Final Exam part 1

  ACC 557
  
CourseFinancial Accounting
TestFinal Exam Part 1 (75 points)
Started6/13/16 10:21 AM
Submitted6/13/16 11:50 AM
Due Date6/16/16 6:00 PM
StatusCompleted
Attempt Score72 out of 75 points  
Time Elapsed1 hour, 29 minutes out of 3 hours
Results DisplayedSubmitted Answers, Correct Answers

Question 1

3 out of 3 points

  
 Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a   
 Selected Answer: credit to Paid-in Capital from Treasury Stock for $4,000.Correct Answer: credit to Paid-in Capital from Treasury Stock for $4,000.   

Question 2

3 out of 3 points

  
 Stock dividends and stock splits have the following effects on retained earnings:          Stock Splits               Stock Dividends   
 Selected Answer: No change                       DecreaseCorrect Answer: No change                       Decrease   

Question 3

0 out of 3 points

  
 Xeris, Inc. has 1,000 shares of 6%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2015. What is the annual dividend on the preferred stock?   
 Selected Answer: $6,000 in totalCorrect Answer: $600 in total   

Question 4

3 out of 3 points

  
 The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is   
 Selected Answer: the corporation.Correct Answer: the corporation.   

Question 5

3 out of 3 points

  
 Art, Inc., has 5,000 shares of 4%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2015. There were no dividends declared in 2013. The board of directors declares and pays a $45,000 dividend in 2014 and in 2015. What is the amount of dividends received by the common stockholders in 2015?   
 Selected Answer: $30,000Correct Answer: $30,000   

Question 6

3 out of 3 points

  
 Jarrett Company issued 900 shares of no-par common stock for $13,200. Which of the following journal entries would be made if the stock has no stated value?   
 Selected Answer: Cash                                                                             13,200                     Common Stock                                                                              13,200Correct Answer: Cash                                                                             13,200                     Common Stock                                                                              13,200   

Question 7

3 out of 3 points

  
 Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney’s bill of $30,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting   
 Selected Answer: Organization Expense for $30,000.Correct Answer: Organization Expense for $30,000.   

Question 8

3 out of 3 points

  
 Which of the following factors does notaffect the initial market price of a stock?   
 Selected Answer: The par value of the stockCorrect Answer: The par value of the stock   

Question 9

3 out of 3 points

  
 Paid-In Capital in Excess of Stated Value   
 Selected Answer: is reported as part of paid-in capital on the balance sheet.Correct Answer: is reported as part of paid-in capital on the balance sheet.   

Question 10

3 out of 3 points

  
 The balance in the Accumulated Depreciation account represents the   
 Selected Answer: amount charged to expense since the acquisition of the plant asset.Correct Answer: amount charged to expense since the acquisition of the plant asset.   

Question 11

3 out of 3 points

  
 Goodwill can be recorded   
 Selected Answer: only when there is an exchange transaction involving the purchase of an entire business.Correct Answer: only when there is an exchange transaction involving the purchase of an entire business.   

Question 12

3 out of 3 points

  
         Powell’s Courier Service recorded a loss of $9,000 when it sold a van that originally cost $84,000 for $15,000. Accumulated depreciation on the van must have been   
 Selected Answer: $60,000.Correct Answer: $60,000.   

Question 13

3 out of 3 points

  
 The four subdivisions for plant assets are   
 Selected Answer: land, land improvements, buildings, and equipment.Correct Answer: land, land improvements, buildings, and equipment.   

Question 14

3 out of 3 points

  
 Which of the following methods of computing depreciation is production based?   
 Selected Answer: Units-of-activityCorrect Answer: Units-of-activity   

Question 15

3 out of 3 points

  
 Yocum Company purchased equipment on January 1 at a list price of $120,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $2,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?   
 Selected Answer: $129,360Correct Answer: $129,360   

Question 16

3 out of 3 points

  
 A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year’s depreciation of $36,000 had been recorded. The company should recognize a   
 Selected Answer: $96,000 loss on disposal.Correct Answer: $96,000 loss on disposal.   

Question 17

3 out of 3 points

  
         Grimwood Trucking purchased a tractor trailer for $171,500. Interline uses the units-of-activity method for depreciating its trucks and expects to drive the truck 1,000,000 miles over its 12-year useful life. Salvage value is estimated to be $24,500. If the truck is driven 90,000 miles in its first year, how much depreciation expense should Grimwood record?   
 Selected Answer: $13,230Correct Answer: $13,230   

Question 18

3 out of 3 points

  
 Beonce Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Beonce uses the straight-line method of amortization.Beonce Company decided to redeem the bonds on January 1, 2015. What amount of gain or loss would Beonce report on its 2015 income statement?    
 Selected Answer: $11,600 lossCorrect Answer: $11,600 loss   

Question 19

3 out of 3 points

  
 Oakley Company does not ring up sales taxes separately on the cash register. Total receipts for February amounted to $42,800. If the sales tax rate is 7%, what amount must be remitted to the state for February’s sales taxes?   
 Selected Answer: $2,800Correct Answer: $2,800   

Question 20

3 out of 3 points

  
 On October 1, 2014, Pennington Company issued a $90,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2015, the entry to record the payment of the note on July 1, 2015, will include a:   
 Selected Answer: debit to Interest Payable of $6,750.Correct Answer: debit to Interest Payable of $6,750.   

Question 21

3 out of 3 points

  
 If the market interest rate is greater than the contractual interest rate, bonds will sell   
 Selected Answer: at a discount.Correct Answer: at a discount.   

Question 22

3 out of 3 points

  
 Ward Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2015, at 103. The journal entry to record the issuance will show a   
 Selected Answer: credit to Premium on Bonds Payable for $150,000.Correct Answer: credit to Premium on Bonds Payable for $150,000.   

Question 23

3 out of 3 points

  
 In the balance sheet, mortgage notes payable are reported as   
 Selected Answer: both a current and a long-term liability.Correct Answer: both a current and a long-term liability.   

Question 24

3 out of 3 points

  
 The interest charged on a $50,000, 60-day note payable, at the rate of 6%, would be   
 Selected Answer: $500.Correct Answer: $500.   

Question 25

3 out of 3 points

  
 Interest expense on an interest-bearing note is   
 Selected Answer: accrued over the life of the note.Correct Answer: accrued over the life of the note.   

Monday, June 13, 2016 11:51:02 AM EDT




Click following link to download this document

Accounting 557 Week 10 Final Exam part 1.docx






Place an Order

Plagiarism Free!

Create an Account

Create an account at Top Tutor Online

  • Allows you to track orders.
  • Receive personal messages.
  • Send messages to a tutor.
Create Account

Post a Question/ Assignment

Post your specific assignment

  • Tutors will be notified of your assignment.
  • Review your question and include all the details.
  • A payment Link will be sent to you.
Post a Question

Wait for your Answer!

Make payment and wait for your answer

  • Make payment in accordance with the number of pages to be written.
  • Wait for your Answer as a professional works on your paper.
  • You will be notified when your Answer is ready.
💙🤍💚