The articles of partnership include the following

Assignment Help Accounting Basics

Reference no: EM13590746

Determine which answer is most correct and circle the corresponding letter.
1) Webber Company owns 28% of the common stock of Patten Company and account for the investment using the equity method. Assuming that Webber Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the

a. investment
b. investment plus Webber's share of Patten's net income earned since the investment was purchased
c. investment plus the total amount of dividends Webber has received from Patten since the investment was purchased
d. investment plus Webber's share of Patten's net income earned since the investment was purchased minus the total amount of dividends Webber has received from Patten since the investment was purchased

2) Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called
a. debentures
b. callable bonds.
c. early retirement bonds.
d. options.

3) Mega Sales sells some used store fixtures. The acquisition cost of the fixtures is $12,500, the accumulated depreciation on these fixtures is $9,750 at the time of sale. The fixtures are sold for $3,000. The value of this transaction in the Investing section of the statement of cash flows is:
a. $12,500
b. $3,000
c. $2,750
d. $250

4) X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of partnership include the following provisions regarding the division of net income: interest on original investment at 10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of $90,000 is allocated to Y?

a. $60,000
b.$43,000
c. $45,000
d. $47,000

5) What is the total stockholders' equity based on the following data?

Common Stock $800,000
Excess of Issue Price Over Par 375,000
Retained Earnings (deficit) 50,000

a. $1,100,000
b. $1,125,000
c. $1,175,000
d. $1,225,000

6)An investor purchased 500 shares of common stock, $25 par, for $21,750. Subsequently, 100 shares were sold for $49.50 per share. What is the amount of gain or loss on the sale?
a. $12,750 gain
b. $600 gain
c. $600 loss
d. $9,250 loss

7) Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $8,000. If the issuing corporation redeems the bonds at 101, what is the amount of gain or loss on redemption?

a. $2,000 loss
b. $2,000 gain
c. $8,000 loss
d. $8,000 gain

8) The net income reported on the income statement for the current year was $275,000. 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?
a. $198,000
b. $324,000
c. $352,000
d. $296,000

Reference no: EM13590746

Questions Cloud

The book value of jji assets and owners equity before the : during the current year peterson data coorporation purchased all of the outstanding common stock of junior jackson inc.

An audit revealed that in determining these amounts the : an audit revealed that in determining these amounts the ending inventory for 2012 was overstated by 18000. the company

The following table presents a summary of ratio analysis : the following table presents a summary of ratio analysis for uncle joes coffee based on the most recent 12 months and 5

Cncessions revenue 60300 salaries and wages expense : the following list in alphabetical order shows the various items that regularly appear on the financial statements of

The articles of partnership include the following : determine which answer is most correct and circle the corresponding letter.1 webber company owns 28 of the common stock

An investor purchased 500 shares of common stock 25 par for : 1. partners c and d each have a 40000 capital balance and share income and losses in a 32. cash equals 20000 noncash

While a firms sales and net income have been steady during : while a firms sales and net income have been steady during the last three years the firm has experienced a decrease in

The cost to rest a car is 30 per daywrite an expression : the cost to rest a car is 30 per day.write an expression for the cost of renting a car for d days. make a table to

The charge to rent a car is 2995 per day plus 08 per mile : the charge to rent a car is 29.95 per day plus .08 per mile. write an expression that shows the cost of renting a car

User Account

All Pages