Accounting Final Review

Which of the following most likely would be classified as a current liability? a. Dividends payable b. Bonds payable in 5 years c. Three-year notes payable d. Mortgage payable as a single payment in 10 years

Current liabilities are due: a. but not receivable for more than one year. b. but not payable for more than one year. c. and receivable within one year. d. and payable within one year.

Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6%, 9-month note. The entry made by Sadowski Brick Company on January 1 to record the proceeds and issuance of the note is a. Interest Expense............. 22,500 Cash. ..................................477,500 Notes Payable......................500,000 b. Cash....................................500,000 Notes Payable......................500,000 c. Cash................................... 500,000 Interest Expense. ............22,500 Notes Payable......................500,000 d. Cash .................................. 500,000 Interest Expense................... 22,500 Notes Payable......................500,000 Interest Payable .....................22,500

Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January 1. Sadowski Brick Company signs a $500,000, 6%, 9-month note. What entry will Sadowski Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30? a. Notes Payable.................522,500 Cash..........................................522,500 b. Notes Payable.................500,000 Interest Payable.................22,500 Cash..........................................522,500 c.Interest Expense.................22,500 Notes Payable..................500,000 Cash..........................................522,500 d.Interest Expense.................22,500 Notes Payable..................500,000 Interest Expense...................7,500 Cash..........................................522,500

Bonds with a face value of $500,000 and a quoted price of 102¼ have a selling price of a.$601,125. b.$510,125. c.$510,013. d. $511,250.

If the market rate of interest is greater than the contractual rate of interest, bonds will sell a. at a premium. b. at face value. c. at a discount. d. only after the stated rate of interest is increased.

Gomez Corporation issues 900, 10-year, 8%, $1,000 bonds dated January 1, 2017, at 96. The journal entry to record the issuance will show a a. debit to Cash of $900,000. b. credit to Discount on Bonds Payable for $36,000. c. credit to Bonds Payable for $864,000. d. debit to Cash for $864,000.

Five thousand bonds with a face value of $1,000 each, are sold at 102. The entry to record the issuance is a. Cash ...................................................... 5,100,000 Bonds Payable ........................................5,100,000 b.Cash ...................................................... 5,100,000 Premium on Bonds Payable.............100,000 Bonds Payable ......................................5,000,000 c.Cash ...................................................... 5,100,000 Premium on Bonds Payable ................ 100,000 Bonds Payable ...................................... 5,000,000 d.Cash .........................................,............ 5,100,000 Discount on Bonds Payable .................100,000 Bonds Payable .......................................5,000,000

Sparks Company received proceeds of $634,500 on 10-year, 8% bonds issued on January 1, 2016. The bonds had a face value of $600,000, pay interest annually on December 31st, and have a call price of 102. Sparks uses the straight-line method of amortization. Sparks Company decided to redeem the bonds on January 1, 2018. What amount of gain or loss would Sparks report on their 2018 income statement? a. $27,600 gain b. $15,600 gain c. $15,600 loss d. $27,600 loss

Alt Corp. issues 5,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to: a. Common Stock $50,000 and Paid-in Capital in Excess of Stated Value $20,000. b. Common Stock $70,000. c. Common Stock $50,000 and Paid-in Capital in Excess of Par Value $20,000. d. Common Stock $50,000 and Retained Earnings $20,000.

Tomlinson Packaging Corporation began business in 2017 by issuing 50,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2017 balance sheet, Tomlinson Packaging would report a. Common Stock of $500,000. b. Common Stock of $250,000. c. Common Stock of $400,000. d. Paid-in Capital of $330,000.

Johnson Company issued 900 shares of no-par common stock for $17,100. Which of the following journal entries would be made if the stock has no stated value? a. Cash 17,100 Common Stock - No-Par Value 17,100 b. Cash 17,100 Common Stock - No-Par Value 900 Paid-in Capital in Excess of Par 16,200 c. Cash 17,100 Common Stock - No-Par Value 900 Paid-in Capital in Excess of Stated Value 16,200 d. Common Stock - No-Par Value 17,100 Cash 17,100

The following data is available for BOX Corporation at December 31, 2017: Common stock, par $10 (authorized 30,000 shares) $270,000 Treasury stock (at cost $15 per share) $ 1,200 Based on the data, how many shares of common stock are issued? a.30,000. b.27,000. c.29,920. d.26,920.

A corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $700,000. b. Decrease by $400,000. c. Decrease by $700,000. d. Decrease by $300,000.

Dividends in arrears on cumulative preferred stock a. are considered to be a non-current liability. b. are considered to be a current liability. c. only occur when preferred dividends have been declared. d. should be disclosed in the notes to the financial statements.

Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cumulative preferred stock. In 2016, West declared and paid dividends of $4,000. In 2017, West declared and paid dividends of $20,000. How much of the 2017 dividend was distributed to preferred shareholders? a.$9,000. b.$15,000. c. $5,000. d.None of these answer choices are correct.

The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to a. decrease total liabilities and stockholders' equity. b. increase total expenses and total liabilities. c. increase total assets and stockholders' equity. d. decrease total assets and stockholders' equity.

Ace Inc. has 10,000 shares of 4%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2017. What is the annual dividend on the preferred stock? a. $40 per share b. $40,000 in total c. $4,000 in total d. $0.40 per share

Watson, Inc. has 10,000 shares of 5%, $100 par value, cumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2017. There were no dividends declared in 2015. The board of directors declares and pays a $90,000 dividend in 2016 and in 2017. What is the amount of dividends received by the common stockholders in 2017? a. $30,000. b. $40,000. c. $50,000. d. $0.

Nance Corporation's December 31, 2017 balance sheet showed the following: 6% preferred stock, $20 par value, cumulative, 30,000 shares authorized; 20,000 shares issued $400,000 Common stock, $10 par value, 3,000,000 shares authorized; 1,950,000 shares issued, 1,920,000 shares outstanding $19,500,000 Paid-in capital in excess of par value - preferred stock $60,000 Paid-in capital in excess of par value - common stock $28,000,000 Retained earnings $9,650,000 Treasury stock (30,000 shares) $630,000 Nance declared and paid a $85,000 cash dividend on December 15, 2017. If the company's dividends in arrears prior to that date were $24,000, Nance's common stockholders received a. $61,000. b. $48,000. c. $37,000. d. no dividend.

Zoum Corporation had the following transactions during 2017: 1. Issued $250,000 of par value common stock for cash. 2. Recorded and paid wages expense of $120,000. 3. Acquired land by issuing common stock of par value $100,000. 4. Declared and paid a cash dividend of $20,000. 5. Sold a long-term investment (cost $8,000) for cash of $6,000. 6. Recorded cash sales of $800,000. 7. Bought inventory for cash of $320,000. 8. Acquired an investment in Zynga stock for cash of $42,000. 9. Converted bonds payable to common stock in the amount of $1,000,000. 10. Repaid a 6-year note payable in the amount of $440,000. What is the net cash provided by financing activities? a. $(210,000). b. $790,000. c. $(1,210,000). d. $230,000.

Vangaurd Company purchased treasury stock with a cost of $55,000 during 2017. During the year, the company paid dividends of $20,000 and issued bonds payable for proceeds of $876,000. Cash flows from financing activities for 2017 total a. $856,000 net cash inflow. b. $911,000 net cash inflow. c. $75,000 net cash outflow. d. $801,000 net cash inflow.

Assume that the E-Zip Corporation uses the indirect method to depict cash flows. Indicate where, if at all, land purchased for cash would be classified on the statement of cash flows. a. Operating activities section. b. Investing activities section. c. Financing activities section. d. Does not represent a cash flow.

If accounts receivable have increased during the period a. revenues on an accrual basis are less than revenues on a cash basis. b. revenues on an accrual basis are greater than revenues on a cash basis. c. revenues on an accrual basis are the same as revenues on a cash basis. d. expenses on an accrual basis are greater than expenses on a cash basis.

Accounts receivable arising from sales to customers amounted to $120,000 and $105,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $457,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is a.$457,000. b. $472,000. c.$562,000. d.$442,000.

Catalina Company reported a net loss of $15,000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7,500, inventory increased $12,000, accounts payable increased by $15,000, and depreciation expense of $9,000 was recorded. During 2017, operating activities a. used net cash of $4,500. b. used net cash of $10,500. c. provided net cash of $4,500. d. provided net cash of $10,500.

A company had net income of $282,000. Depreciation expense is $26,000. During the year, accounts receivable and inventory increased $15,000 and $40,000, respectively. Prepaid expenses and accounts payable decreased $2,000 and $14,000, respectively. There was also a loss on the sale of equipment of $17,000. How much cash was provided by operating activities? a. $258,000. b. $241,000. c. $318,000. d. $339,000.