AC2001 1. The unadjusted trial balance amount for the Prepaid Rent account on December 31, 2013, is $3,600.

AC2001 1. The unadjusted trial balance amount for the Prepaid Rent account on December 31, 2013, is $3,600.

1. The unadjusted trial balance amount for the Prepaid Rent account on December 31, 2013, is $3,600. The rental is for extra office space for 12 months. The rental started on April 1, 2013 and the $3,600 rental fee was paid on that date. The required adjusting entry on December 31, 2013 would require aDebit to (Account Title)For $ (Amount)2. Ned Sales had net credit sales in June of $100,000. On June 30, 2013 (before any adjustments) Accounts receivable are $20,000 and Allowance for Doubtful Accounts has a $100 debit balance. If Ned Sales estimates bad debt losses as 4% of net credit sales, the net realizable value of the Accounts Receivable AFTER the June 30, 2013 adjusting entry is:$ (Amount)3. If Mel Corporation sells 60,000 shares of its new $1 par value common stock to investors for $14 per share, the required journal entry would require a credit to Common Stock for:$ (Amount)4. Jen Industries purchased specialized equipment on July 1, 2011, that cost $85,000, has a residual value of $5,000, and a useful life of four years. Jen uses the sum of the years digits method. The depreciation expense for the year 2013 is:$ (Amount) 5. On September 1, 2013, five months rent income totaling $5,000 was received on an office rental. The advance collection was originally recorded by a credit to Rental Revenue. The required adjusting entry at December 31, 2013 would require a:Debit to (Account Title)For $ (Amount)USE THE FOLLOWING INFORMATION FOR QUESTIONS 6 and 7:Janet Inc., has an inventory for notebooks on January 1 and purchases of this item during 2013 as follows:Jan. 1Beginning inventory. 500 units @ $3.00Mar. 5Purchase. 600 units @ $4.00 Sept. 3Purchase. 900 units @ $5.00 Nov. 4Purchase. 700 units @ $7.00 During 2013, Janet sold 1,200 notebooks at $10.00 each. Assume Janet uses a Periodic Inventory System.6. Using FIFO, compute the cost of goods sold on December 31, 2013. $. 7. Using LIFO, compute the cost of the ending inventory on December 31, 2013. $. 8. During a period of falling prices, the cost flow assumption that will generally result in the highestamount of income taxes paid is: (State correct Inventory Cost Flow Method) 9. How would this years total owners equity be affected by a common stockĀ (not cash) dividend that had been declared and distributed this year?a. Decrease b. No effect c. cannot tell based on this information d. Increase (Enter your multiple choice answer A, B, C, D for question 9)(USE THE FOLLOWING INFORMATION FOR QUESTIONS 10 and 11)Bill Company (which uses a periodic inventory system) has the following account balances after adjusting entries at December 31, 2013:Cash $ 220,000Depreciation Expense 20,000Paid-in Capital from Treasury Stock Transactions, Common 50,000Other Operating Expenses 45,000Sales Discounts 5,000Accumulated Depreciation- Equipment 30,000Treasury Stock, Common (22,000 shares) 42,000Preferred Stock 6% ($10 par) 85,000Merchandise Inventory (1/1/2013) 100,000Equipment 170,000Accounts Receivable 90,000Paid-in Capital in Excess of Par Value, Preferred 27,000Purchases 700,000Interest Expense 20,000Unearned Revenue 8,000Purchases Returns and Allowances 15,000Salary Expense 80,000Paid-in Capital in Excess of Par Value, Common 90,000Dividends 10,000Common Stock ($1 par) 167,000Sales 940,000Rent Expense 67,000Bonds Payable (due 2042) 50,000Accounts Payable 27,000Retained Earnings (1/1/2013) 80,000Merchandise inventory on December 31, 2013 is $130,00010. The total stockholders equity at December 31, 2013 is: $ (amount) 11. The net income for 2013 is: $ (amount)QUESTIONS 12- AND 13 ARE BASED ON THE FOLLOWING INFORMATION:The stockholders equity accounts (normal balances) of the Vermont Corp. as of December 31, 2013, appeared as follows:Common stock, $1 par (100,000 shares authorized, 64,000 shares issued) $64,000Preferred Stock, 10%, $5 Par (40,000 shares authorized, 10,000 shares issued) 50,000Paid-in capitalexcess over par value, common 70,000Retained earnings 36,000Treasury Stock (3,000 shares of common stock) 8,00012. A stockholders equity section prepared at December 31, 2013, would report total stockholders equity of: $.13. At December 31, 2013, the book value per share of the common stock is(Assume no preferred dividends are in arrears) (round to nearest cent)$.USE THE FOLLOWING INFORMATION FOR QUESTIONS 14 16.Selected balance sheet account balances are: MO COMPANYDecember 312013 2012Cash $ 200,000 $ 300,000Accounts Payable 45,000 60,000Accounts Receivable 125,000 140,000Salaries Payable 8,000 4,000Land 120,000 140,000Merchandise Inventory 130,000 150,000Prepaid Rent 52,000 45,000Income statement items for the year are:Sales $800,000Cost of Goods Sold 380,000Salary Expense 90,000Depreciation Expense 40,000Rent Expense 100,00014. Cash payments to suppliers for merchandise inventory during 2013 is$ 15. Cash collections from customers during 2013 is $ 16. Cash payments to employees for salary during 2013 is $ USE THE FOLLOWING INFORMATION FOR QUESTIONS 17 20.Assume that the following information is relevant for one of the bond issues of Fran Company:Face value $900,000Bond term 20 yearsStated interest rate 10% (paid semiannually)Market interest rate 8%Issue date July 1, 2013Interest payment dates June 30 and December 31Present Value Factors: 4% 5% 8% 10%Present value of 1 for 20 periods 0.456 0.377 0.215 0.149Present value of 1 for 40 periods 0.208 0.142 0.046 0.022Present value of annuity for 20 periods 13.590 12.462 9.818 8.514 Present value of annuity for 40 periods 19.793 17.159 11.925 9.779(Use only the present value factors shown above to make calculations.)17. On July 1, 2013, the amount the bonds should sell for is$18. The total amount of bond interest to be paid in cash over the life of the bonds is:$19. The amount of interest expense for 2013 using the effective interest method of amortization is$ (show exact amount including cents)20. The amount of bond interest paid in cash for 2014 is$


Comments are closed.