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4.Santos Company gathered the following reconciling ...

4.Santos Company gathered the following...
4.Santos Company gathered the following reconciling information in preparing its August bank reconciliation:
Cash balance per books, 8/31
$3,500
Deposits in transit(150)
Notes receivable and interest collected by bank(850)
Bank charge for check printing( 20)
Outstanding checks (2,000)
NSF check (170)
The adjusted cash balance per books on August 31 is ___
        $4,160
        $4,010
        $2,310
        $2,460
5. Marcus Company developed the following reconciling information in preparing its September bank reconciliation:
Cash balance per bank, 9/30 $11,000
Note receivable collected by bank 6,000
Outstanding checks 9,000
Deposits-in-transit 4,500
Bank service charge 75
NSF 1,200
Using the above information, determine the cash balance per books (before adjustmnts) for the Marcus Company.
       a) $9,775 b)$15,725,c) 15,500,d) $1,775
        An accounting expert needs to answer these please.
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6/21/2008
Neo
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4. $4,160

5. $1,775

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Customer reply replied 9 years ago
6. A $100 petty cash fund has cash of $18 and receipts of $80. The journal entry to replenish the account would include a ________. (Points: 4)
        credit to Petty Cash for $84
        debit to Cash for $80
        debit to Cash Over and Short for $2
        credit to Cash for $80


7. Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is _______. (Points: 4)
        $18,500
        $17,500
        $18,000
        none of the above


8. Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
        debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800
        debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
        debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800
        debit Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800


9. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable? (Points: 4)
        $25,000
        $425,000
        $450,000
        $455,000


10. Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $12,900. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
        debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
        debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense, $14,000
        debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense, $11,800
        debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800


11. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
        debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400
        debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
        debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
        debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400


12. Bright Co. holds Park Co.’s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is: (Points: 4)
        Cash 20,000
Notes Receivable 20,000

        Accounts Receivable 20,600
Notes Receivable 20,000
Interest Revenue 600

        Cash 20,600
Notes Receivable 20,000
Interest Revenue 600

        Accounts Receivable 20,600
Notes Revenue 20,000
Interest Revenue 600



13. A building with an appraisal value of $137,000 is made available at an offer price of $142,000. The purchaser acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is _______. (Points: 4)
        $137,000
        $142,000
        $130,000
        $100,000


14. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? (Points: 4)
        $8,000
        $20,000
        $12,000
        $21,667


15. Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points: 4)
        $30,000
        $32,500
        $34,000
        $40,000


16. Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is _______. (Points: 4)
        $5,500
        $11,000
        $10,000
        $5,000


17. Computer equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year’s depreciation using straight-line depreciation. (Points: 4)
        $11,200
        $22,400
        $10,600
        $13,600


18. An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. Calculate this year’s depreciation using the revised amounts and straight line method. (Points: 4)
        $22,800
        $11,400
        $23,300
        $24,000


19. A fixed asset with a cost of $40,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is _______. (Points: 4)
        $1,000
        $3,500
        $ 500
        $1,500


20. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? (Points: 4)
        $2,500 loss
        $1,000 loss
        $2,500 gain
        $1,000 gain


21. On December 31, Reach It Batting Cages Company has decided to discard one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal. (Points: 4)
        Accumulated Depreciation Dr. $225,000
        Loss on Disposal of Asset $195,000
        Equipment Cr. $225,000
        Gain on Disposal of Asset $30,000


22. On October 30, Santos Salon, Inc. issued a 90-day note with a face amount of $60,000 to Charah Hair Products, Inc. for merchandise inventory. Determine the proceeds of the note assuming the note is discounted at 8%. (Points: 4)
        $55,200
        $64,800
        $58,800
        $61,200


23. Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively. Their earnings for the last completed payroll period of the year are $850 each. The amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each? (Points: 4)
        $127.50
        $115.50
        $112.50
        $0


24. The following totals for the month of June were taken from the payroll register of ABC Company:

Salaries expense
$13,000

Social security and Medicare Taxes withheld
975

Income Taxes withheld
2,600

Retirement Savings
500



The entry to record the payment of net pay would include a ________. (Points: 4)
        debit to Salaries Payable for $13,000
        Debit to Salaries Payable for $8,925
        Credit to Salaries Expense for $8,925
        Credit to Salaries Payable for $8,925


25. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? (Points: 4)
        $29,500
        $35,500
        $23,500
        $20,500


26. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 50,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding? (Points: 4)
        10,000
        40,000
        50,000
        60,000


27. The journal entry to issue 1,000,000 shares of $5 par common stock for $7.00 per share on January 2nd would be: _______. (Points: 4)
        Jan 2   Cash 7,000,000
Common Stock 5,000,000
Paid-In Capital in Excess
of Par - C/S 2,000,000

        Jan 2   Cash 5,000,000
Common Stock 5,000,000

        Jan 2   Cash 5,000,000
Paid-In Capital in Excess
of Par - C/S 2,000,000
Common Stock 5,000,000

        Jan 2   Cash 1,000,000
Common Stock 1,000,000



28. On January 1, 20xx, Sunshine Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, 20xx, Sunshine purchased 2,000 shares of treasury stock for $23 per share and later sold the treasury shares for $21 per share on March 1, 20xx.
The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a ________.

(Points: 4)
        credit to Treasury Stock for $46,000
        debit to Treasury Stock for $46,000
        debit to a loss account for $6,000
        credit to a gain account for $6,000


29. Day Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2006. What is the annual dividend on the preferred stock? (Points: 4)
        $50 per share
        $25,000 in total
        $600 in total
        $0.50 per share


30. What is the total stockholders' equity based on the following account balances?

Common Stock $400,000

Paid-In Capital in Excess of Par
40,000

Retained Earnings
190,000

Treasury Stock
20,000

(Points: 4)
        $640,000
        $630,000
        $610,000
        $650,000


31. The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance. (Points: 4)
        $29,000
        $35,000
        $39,000
        $45,000


32. Based on the following information, calculate the dividend yield on common stock

Market price per share $40.00

Earnings per share
4.00

Dividends per share
1.00

Investor's cost per share
30.00

(Points: 4)
        0.075
        0.025
        0.133
        0.033


33. What is the total stockholders' equity based on the following data?

Common Stock $500,000

Excess of Issue Price Over Par
375,000

Retained Earnings (deficit)
40,000

(Points: 4)
        $915,000
        $875,000
        $835,000
        $540,000


34. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be ________. (Points: 4)
        160,000 shares
        40,000 shares
        120,000 shares
        10,000 shares


35. If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to ________. (Points: 4)
        decrease total assets and total stockholders’ equity
        reduce the amount of retained earnings available for dividend declarations
        increase stockholders’ equity and to decrease total liabilities
        decrease total retained earnings and increase total liabilities


36. The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar) ________. (Points: 4)
        $37,736
        $42,400
        $40,000
        $2,400


37. The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) ________. (Points: 4)
        $23,916
        $37,632
        $23,700
        $30,000


38. The Mansur Company issued $100,000 of 12% bonds on May 1, 2007 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2007, and mature on January 1, 2011. The total interest expense related to these bonds for the year ended December 31, 2007 is ______. (Points: 4)
        $2,000
        $4,000
        $8,000
        $12,000


39. If $1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash received from the sale is _______. (Points: 4)
        $1,080,000
        $975,000
        $1,000,000
        $1,025,000


40. When the market rate of interest was 12%, Newman Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was _______. (Points: 4)
        $321,970
        $1,000,000
        $943,494
        $621,524


41. A corporation issues $100,000, 8%, 5-year bonds on January 1, 2007, for $104,200. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1, 2007, is _______. (Points: 4)
        $8,420
        $4,420
        $4,000
        $3,580


42. Bonds with a face amount $1,000,000, are sold at 97. The entry to record the issuance is _______. (Points: 4)
        Cash 1,000,000
Premium on Bonds Payable 30,000
Bonds Payable 970,000

        Cash 970,000
Premium on Bonds Payable 30,000
Bonds Payable 1,000,000

        Cash 970,000
Discount on Bonds Payable 30,000
Bonds Payable 1,000,000

        Cash 970,000
Bonds Payable 970,000



43. Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption? (Points: 4)
        $1,100 loss
        $1,100 gain
        $8,000 loss
        $8,000 gain


44. A $300,000 bond was redeemed at 98 when the carrying value of the bond was $296,000. The entry to record the redemption would include a _______. (Points: 4)
        loss on bond redemption of $4,000
        gain on bond redemption of $4,000
        gain on bond redemption of $2,000
        loss on bond redemption of $2,000


45. Financing activities involve ________. (Points: 4)
        lending money
        acquiring investments
        issuing debt
        acquiring long-lived assets


46. Cash receipts from interest and dividends are classified as ________. (Points: 4)
        financing activities
        operating activities
        investing activities
        either financing or investing activities


47. Accounts receivable arising from trade transactions amounted to $45,000 and $52,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is _______. (Points: 4)
        $105,000
        $112,000
        $98,000
        $140,000


48. Land costing $47,000 was sold for $78,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? (Points: 4)
        $78,000
        $47,000
        $109,000
        $31,000


49. Cash dividends of $80,000 were declared during the year. Cash dividends payable were $10,000 and $15,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is _______. (Points: 4)
        $85,000
        $80,000
        $95,000
        $75,000


50. Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? (Points: 4)
        $50,000
        $78,000
        $118,000
        $68,000


51. The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:


End
Beginning

Cash
$ 50,000
$ 60,000

Accounts receivable
112,000
108,000

Inventories
105,000
93,000

Prepaid expenses
4,500
6,500

Accounts payable (merchandise creditors)
75,000
89,000



What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? (Points: 4)
        $271,000
        $279,000
        $327,000
        $256,000


52. Concerning the Indirect Statement of Cash Flows, select the correct statement. (Points: 4)
        The management of a company would mostly utilize the Indirect Statement of Cash Flows as a management tool since it starts with Net Income from the Income Statement.
        The management of a company would not normally distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it would most likely confuse the average reader.
        The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it starts with Net Income and ends in the current cash balance which increases reader confidence in the report.
        The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it does not present any relation to the other statements of the report, therefore it is least likely to confuse the reader.


53. If accounts payable have increased during a period _______. (Points: 4)
        revenues on an accrual basis are less than revenues on a cash basis
        expenses on an accrual basis are less than expenses on a cash basis
        expenses on an accrual basis are the same as expenses on a cash basis
        expenses on an accrual basis are greater than expenses on a cash basis


54. The following selected account balances appeared on the financial statements of the Franklin Company:

Accounts Receivable, Jan. 1
$13,000

Accounts Receivable, Dec. 31
9,000

Accounts Payable, Jan 1
4,000

Accounts payable Dec. 31
7,000

Merchandise Inventory, Jan 1
10,000

Merchandise Inventory, Dec 31
15,000

Sales
56,000

Cost of Goods Sold
31,000



The Franklin Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are ________. (Points: 4)
        $56,000
        $52,000
        $60,000
        $45,000


55. Jones Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Jones Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Jones Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Jones Company's July bank reconciliation should be ________. (Points: 4)
        $7,200
        $12,600
        $17,700
        $18,000

I'll be posting in parts.

6. A $100 petty cash fund has cash of $18 and receipts of $80. The journal entry to replenish the account would include a ________. (Points: 4)
credit to Petty Cash for $84
debit to Cash for $80
debit to Cash Over and Short for $2
credit to Cash for $80


7. Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and uncollectible accounts expense is estimated at 3% of net sales. If net sales are $600,000, the amount of the adjusting entry to record the provision for doubtful accounts is _______. (Points: 4)
$18,500
$17,500
$18,000
none of the above


8. Allowance for Doubtful Accounts has a credit balance of $800 at the end of the year (before adjustment), and an analysis of accounts in the customers ledger indicates doubtful accounts of $15,000. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
debit Uncollectible Accounts Expense, $800; credit Allowance for Doubtful Accounts, $800
debit Uncollectible Accounts Expense, $14,200; credit Allowance for Doubtful Accounts, $14,200
debit Allowance for Doubtful Accounts, $800; credit Uncollectible Accounts Expense, $800
debit Allowance for Doubtful Accounts, $15,800; credit Uncollectible Accounts Expense, $15,800


9. After the accounts are adjusted and closed at the end of the fiscal year, Accounts Receivable has a balance of $450,000 and Allowance for Doubtful Accounts has a balance of $25,000. What is the net realizable value of the accounts receivable? (Points: 4)
$25,000
$425,000
$450,000
$455,000


10. Allowance for Doubtful Accounts has a credit balance of $1,100 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $12,900. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
debit Uncollectible Accounts Expense, $14,000; credit Allowance for Doubtful Accounts, $14,000
debit Allowance for Doubtful Accounts, $14,000; credit Uncollectible Accounts Expense, $14,000
debit Allowance for Doubtful Accounts, $11,800; credit Uncollectible Accounts Expense, $11,800
debit Uncollectible Accounts Expense, $11,800; credit Allowance for Doubtful Accounts, $11,800


11. Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers' accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision for doubtful accounts? (Points: 4)
debit Allowance for Doubtful Accounts, $16,400; credit Uncollectible Accounts Expense, $16,400
debit Allowance for Doubtful Accounts, $19,400; credit Uncollectible Accounts Expense, $19,400
debit Uncollectible Accounts Expense, $19,400; credit Allowance for Doubtful Accounts, $19,400
debit Uncollectible Accounts Expense, $16,400; credit Allowance for Doubtful Accounts, $16,400


12. Bright Co. holds Park Co.'s $20,000, 120 day, 9% note. The entry made by Bright Co. when the note is collected, assuming no interest has previously been accrued is: (Points: 4)
Cash 20,000
Notes Receivable 20,000

Accounts Receivable 20,600
Notes Receivable 20,000
Interest Revenue 600

Cash 20,600
Notes Receivable 20,000
Interest Revenue 600


Accounts Receivable 20,600
Notes Revenue 20,000
Interest Revenue 600



13. A building with an appraisal value of $137,000 is made available at an offer price of $142,000. The purchaser acquires the property for $30,000 in cash, a 90-day note payable for $40,000, and a mortgage amounting to $60,000. The cost basis recorded in the buyer's accounting records to recognize this purchase is _______. (Points: 4)
$137,000
$142,000
$130,000
$100,000


14. A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 5 years or 15,000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours? (Points: 4)
$8,000
$20,000
$12,000
$21,667


15. Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of depreciation for the first full year, during which the equipment was used 3,300 hours? (Points: 4)
$30,000
$32,500
$34,000
$40,000


16. Equipment with a cost of $80,000, an estimated residual value of $5,000, and an estimated life of 15 years was depreciated by the straight-line method for 5 years. Due to obsolescence, it was determined that the useful life should be shortened by 5 years and the residual value changed to zero. The depreciation expense for the current and future years is _______. (Points: 4)
$5,500
$11,000
$10,000
$5,000


17. Computer equipment was acquired at the beginning of the year at a cost of $56,000 that has an estimated residual value of $3,000 and an estimated useful life of 5 years. Determine the 2nd year's depreciation using straight-line depreciation. (Points: 4)
$11,200
$22,400
$10,600
$13,600


18. An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. Calculate this year's depreciation using the revised amounts and straight line method. (Points: 4)
$22,800
$11,400
$23,300
$24,000


19. A fixed asset with a cost of $40,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000. Assuming a trade-in allowance of $3,000, the recognized loss on the trade is _______. (Points: 4)
$1,000
$3,500
$ 500
$1,500


20. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? (Points: 4)
$2,500 loss
$1,000 loss
$2,500 gain
$1,000 gain


21. On December 31, Reach It Batting Cages Company has decided to discard one of its batting cages. The initial cost of the equipment was $225,000 with an accumulated depreciation of $195,000. Depreciation has been taken up to the end of the year. The following will be included in the entry to record the disposal. (Points: 4)
Accumulated Depreciation Dr. $225,000
Loss on Disposal of Asset $195,000
Equipment Cr. $225,000
Gain on Disposal of Asset $30,000

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Customer reply replied 9 years ago
Your great Neo. My friend has had you before and they stated that you are very knowledgeable when it comes to accounting.
Customer reply replied 9 years ago
Do you want me to go ahead and accept this now or after you have completed the work?

Hello Rmt,

Good day!

I do apologize for my late response. I got offline for some hours to run for an errand. Thank you for your very kind words and of your friend too. Also, thank you for accepting even after the completion.

Here are the continuation.

22. On October 30, Santos Salon, Inc. issued a 90-day note with a face amount of $60,000 to Charah Hair Products, Inc. for merchandise inventory. Determine the proceeds of the note assuming the note is discounted at 8%. (Points: 4)
$55,200
$64,800
$58,800
$61,200


23. Prior to the last weekly payroll period of the calendar year, the cumulative earnings of employees A and B are $99,350 and $91,000 respectively. Their earnings for the last completed payroll period of the year are $850 each. The amount of earnings subject to social security tax at 6% is $100,000. All earnings are subject to Medicare tax of 1.5%. Assuming that the payroll will be paid on December 29, what will be the employer's total FICA tax for this payroll period on the two salary amounts of $850 each? (Points: 4)
$127.50
$115.50
$112.50
$0


24. The following totals for the month of June were taken from the payroll register of ABC Company:

Salaries expense
$13,000

Social security and Medicare Taxes withheld
975

Income Taxes withheld
2,600

Retirement Savings
500



The entry to record the payment of net pay would include a ________. (Points: 4)
debit to Salaries Payable for $13,000
Debit to Salaries Payable for $8,925
Credit to Salaries Expense for $8,925
Credit to Salaries Payable for $8,925


25. During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year? (Points: 4)
$29,500
$35,500
$23,500
$20,500


26. The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 50,000 shares were originally issued and 10,000 were subsequently reacquired. What is the number of shares outstanding? (Points: 4)
10,000
40,000
50,000
60,000


27. The journal entry to issue 1,000,000 shares of $5 par common stock for $7.00 per share on January 2nd would be: _______. (Points: 4)
Jan 2 Cash 7,000,000
Common Stock 5,000,000
Paid-In Capital in Excess
of Par - C/S 2,000,000


Jan 2 Cash 5,000,000
Common Stock 5,000,000

Jan 2 Cash 5,000,000
Paid-In Capital in Excess
of Par - C/S 2,000,000
Common Stock 5,000,000

Jan 2 Cash 1,000,000
Common Stock 1,000,000



28. On January 1, 20xx, Sunshine Corporation had 40,000 shares of $10 par value common stock issued and outstanding. All 40,000 shares had been issued in a prior period at $20.00 per share. On February 1, 20xx, Sunshine purchased 2,000 shares of treasury stock for $23 per share and later sold the treasury shares for $21 per share on March 1, 20xx.
The journal entry to record the purchase of the treasury shares on February 1, 20xx, would include a ________.

(Points: 4)
credit to Treasury Stock for $46,000
debit to Treasury Stock for $46,000
debit to a loss account for $6,000
credit to a gain account for $6,000


29. Day Inc. has 5,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2006. What is the annual dividend on the preferred stock? (Points: 4)
$50 per share
$25,000 in total
$600 in total
$0.50 per share


30. What is the total stockholders' equity based on the following account balances?

Common Stock $400,000

Paid-In Capital in Excess of Par
40,000

Retained Earnings
190,000

Treasury Stock
20,000

(Points: 4)
$640,000
$630,000
$610,000
$650,000


31. The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance. (Points: 4)
$29,000
$35,000
$39,000
$45,000


32. Based on the following information, calculate the dividend yield on common stock

Market price per share $40.00

Earnings per share
4.00

Dividends per share
1.00

Investor's cost per share
30.00

(Points: 4)
0.075
0.025
0.133
0.033


33. What is the total stockholders' equity based on the following data?

Common Stock $500,000

Excess of Issue Price Over Par
375,000

Retained Earnings (deficit)
40,000

(Points: 4)
$915,000
$875,000
$835,000
$540,000


34. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be ________. (Points: 4)
160,000 shares
40,000 shares
120,000 shares
10,000 shares


35. If the board of directors authorizes a $100,000 restriction of retained earnings for a future plant expansion, the effect of this action is to ________. (Points: 4)
decrease total assets and total stockholders' equity
reduce the amount of retained earnings available for dividend declarations

increase stockholders' equity and to decrease total liabilities
decrease total retained earnings and increase total liabilities

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36. The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar) ________. (Points: 4)
$37,736
$42,400
$40,000
$2,400


37. The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) ________. (Points: 4)
$23,916
$37,632
$23,700
$30,000


38. The Mansur Company issued $100,000 of 12% bonds on May 1, 2007 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2007, and mature on January 1, 2011. The total interest expense related to these bonds for the year ended December 31, 2007 is ______. (Points: 4)
$2,000
$4,000
$8,000
$12,000


39. If $1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash received from the sale is _______. (Points: 4)
$1,080,000
$975,000
$1,000,000
$1,025,000


40. When the market rate of interest was 12%, Newman Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was _______. (Points: 4)
$321,970
$1,000,000
$943,494
$621,524


41. A corporation issues $100,000, 8%, 5-year bonds on January 1, 2007, for $104,200. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized on July 1, 2007, is _______. (Points: 4)
$8,420
$4,420
$4,000
$3,580


42. Bonds with a face amount $1,000,000, are sold at 97. The entry to record the issuance is _______. (Points: 4)
Cash 1,000,000
Premium on Bonds Payable 30,000
Bonds Payable 970,000

Cash 970,000
Premium on Bonds Payable 30,000
Bonds Payable 1,000,000

Cash 970,000
Discount on Bonds Payable 30,000
Bonds Payable 1,000,000


Cash 970,000
Bonds Payable 970,000



43. Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption? (Points: 4)
$1,100 loss
$1,100 gain
$8,000 loss
$8,000 gain


44. A $300,000 bond was redeemed at 98 when the carrying value of the bond was $296,000. The entry to record the redemption would include a _______. (Points: 4)
loss on bond redemption of $4,000
gain on bond redemption of $4,000
gain on bond redemption of $2,000
loss on bond redemption of $2,000
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45. Financing activities involve ________. (Points: 4)
lending money
acquiring investments
issuing debt
acquiring long-lived assets


46. Cash receipts from interest and dividends are classified as ________. (Points: 4)
financing activities
operating activities
investing activities
either financing or investing activities


47. Accounts receivable arising from trade transactions amounted to $45,000 and $52,000 at the beginning and end of the year, respectively. Net income reported on the income statement for the year was $105,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows prepared by the indirect method is _______. (Points: 4)
$105,000
$112,000
$98,000
$140,000


48. Land costing $47,000 was sold for $78,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? (Points: 4)
$78,000
$47,000
$109,000
$31,000


49. Cash dividends of $80,000 were declared during the year. Cash dividends payable were $10,000 and $15,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is _______. (Points: 4)
$85,000
$80,000
$95,000
$75,000


50. Land costing $68,000 was sold for $50,000 cash. The loss on the sale was reported on the income statement as other expense. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? (Points: 4)
$50,000
$78,000
$118,000
$68,000


51. The net income reported on the income statement for the current year was $250,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:


End
Beginning

Cash
$ 50,000
$ 60,000

Accounts receivable
112,000
108,000

Inventories
105,000
93,000

Prepaid expenses
4,500
6,500

Accounts payable (merchandise creditors)
75,000
89,000



What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method? (Points: 4)
$271,000
$279,000
$327,000
$256,000


52. Concerning the Indirect Statement of Cash Flows, select the correct statement. (Points: 4)
The management of a company would mostly utilize the Indirect Statement of Cash Flows as a management tool since it starts with Net Income from the Income Statement.
The management of a company would not normally distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it would most likely confuse the average reader.
The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it starts with Net Income and ends in the current cash balance which increases reader confidence in the report.
The management of a company would most likely distribute the Indirect Statement of Cash Flows as a statement within its annual reports because it does not present any relation to the other statements of the report, therefore it is least likely to confuse the reader.


53. If accounts payable have increased during a period _______. (Points: 4)
revenues on an accrual basis are less than revenues on a cash basis
expenses on an accrual basis are less than expenses on a cash basis
expenses on an accrual basis are the same as expenses on a cash basis
expenses on an accrual basis are greater than expenses on a cash basis


54. The following selected account balances appeared on the financial statements of the Franklin Company:

Accounts Receivable, Jan. 1
$13,000

Accounts Receivable, Dec. 31
9,000

Accounts Payable, Jan 1
4,000

Accounts payable Dec. 31
7,000

Merchandise Inventory, Jan 1
10,000

Merchandise Inventory, Dec 31
15,000

Sales
56,000

Cost of Goods Sold
31,000



The Franklin Company uses the direct method to calculate net cash flow from operating activities. Cash collections from customers are ________. (Points: 4)
$56,000
$52,000
$60,000
$45,000


55. Jones Company had checks outstanding totaling $5,400 on its June bank reconciliation. In July, Jones Company issued checks totaling $38,900. The July bank statement shows that $26,300 in checks cleared the bank in July. A check from one of Jones Company's customers in the amount of $300 was also returned marked "NSF." The amount of outstanding checks on Jones Company's July bank reconciliation should be ________. (Points: 4)
$7,200
$12,600
$17,700
$18,000
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Customer reply replied 9 years ago
You are great Neo . High ratings for you***** I scored a 87 so far but it not due till tommorrow so this is great . I am content. I will do work with you later.

Thanks

Hello Rmt,

Good day!

I am very glad you're contented with the result. I am quite sad, though, to know I got 7 wrong answers.

May I please request you to cite the question numbers where I went wrong and the answers given so I can improve my understanding.

Thank you so much! :)

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Customer reply replied 9 years ago
No problem your still very smart in this field and anXXXXXbetter then what I would have scored. Hey its a B. Thanks for all your hard work.
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