Part I: 25 Multiple choice questions @ 2 points each = 50 points
1. Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton Company will A) debit Land for $200,000. B) credit Common Stock for $192,000. C) debit Land for $192,000. D) credit Paid-In Capital in Excess of Par for $196,000.2. Victory 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 A) credit to Gain on Sale of Treasury Stock for $14,000. B) credit to Paid-in Capital from Treasury Stock for $4,000. C) debit to Paid-in Capital in Excess of Par for $4,000. D) credit to Treasury Stock for $18,000.3. Which of the following show the proper effect of a stock split and a stock dividend?4. Dabney, Inc., has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $60,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014? A) $0 B) $25,000 C) $10,000 D) $35,0005. A $600,000 bond was retired at 98 when the carrying value of the bond was $590,000. The entry to record the retirement would include a A) gain on bond redemption of $10,000. B) loss on bond redemption of $10,000. C) loss on bond redemption of $2,000. D) gain on bond redemption of $2,000.Page 3 of 106. The following data are available for Two-off Company.Increase in accounts payable$120,000Increase in bonds payable300,000Sale of investments150,000Issuance of common stock160,000Payment of cash dividends90,000Net cash provided by financing activities is: A) $180,000. B) $370,000. C) $360,000. D) $420,000.7. The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities? A) $200,000 B) $235,000 C) $220,000 D) $255,0008. If a company reports a net loss, it A) may still have a net increase in cash. B) will not be able to pay cash dividends. C) will not be able to get a loan. D) will not be able to make capital expenditures.9. A creditor would be most interested in evaluating which of the following ratios? A) Asset turnoverB) Earnings per share C) Payout ratio
Assignment__Questions.pdf (189.4 KB)
