Reference no: EM132513304

Question 1: The company's charter specifies that the company may sell up to 31 million shares of stock. The company issues 21 million shares to investors and later repurchases 8.5 million shares. The number of issued shares after these transactions have been accounted for is:

Multiple Choice

23 million shares.
21 million shares.
13 million shares.
16 million shares.

Multiple Choice

$24,000.
$13,000.
$18,000.
$20,000.

Question 2: Ross Inc was incorporated on Jan 1, 2018. During 2018, the following transactions took place:

Borrowed $5,040 from the bank by signing a promissory note.
Issued common stock to owners for $10,400.
Purchased $1,040 of inventory on account.
Paid $440 to suppliers as payment on account for the inventory purchased.

What is the amount of total assets at the end of the year?

Multiple Choice

$5,640
$16,040
$16,480
$15,440

Question 3: The following transactions occurred during February:

Received $1,000 cash for services performed during February.
Received $5,700 cash from the issuance of common stock to owners.
Received $500 from a customer as payment for services performed during January
Billed $3,800 to customers for services performed on account in February.
Borrowed $2,700 from the bank and signed a promissory note.

Received $1,300 from a customer for services to be performed during March.
As a result of these transactions, what is the amount of the increase to the Cash account?

Multiple Choice

$11,200
$2,800
$15,000
$8,000

Question 4: Jacob Company recently purchased land, a building, and equipment for a lump sum price of $120,000. Jacob's accountant is preparing to record this transaction in the accounting records and needs to determine the amount to record for eash asset. According to recent appraisal records, the building was appraised at $70,000, the land at $49,000, and the equipment at $22,000. What amount should Jacob's accountant record for the cost of the building in the accounting records? (Round your intermediate calculations to 3 decimal places.)

Multiple Choice

$59,520
$120,000
$0
$70,000

Question 5: Pink Comany's unadjusted trial balance is shown below. All account have normal balances.

Accounts Receivable$6,100

Accounts Payable 730

Cash 1,860

Sales Revenue 7,580

Common Stock 5,600

Equipment 6,500

Salaries Expense 480

Land 5,400

Notes Payable (short term) 5,600

Building 1,360

Prepaid Insurance 480

Rent Expense 1,480

Retained Earnings, January 1, 2018 8,010

Cost of Good Sold 3,860

What is the total of the debit side of the unadjusted trial balance?

Multiple Choice

$21,920.
$27,520.
$21,190.
$19,020.

Question 6: A company started the year with the following: Assets $106,000; Liabilities $36,000; Common Stock $66,000; Retained Earnings $4,000. During the year, the company earned revenue of $5,600, all of which was received in cash, and incurred expenses of $3,300, all of which were unpaid as of the end of the year. In addition, the company paid dividends of $1,600 to owners. Assume no other activities occurred during the year.

The amount of retained earnings at the end of the year is:

Multiple Choice

$4,700.
$9,600.
$6,300.
$1,600.

Question 7: Your company sells $170,000 of bonds for an issue price of $175,100. Which of the following statements is correct?

Multiple Choice

The bond sold at a price of 103.00, implying a premium of $5,100.
The bond sold at a price of 51.50, implying a discount of $5,100.
The bond sold at a price of 51.50, implying a premium of $5,100.
The bond sold at a price of 103.00, implying a discount of $5,100.

Question 8: Vesuvius Company has net sales revenue of $792,000, cost of goods sold of $349,200,net income of $187,200, and preferred dividends of $16,000 during the current year. At the beginning of the year, 479,000 shares of common stock were outstanding, and, at the end of the year, 549,000 shares of common stock were outstanding.A total of 7,000 preferred shares were outstanding throughout the year. The company's earnings per share for the current year is closest to:

Multiple Choice

$0.86.
$1.45.
$0.33.
$0.92.

Question 9: A manufacturer lends its supplier $164,000 for 3 years at a 8% annual interest rate. Interest payments are to be made twice a year. Each interest payment will be for:

Multiple Choice

$13,120.
$19,680.
$39,360.
$6,560.

Question 10: Tim's Company has recently purchased a new machine. The machine has a cost of $220,000 and an estimated residual value of $20,000. Tim's decided to use the units of production method for recording depreciation and has estimated that the machine can produce four million units over its entire life. During the month of May, the machine is used to make 500,000 units.

Calculate depreciation expense for the month of May using the units-of-production method.

Multiple Choice

$25,000.
$500,000.
$27,500.
$480,000.

Question 11: Nika Inc sells inexpensive sunglasses and uses a perpetual inventory system. The accounting records reported $525,000 of inventory at the beginning of June based on a physical count of inventory. During June, Nika Inc. purchased $67,900 of inventory and sold inventory that had cost $40,500. At the end of the June, the physical count of inventory shows $545,000 on hand. How much shrinkage occurred during June?

Multiple Choice

$33,100
$47,900
$20,000
$7,400

Question 12: Bobcat Corporation prepared its income statement containing the information below. Using vertical analysis, what percentages would apply to cost of sales, gross profit, and interest expense, respectively?

Net Sales$669,000

Cost of Sales 461,000

Gross Profit 208,000

Operating and Other Expenses 98,500

Interest Expense 42,500

Income Tax Expense 40,500

Net Income$26,500

Multiple Choice

100.0%45.1%8.8%

52.6%66.3%42.9%

Cost of SalesGross ProfitInterest Expense
71.8%100.0%19.5%

68.9%31.1%6.4%