Acc 557 final exam part 1 (all correct)

1. Ramos Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a

Answer

credit to Gain on Sale of Treasury Stock for $14,000.

credit to Paid-in Capital from Treasury Stock for $4,000.

debit to Paid-in Capital in Excess of Par for $4,000.

credit to Treasury Stock for $18,000.

2. Each of the following decreases retained earnings except

Answer

cash dividend.

liquidating dividend.

stock dividend.

All of these decrease retained earnings.

3. Paid-In Capital in Excess of Stated Value

 Answer

is credited when no-par stock does not have a stated value.

is reported as part of paid-in capital on the balance sheet.

represents the amount of legal capital.

normally has a debit balance.

4. A computer company has $2,800,000 in research and development costs. Before accounting for these costs, the net income of the company is $2,000,000. What is the amount of net income or loss after these R & D costs are accounted for?

 Answer

$800,000 loss

$2,000,000 net income

$0

Cannot be determined from the information provided.

5. A plant asset was purchased on January 1 for $100,000 with an estimated salvage value of $20,000 at the end of its useful life. The current year’s Depreciation Expense is $10,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $50,000. The remaining useful life of the plant asset is

Answer

10 years.

8 years.

5 years.

3 years.

6. Goodwill can be recorded

Answer

when customers keep returning because they are satisfied with the company’s products.

when the company acquires a good location for its business.

when the company has exceptional management.

only when there is an exchange transaction involving the purchase of an entire business.

7. Which of the following statements concerning IFRS and U.S. GAAP is true?

Answer

IFRS permits revaluation of all intangible assets, whereas U.S. GAAP prohibits revaluation of intangible assets.

Gains on exchange of assets when the exchange has commercial substance are recognized under both IFRS and U.S. GAAP.

Changes in depreciation method under IFRS are reported in current and future periods, under U.S. GAAP such changes are treated as prior period adjustments.

All of the choices are true regarding IFRS and U.S. GAAP.

8. A company has the following assets: Buildings and Equipment, less accumulated depreciation of $2,000,000 $9,600,000 Copyrights 960,000 Patents 4,000,000 Timberlands, less accumulated depletion of $2,800,000 4,800,000 The total amount reported under Property, Plant, and Equipment would be

Answer

$19,360,000.

$14,400,000.

$18,400,000.

$15,360,000.

9. Powell’s Courier Service recorded a loss of $9,000 when it sold a van that originally cost $84,000 for $15,000. Accumulated depreciation on the van must have been

Answer

$78,000.

$24,000.

$75,000.

$60,000.

10.On October 1, 2015, Holt Company places a new asset into service. The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2015, balance sheet assuming that Holt Company uses the double-declining-balance method of depreciation?

Answer

$78,000

$90,000

$108,000

$114,000

11. The balance in the Accumulated Depreciation account represents the

Answer

cash fund to be used to replace plant assets.

amount to be deducted from the cost of the plant asset to arrive at its fair market value.

amount charged to expense in the current period.

amount charged to expense since the acquisition of the plant asset.

11. The times interest earned is computed by dividing

Answer

net income by interest expense.

income before income taxes by interest expense.

income before interest expense by interest expense.

income before income taxes and interest expense by interest expense.

13. A $1,000 face value bond with a quoted price of 98 is selling for

Answer

$1,000.

$980.

$908.

$98.

14. Hardy Company has current assets of $95,000, current liabilities of $100,000, long-term assets of $180,000 and long-term liabilities of $80,000. Hardy Company’s working capital and its current ratio are:

Answer

$85,000 and .95:1.

-$5,000 and 1.95:1.

$5,000 and .95:1.

-$5,000 and .95:1.

15. The interest charged on a $50,000, 60-day note payable, at the rate of 6%, would be

Answer

$3,000.

$1,667.

$750.

$500.

16. Beonce Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Beonce uses the straight-line method of amortization. Beonce Company decided to redeem the bonds on January 1, 2015. What amount of gain or loss would Beonce report on its 2015 income statement?

Answer

$9,600 gain

$11,600 gain

$11,600 loss

$9,600 loss

17. Hernandez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2015, at 98. The journal entry to record the issuance will show a

Answer

debit to Cash of $2,000,000.

credit to Discount on Bonds Payable for $40,000.

credit to Bonds Payable for $2,040,000.

debit to Cash for $1,960,000.

18. The market price of a bond is the

Answer

present value of its principal amount at maturity plus the present value of all future interest payments.

principal amount plus the present value of all future interest payments.

principal amount plus all future interest payments.

present value of its principal amount only.

19. Thirty $1,000 bonds with a carrying value of $39,600 are converted into 4,000 shares of $5 par value common stock. The common stock had a market value of $9 per share on the date of conversion. The entry to record the conversion is

Answer

Bonds Payable ………………………………………………………………. 39,600

Common Stock ……………………………………………………… 20,000

Paid-in Capital in Excess of Par…………………………………… 19,600

Bonds Payable ………………………………………………………………. 30,000

Premium on Bonds Payable ………………………………………………. 9,600

Common Stock ……………………………………………………… 30,000

Paid-in Capital in Excess of Par ………………………………….. 3,600

Bonds Payable ………………………………………………………………. 30,000

 Premium on Bonds Payable ………………………………………………. 9,600

Common Stock ……………………………………………………… 20,000

Paid-in Capital in Excess of Par…………………………………… 19,600

Bonds Payable ………………………………………………………………. 39,600

Common Stock ……………………………………………………… 36,000

Paid-in Capital in Excess of Par…………………………………… 3,600

 

 

 

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Paper Helper has assembled a team of highly skilled writers with diverse experience in the online writing circles. Our aim is to become a one stop shop for all your Academic/ online writing. Check out below our amazing service!

Essays

Essay Writing Services

At Paper Helper, we prioritize on all aspects that creates a good grade such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines. The principal purpose of essay writing is to present the author's evaluation concerning a singular subject about which they have made. Since Professionalism is the mother of every success, try our team of experienced writers in helping you complete your essays and other assignments.

Admissions

Admission Papers

You have been trying to join that prestigious institution you long yearned for, but the hurdle of an admission essay has become a stumbling block. We have your back, with our proven team that has gained invaluable experience over time, your chance of joining that institution is now! Just let us work on that essay.How do you write an admission essay? How do you begin the essay? For answers, try Quality Custom Writers Now!

Editing

Editing and Proofreading

Regardless of whether you're pleased with your composing abilities, it's never an impractical notion to have a second eye go through your work. The best editing services leaves no mistake untouched. We recognize the stuff needed to polish up a writing; as a component of our editing and proofreading, we'll change and refine your write up to guarantee it's amazing, and blunder free. Our group of expert editors will examine your work, giving an impeccable touch of English while ensuring your punctuation and sentence structures are top-notch.

Coursework

Technical papers

We pride ourselves in having a team of clinical writers. The stringent and rigorous vetting process ensures that only the best persons for job. We hire qualified PhD and MA writers only. We equally offer our team of writers bonuses and incentives to motivate their working spirit in terms of delivering original, unique, and informative content. They are our resources drawn from diverse fields. Therefore your technical paper is in the right hands. Every paper is assessed and only the writers with the technical know-how in that field get to work on it.

Coursework

College Essay Writing

If all along you have been looking for a trustworthy college essay service provider that provides superb academic papers at reasonable prices, then be glad that you search has ended with us. We are your best choice! Get high-quality college essay writing from our magnificent team of knowledgeable and dedicated writers right now!

Coursework

Quality Assignment/Homework Help

We give the students premium quality assignments, without alarming them with plagiarism and referencing issues. We ensure that the assignments stick to the rules given by the tutors. We are specific about the deadlines you give us. We assure you that you will get your papers well in advance, knowing that you will review and return it if there are any changes, which should be incorporated.

togel macau togel terbesar bocoran admin jarwo data macau