| Course | Financial Accounting |
| Test | Final Exam Part 1 (75 points) |
| Started | 6/13/16 10:21 AM |
| Submitted | 6/13/16 11:50 AM |
| Due Date | 6/16/16 6:00 PM |
| Status | Completed |
| Attempt Score | 72 out of 75 points |
| Time Elapsed | 1 hour, 29 minutes out of 3 hours |
| Results Displayed | Submitted 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
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