Reference no: EM132974292
Questions -
Q1. JCo acquired equipment on April 1, 2022, at a cost of $90,000 and with an estimated useful life of 10 years. The machine has a residual value of $10,000. JoyCo uses the double-declining-balance method of depreciation. How much depreciation should be recorded by JCo for the year ended December 31, 2022?
A. $18,000
B. $9,000
C. $10,000
D. $13,500
Q2. Zach Sports Ltd has 1,000 shares of $5.50, cumulative preferred shares and 10,000 common shares issued and outstanding. In the previous year (which was the first year of operations), the company paid total dividends of $1,000. The amount that must be paid to the preferred shareholders in the current year before any dividend is paid to common shareholders is
A. $1,000
B. $3,500
C. $4,500
D. $10,000
Q3. Tech Inc's board of directors voted to declare a common cash dividend of $.0.75 per share. The company has 15,000 common shares authorized, with 10,000 issued and outstanding. The amount of the dividend is
A. $7,500
B. $7,125
C. $5,625
D. $3,750
Q4. Bruce Corporation issued 8,000 common shares in exchange for land that has a fair market value of $184,000. The entry to record this transaction would include
A. A debit to Common Shares for $184,000
B. A debit to Land for $8,000
C. A credit to Land for $184,000
D. A credit to Common Shares for $184,000
Q5. A transfer from retained earnings to common shares in a share dividend transaction should be reported in the statement of cash flows as
A. An operating activity
B. A note or separate schedule
C. An investing activity
D. A financing activity
Q6. Deena Inc. reported $32,000 of cash provided by operating activities and the following data:
Depreciation Expense $34,000
Increase in accounts payable 9,000
Increase in wages payable 18,000
Increase in accounts receivable 9,000
Decrease in dividends payable 2,000
Deena's profit/loss for the period was
A. $30,000 profit
B. $18,000 loss
C. $20,000 loss
D. $36,000 loss
Q7. On January 1, 2015, Parris Corporation purchased 75% of Samitz Corporation for $100,000. On November 17, 2015, Samitz Corporation declared total dividends of $12,000. At year-end, Samitz Corporation reported profit of $60,000. The balance in the Parris Corporation's Investment in Samitz Corporation at December 31, 2015 should be
A. $91,000
B. $100,000
C. $109,000
D. $136,000
Q8. On January 1, 2020, Ildiko Corporation purchased a 35% interest in the common shares of Rance Ltd. for $60,000. Rance Ltd. reported profit and paid dividends as follows: 2020 - profit $40,000; dividends paid $50,000 2021 - profit $85,000; dividends paid $70,000. Assume that Ildiko Corporation uses the equity method to account for its investment in Rance Ltd. The balance in the "Investment Income" account on Ildiko's Income Statement for the year ended December 31, 2021 is
A. $43,750
B. $5,250
C. $29,750
D. $61,750
E. None of these
Q9. Investments in associates
A. Can be either debt or equity securities
B. Are not actively managed
C. Are purchased to earn interest, dividends, or for appreciation in value
D. Are accounted for using the equity method
E. All of these