
Kopp considers the investment to be available-for-sale. Assume that Kopp does not
elect the fair value option to account for its available-for-sale securities. What
should be the effects of the determination that the decline was other than temporary
on Kopp’s year 2 net noncurrent assets and net income?
1. No effect on both net noncurrent assets and net income.
2. No effect on net noncurrent assets and decrease in net income.
3. Decrease in net noncurrent assets and no effect on net income.
5. 4. Decrease in both net noncurrent assets and net income.
11. A company sells inventory costing $15,000 to a customer for $20,000. Because of
significant uncertainties surrounding the transaction, the installment sales method
is viewed as proper. In the first year, the company collects $5,700. In the second
year, the company collects another $8,000. What amount of profit should the
company recognize in the second year?
1. $2,000
2. $3,000
3. $4,000
4. $5,000
12. A company sends 10,000 units of its products to one of its customers on December
28, Year One. The customer has a right to return any of this merchandise within 6
months for a full refund. The company wants to record this transaction as a sale in
Year One. Which of the following is most likely to necessitate that the recording of
the transaction as a sale be delayed until Year Two?
1. The company can make a reasonable estimation that 25 percent of the units will
be returned.
2. Return of the goods is not contingent on resale.
3. If the goods are stolen from the customer, the obligation is not affected.
4. The company cannot make a reasonable estimation of the number of units that
will be returned.
13. In a statement of cash flows, if used equipment is sold at a gain, the amount shown
as a cash inflow from investing activities equals the carrying amount of the
equipment
1. Plus the gain.
2. Plus the gain and less the amount of tax attributable to the gain.
3. Plus both the gain and the amount of tax attributable to the gain.
4. With no addition or subtraction.
14. On September 1, year 1, Canary Co. sold used equipment for a cash amount
equaling its carrying amount for both book and tax purposes. On September 15,
year 1, Canary replaced the equipment by paying cash and signing a note payable
for new equipment. The cash paid for the new equipment exceededthe cash received
for the old equipment. How should these equipment transactions be reported in
Canary’s year 1 statement of cash flows?
6. 1. Cash outflow equal to the cash paid less the cash received.
2. Cash outflow equal to the cash paid and note payable less the cash received.
3. Cash inflow equal to the cash received and a cash outflow equal to the cash paid
and note payable.
4. Cash inflow equal to the cash received and a cash outflow equal to the cash paid.
15. In a statement of cash flows (using indirect approach for operating activities), an
increase in inventories should be presented as a(n)
1. Outflow of cash.
2. Inflow and outflow of cash.
3. Addition to net income.
4. Deduction from net income.
16. A company starts the year with accounts payable of $13,000 but ends the year with
the balance being $19,000. Net income for the year is $300,000. If the company
reports its cash flows from operating activities by means of the indirect method,
what amount should be reported?
1. $287,000
2. $294,000
3. $306,000
4. $319,000
17. Which of the following differences would result in future taxable amounts?
1. Expenses or losses that are deductible after they are recognized in financial
income.
2. Revenues or gains that are taxable before they are recognized in financial income.
3. Expenses or losses that are deductible before they are recognized in financial
income.
4. Revenues or gains that are recognized in financial income but are never included
in taxable income.
18. For the year ended December 31, year 1, Tyre Co. reported pretax financial
statement income of $750,000. Its taxable income was $650,000. The difference is
due to accelerated depreciation for income tax purposes. Tyre’s effective income tax
rate is 30%, and Tyre made estimated tax payments during year 1 of $90,000. What
amount should Tyre report as current income tax expense for year 1?
1. $105,000
2. $135,000
7. 3. $195,000
4. $225,000
19. A temporary difference that would result in a deferred tax liability is
1. Interest revenue on municipal bonds.
2. Accrual of warranty expense.
3. Excess of tax depreciation over financial accounting depreciation.
4. Subscriptions received in advance.
20. Because Jab Co. uses different methods to depreciate equipment for financial
statement and income tax purposes, Jab has temporary differences that will reverse
during the next year and add to taxable income. Deferred income taxes that are
based on these temporary differences should be classified in Jab’s balance sheet as a
1. Contra account to current assets.
2. Contra account to noncurrent assets.
3. Current liability.
4. Noncurrent liability.
21. On January 1, Year One, a company started a defined benefit pension plan for its
employees. Assume that the annual service cost is $200,000. Funding is $150,000
each January 1, beginning on January 1, Year One. The interest rate used for
discount purposes to determine the projected benefit obligation is 10 percent. Both
actual and expectedearnings on plan assets are 8 percent. What pension liability
should this company report on its December 31, Year Two, balance sheet?
1. $83,040
2. $105,040
3. $111,040
4. $125,040
22. A company has a defined benefit pension plan. Which of the following does not
create a prior service cost?
1. The expected length of life for the average employee is increased by two years by
the actuary determining the company’s projected benefit obligation.
2. The plan is amended by the company, a move which causes an increase in the
projected benefit obligation.
3. The plan is begun and employees are given credit for the time they have worked
previously.
8. 4. The plan is amended by the company, a move which causes a decrease in the
projected benefit obligation.
23. The Aberdeen Company maintains a defined benefit pension plan for its employees.
On January 1, Year Four, this pension plan is amended so that employees can retire
at the age of 64 rather than 65. As a result of this decision, the projected benefit
obligation on that date increases by $2 million. The average remaining service life of
the active employee group is 10 years. The discount interest rate is 7 percent per
year. Which of the following statements is true?
1. The $2 million is recorded as an expense on January 1, Year Four.
2. The $2 million is recorded as an expense on December 31, Year Four.
3. The company reports $1.8 million as accumulated other comprehensive income in
stockholders’ equity on December 31, Year Four.
4. The company reports $2.14 million as accumulated other comprehensive income
in stockholders’ equity on December 31, Year Four.
24. At the end of the current year, a company with a defined benefit pension plan has a
projected benefit obligation of $414,000, plan assets of $302,000, pension expense of
$119,000, prior service cost (other comprehensive income) of $23,000, unrecognized
gain (other comprehensive income) of $5,000, service cost of $124,000, and funding
for the year of $84,000. What liability is reported by the company on its balance
sheet?
1. $98,000
2. $101,000
3. $104,000
4. $112,000
25. A company leases a machine on January 1, Year One for five years which call for
annual payments of $10,000 per year beginning on January 1, Year One. The
present value of these payments based on a reasonable interest rate of 10 percent is
assumed to be $42,000. This lease is an operating lease. How much expense will the
company recognize for Year One?
1. $4,200
2. $8,400
3. $10,000
4. $12,600
9. 26. On January 1, Year One, Owens buys a large warehouse for $700,000 which it
immediately sells to National Financing for $800,000. The warehouse has an
expected life of 10 years. Owens immediately signs a contract to lease the warehouse
back for its own use. This lease is for 10 years with payments of $120,000 per year.
The first payment is made immediately. Assume that these payments were
computed using a 10 percent annual interest rate. Which of the following statements
is true?
1. The $100,000 gain on the original sale must be recognized by Owens
immediately.
2. The $100,000 gain on the original sale will be recorded by Owens as other
comprehensive income.
3. The $100,000 gain on the original sale will be deferred until the end of the lease
and then recognized as a gain.
4. The $100,000 gain on the original sale will be deferred and then written off each
year as a reduction in the depreciation expense on the leased warehouse.
27. The Turpen Company buys a machine for $30,000. Normally, the machine would be
sold to a customer for $42,000. However, in hopes of expanding the number of
available customers, Turpen leases the machine for 4 years to the Royal
Corporation. The accountants for the Turpen Company are currently studying how
this lease should be recorded for financial reporting purposes. Which of the
following statements is true?
1. Because this property is normally sold, the lease contract must be recorded
as a capital lease by Turpen.
2. Because this property is normally sold, the lessee (Royal) must report it as a
sales-type lease.
3. If the machine has an expectedlife of five years, then both parties must
report the transaction as a capital lease.
4. If the lease contract gives Royal the option to buy the machine at the end of
four years, then both parties must report the transaction as a capital lease
28. Danville Corporation buys a truck for $52,000 and leases it to Viceroy for 8 years.
At the end of that time, Viceroy can buy the truck for $7,000 in cash. Which of the
following is not true?
1. If this purchase option is viewed as a bargain, Danville should record the
$7,000 as a future cash flow in accounting for the lease eventhough it is not
guaranteed.
2. Unless the purchase option is viewed as a bargain, Danville cannot account
for this lease as a capital lease.
3. The purchase option cannot be viewed as a bargain unless it is significantly
below the expected fair value of the truck on that date.
10. 4. If this purchase option is viewed as a bargain, Danville’s profit to be
recognized in the first year will be increased.
29. On January 1, Year One, Company A agrees to lease a truck from Ford for five
years, the truck’s entire life. This arrangement is viewed as a capital lease.
Payments will be exactly $10,000 per year with the first payment made immediately
and the second on January 1, Year Two and so on. A reasonable interest rate is 10
percent. The present value of a single amount of $1 in five years at an annual rate of
10 percent is .630. The present value of an annuity due of $1 for five years at an
annual rate of 10 percent is 3.81. What liability is reported by Company A on its
December 31, Year One balance sheet?
1. $28,100
2. $30,910
3. $31,740
4. $40,000
30. The Blacksville Company reports sales of $500,000 in Year One, its first year in
operations. Sales increased to $600,000 in Year Two and $700,000 in Year Three.
The company had total reported expenses of $280,000 in Year One, $370,000 in
Year Two, and $460,000 in Year Three. This company has consistently been
applying the Red Method, which recognizes one particular expense as always being
equal to 10 percent of sales. Assume, though, that at the very end of Year Three,
company officials decide to change to the Purple Method. This method is also
accepted by US GAAP but computes this same expense as simply being $62,000 each
year. Blacksville is now preparing to present income statements for only Years Two
and Three. After making the change, what is the beginning retained earnings
reported for Year Three? Ignore income taxes. Assume no dividends are
distributed.
1. $436,000
2. $442,000
3. $448,000
4. $450,000