Reference no: EM131573259

Question 1. A company has $123,000 in Assets and $65,000 in Liabilities.

How much does the company have in Stockholders' Equity?

Question 2. Beginning Retained Earnings are $65,000, sales are $29,500,expenses are $33,000, and dividends paid are $3,500. Howmuch is the amount in ending Retained Earnings?

Question 3. The Notes Payable account began with a zero balance andthen had the following changes: increase of $500, increase of$200, decrease of $550, and increase of $250. What is thefinal balance in the Notes Payable account, and is it a debit or credit?

Question 4. The trial balance for Motor Work, Inc. contains the following balances:

What is the amount of total debits for this trial balance?

Question 5. On January 1, 2014, a company paid $36,000 for a machine with a salvage value of$4,000. If the company uses straight-line depreciation for 10 years, what is thedepreciation expense for 2014?

Question 6. The total revenues of $6,500, total expenses of $3,500, and dividends of $500 wererecorded in the closing entries for September. What is the net change in RetainedEarnings for the month?

Question 7. Cosmo Co. purchases goods for resale from Galaxy, Inc. The amount of a recent purchaseis $12,500 with terms of 3/10, n/30. Cosmo later returns $500 worth of the goods. Underthe perpetual inventory method, what is the journal entry to record the return?

Question 8. A company has net sales of $126,000, cost of goods sold of $72,000, operatingexpenses of $38,000, and other expenses of $3,000. What is the company's operating income?

Question 9. Olympic Enterprises has the following inventory data:

  Date                                                     Quantity                                 Unit cost

 June 1 Beginning inventory             5                                              $52

 June 4 Purchase                                10                                           $55

 June 7 Sale                                         12

 June 11 Purchase                              9                                              $58

 June 14 Sale                                       8

Assuming average cost, what is the cost of goods sold for the June 7 sale?

Question 10. A company has $8,200 in net sales, $1,100 in gross profit, $2,500 in ending inventory,and $2,000 in beginning inventory. What is the company's cost of goods sold?

Question 11. Goods available for sale total $25,000, beginning inventory is $8,000, ending inventoryis $12,000, and cost of goods sold is $10,000. How many days is the days-sales-ininventory?

Question 12. Identify the following two schemes:

1. An employee gives a false refund and pockets the cash.

2. An employee receives a check from a customer, endorses it, and then cashes it.

Question 13. Which part of the Fraud Triangle relates to committing a fraud because one feels that itwill be easy to do?

Question 14. A company has $317,000 in credit sales. The company uses the allowance method toaccount for uncollectible accounts, and the Allowance for Doubtful Accounts now hasan $8,150 debit balance. If the company estimates 6% of credit sales will be uncollectible,what is the amount of the journal entry for the estimated uncollectibleaccounts?

Question 15. Bestway, Inc. had credit sales of $142,000 for the period. The balance in Allowancefor Doubtful Accounts is a debit of $643. If Bestway ages accounts receivable anddetermines estimated uncollectible accounts to be $2,840, what is the requiredjournal entry to record estimated uncollectible accounts?

Question 16. After four years, a machine had an accumulated depreciation of $38,000. The machineoriginally had an anticipated life of eight years and a salvage value of $5,000. If thecurrent book value after four years is $43,000 and the machine has only two years ofusable life left, how much will be depreciated in year five and in year six using thestraight-line method of depreciation, and assuming the salvage value is still $5,000?

Question 17. Equipment costing $118,000 has accumulated depreciation of $92,000. The equipmentis a trade-in for new equipment costing $187,000. If the trade-in value received forthe old equipment is $30,000, what is the journal entry to record this transaction?

Question 18. On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requiressemi-annual payments of $7,735 on June 30 and December 31 of each year. What isthe journal entry to record the second semi-annual payment (round interest calculationto the nearest dollar?

Question 19. $200,000 of 6%, 25-year bonds were sold for $190,000 on January 1. The bondsrequire semi-annual interest payments on June 30 and December 31. What is thejournal entry to record the June 30 interest payment on the bonds?

Question 20. Liberty Company declared a $40,000 cash dividend to shareholders. The company has5,000 shares of $20-par, 6% preferred stock and 10,000 shares of $15-par commonstock. The preferred stock is cumulative. How much will be distributed to the preferredand common stockholders on the date of payment if the preferred stock is $12,000in arrears?

Question 21. Arc Electric, Inc. has 400,000 shares of $10-par common stock outstanding. Theyhave declared a 5% stock dividend. The current market price of the common stock is$18/share. What is the amount that will be credited to Paid-in Capital in Excess of ParCommon Stock on the date of declaration?

Question 22. Prestige Auto's records show net income of $30,000, depreciation expense of $10,000,and cash dividends paid of $5,000. Using the indirect method, determine the cash flowfrom operating activities on the cash flow statement.

Question 23. Operating expenses for the year, other than depreciation, were $563,000. Accruedexpenses decreased by $47,000. Using the direct method, determine the cash paymentsfor operating expenses to be reported on the cash flow statement.

Question 24. A company has $56,000 in cash, $12,000 in accounts receivable, $25,000 in shortterminvestments, and $100,000 in merchandise inventory. The company also has$60,000 in current liabilities. What is the company's quick ratio (rounded to the nearesthundredth)?

Question 25. If sales are $100,000, net income is $22,700, beginning stockholders' equity is$88,000, and ending common stockholders' equity is $84,000, what is the return on equity?