Reference no: EM132578707
Question 1: Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 60,000 shares of $2 par value common stock at a price of $30 cash per share. On December 31, 2018, Towson reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that Towson will report on its year end Balance Sheet for Paid in Capital Common Stock in Excess to par.
Question 2: Towson Corp., had 5,000 shares of $100 par, 5% cumulative preferred stock as of January 1, 2018. No additional shares of preferred stock were issued during fiscal years 2018 & 2019. Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018. A total of $100,000 of dividends was paid in 2019. Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019.
Question 3: On January 2, 2018, the first year of operations, Brunswick Corp. issued 15,000 shares of $10 par value common stock for $15 per share. On July 1, 2018, 2,000 of these shares were reacquired for $18 each. On September 1, 2018 Brunswick Corp. reissued 700 shares of its treasury stock for $22 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Brunswick will report on its fiscal year 2018 Balance Sheet for Paid in Capital Treasury Stock.
Question 4: On August 1, 2018, Towson Corp., declared a 5% stock dividend on its common stock when the market value of the common stock was $19 per share. The balance in the common stock account, before the stock dividend was declared, was $1,000,000. The par value of all common stock is $10. What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?
Question 5: Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:
|
Date
|
Company
|
# of Shares
|
Price per Share
|
|
8/15
|
X Company
|
1,500
|
$44
|
|
9/25
|
Y Company
|
1,250
|
30
|
|
9/30
|
Z Company
|
1,000
|
26
|
On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:
|
Company
|
FMV per Share
|
|
X Company
|
$43
|
|
Y Company
|
15
|
|
Z Company
|
29
|
What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018? Enter a Loss as a negative number.
Question 6: Arundel Company uses aging to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:
|
Dollar Value
|
Age of Account
|
Estimated Collectible
|
|
$280,000
|
< 30 days old
|
98.5%
|
|
65,000
|
30 to 60 days old
|
93.0%
|
|
30,000
|
61 to 120 days old
|
80.0%
|
|
6,000
|
> 120 days old
|
15.0%
|
The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts? Round to nearest whole dollar.
Question 7: Arundel Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $850,000 in credit sales. Arundel assumes that 1.5% of sales will eventually be uncollectible. before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 6,000. What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?
Question 8: Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:
|
Date
|
Activity
|
Quantity
|
Unit Price
|
|
5/1
|
Beginning Inventory
|
175
|
$12.00
|
|
5/5
|
Purchase
|
200
|
$10.50
|
|
5/10
|
Sales
|
300
|
$25
|
|
5/15
|
Purchase
|
200
|
$12.50
|
|
5/20
|
Sales
|
250
|
$28
|
|
5/25
|
Purchase
|
150
|
$13.50
|
Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May. Round to the nearest cent.