Accounting 557 Week 10 Final Exam part 1

7 Oct No Comments
   
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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