Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting Exam -

Q1. Warner Company sold $4,000,000 of 6%, 10-year bonds on January 1st, 2013, for $3,454,800. The market interest rate is 8%, and interest will be paid each January 1st. The effective-interest method of amortization is used. The journal entry to accrue interest expense on December 31, 2013 will include a

a) debit to Premium on Bonds Payable for $112,712

b) credit to Discounts on Bonds Payable for $112, 712

c) credit to Discount on Bonds Payable for $36,384

d) debit to Premium on Bonds Payable for $36,38

Q2. Thayer Company purchased a building on January 2 by signing a long-term $2,520,000 mortgage with monthly payments of $23,100. The mortgage carries an annual interest rate of 10%. The amount owed on the mortgage after the first payment will be

a) $2,520,000

b) $2,517,900

c) $2,499,000

d) $2,496,900

Q3. Dawson Company issued 600 shares of $2 par value common stock for $5,400. Which of the following journal entries would be made to record this sale of stock?

a) Cash                                                                 5,400

Common Stock                                                                 5,400

b) Cash                                                                 5,400

Common Stock                                                                 1,200

Additional Paid in Capital                              4,200

c) Common Stock                             5,400

Additional Paid in Capital                              1,200

Cash                                                                      4,200

d) Common Stock                            5,400

Cash                                                                      5,400

Q4. The following data is available for BOX Corporation at December 31, 2014:

Common Stock, par $10 (authorized 30,000 shares) $250,000

Treasury stock, (80 shares) $ 1,200

Based on the data, how many shares of common stock are outstanding?

a) 30,000

b) 25,000

c) 29,920

d) 24,920

Q5. Blanchard Enterprises borrows $160,000 from a bank on January 1, 2013 and will repay this loan by making semiannual payments of $16,073.93. The annual interest rate charged for this 6-year loan is 6%. Which is the correct journal entry to record the first semiannual payment made on June 30, 2013?

a) Interest Expense        $16,073.93

Cash                                                      16,073.93

b) Note Payable               16, 073.93

Cash                                                      16,073.93

c) Interest Expense         4,800.00

Note Payable                     11,273.93

Cash                                                      16,073.93

d) Interest Expense        964.43

Cash                                                      964.93

Q6. Accounts Receivable for Wrenn, Inc. was $80,000 at the beginning of the year, and $70,000 at the end of the year. Sales on account for year totaled $512,000. Assuming there were no write-off of uncollectible accounts, the amount of cash collected through Accounts Receivable this year is:

a) $512,000

b) $522,000

c) $502,000

d) $10,000

Q7. Columbia Footwear had accounts Payable of $21,000 at the beginning of the year and $23,000 at the end of the year. During the year Columbia made purchases of inventory on account of $318,000. What is the amount of cash paid to supplies?

a) $313,000

b) $316,000

c) $311,000

d) $2,000

Q8. Zoum Corporation had the following transactions during 2014:

Issued $125,000 of par value common stock for cash

Recorded and paid wages expense of $60,000

Purchased land for $50,000 cash

Declared and paid a cash dividend of $10,000

Recorded cash sales of $400,000

Bought inventory for cash of $160,000

Paid interest expense of $1,000

Purchased treasury stock for $70,000

Repaid a long-term note payable in the amount of $30,000

What is the net cash provided by operating activities?

a) $180,000

b) $179,000

c) $160,000

d) $176,000

Q9. Paupet & Co. has the following cash flow information:

Payment of Operating Expenses $78,000

Payment of Dividends 2,000

Repayment of Long Term Note Payable 5,000

Payment of Maintenance Expense 15,000

Purchase of Delivery Vehicle 25,000

Purchase of Treasury Stock 10,000

Sale of Preferred Stock 60,000

Receipt of Interest Income 10,000

Cash sales 100,000

What is the net cash flow from Financing Activities?

a) $2,000

b) $7,000

c) $60,000

d) $17,000

e) $43,000

Q10. Moses & Apple, Inc. has the following cash flow information:

Payment of Operating Expenses $48,000

Payment of Dividends 2,000

Repayment of Long Term Note Payable 5,000

Payment of Maintenance Expense 15,000

Purchase of Delivery Vehicle 25,000

??? of Delivery Vehicle 10,000

??? of Preferred Stock 60,000

????? of Interest Income 10,000

Cash Sales 100,000

What is the net cash flow from Investing Activities [parenthesis indicates negative number]?

a) ($25,000)

b) ($15,000)

c) $15,000

d) $10,000

e) ($5,000)

Q11. Parks Blair invested $5,000 at 8% annual interest and left the money invested without withdrawing any of the interest for 15 years. At the end of the 15 years, Parks decided to withdraw the accumulated amount of money. To the closest dollar, which amount would he withdraw, assuming that the investment earns interest compounded annually?

a) $42,797

b) $75,000

c) $1,576

d) $15,861

Q12. If $22,000 a deposited in a saving account at the end of each year and the account pays interest of 5% compounded annually, what will be the balance of the account at the end of 10 years?

a) $23,000

b) $231,000

c) $276,714

d) $303,600

Q13. If the single amount of $5,000 is to be received in 3 years and discounted at 6%, its present value is

a) $4,198.10

b) $4,717.30

c) $4,450.00

d) $4,395.45

Q14. If a bond has a stated rate of interest of 6% but the market rate of interest is 8% the bond

a) will sell at a discount (less than face value)

b) will sell at a premium (more than face value)

c) many sell at either a premium or a discount

d) will sell at its face value

Q15. Valente Company is about to issue $3,000,000 of 5-year, 10% bonds. Interest will be paid semi-annually. The market interest rate for such securities is 8%. How much can Valente expect to receive from the sale of these bonds?

a) $2,768,338

b) $3,000,000

c) $3,243,315

d) $3,231,660

Q16. Collins Products, Inc. is about to issue a 10%, 10-year, $100,000 Bond Payable when the market interest rate is 12%. Interest will be paid semi-annually. How much can Collins expect to receive from the sale of these bonds?

a) $97,795

b) $100,000

c) $112,462

d) $88,530

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92573466
  • Price:- $20

Priced at Now at $20, Verified Solution

Have any Question?


Related Questions in Accounting Basics

Question - a fire destroys all of the merchandise of

Question - A fire destroys all of the merchandise of Bridgeport Company on February 10, 2017. Presented below is information compiled up to the date of the fire. Inventory, January 1, 2017$395,100 Sales revenue to Februa ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

Question - concord could borrow 107700 from its bank to

Question - Concord could borrow $107,700 from its bank to finance the purchase at an annual rate of 10%. Should Concord borrow from the bank or use the manufacturer's payment plan to pay for the equipment?

Question - ivanhoe inc manufactures cycling equipment

Question - Ivanhoe Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a c ...

Question - on december 31 2017 sage company signed a

Question - On December 31, 2017, Sage Company signed a $1,023,100 note to Pronghorn Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in ...

Question upload a document that provides the following

Question: Upload a document that provides the following information. 1) Give a simple, nontechnical 1 sentence answer to the question posed (this is not a writing assessment, focus on research). 2) What is (are) the Code ...

Question - bates company issued 1000000 10-year bonds and

Question - Bates Company issued $1,000,000, 10-year bonds and agreed to make annual sinking fund deposits of $78,000. The deposits are made at the end of each year into an account paying 6% annual interest. What amount w ...

Question - canberry corporation had net income of 116000

Question - Canberry Corporation had net income of $116,000, beginning total assets of $856,000 and ending total assets of $760,000. Calculate its return on total assets? 738% 15.3% 655% 14.4% 13.6%

Question - stockman corp purchased 10 1000 6 bonds of

Question - Stockman Corp. purchased 10, $ 1,000 6% bonds of Energy Corporation when the market rate of interest was 14%. Interest is paid semiannually on the bonds, and the bonds will mature in six years. Using the PV fu ...

Question - a company incurred the following transactions

Question - A company incurred the following transactions: 1. Wages of $2,650 accrued at the end of the prior fiscal period were paid this fiscal period. 2. Real estate taxes of $7,100 applicable to the current period hav ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As