1) Explain the recording and posting processes.
2) No-par stock to which the directors assign a value per share is called
_____________________.
3) Community Technical College allocates administrative costs to its teaching
departments based on the number of students enrolled, while maintenance and utilities
are allocated based on square feet of classrooms. Based on the information below, what
is the total amount of expenses allocated to each department (rounded to the nearest
dollar) if administrative costs for the college were $150,000, maintenance expenses
were $70,000, and utilities were $85,000?
4) Explain why ethics are an integral part of accounting.
5) A company’s store was destroyed by a fire on February 10 of the current year. The
only information for the current period that could be salvaged included the following:
Beginning inventory, January 1: $34,000
Purchases to date: $118,000
Sales to date: $140,000
Historically, the company’s gross profit ratio has been 30%. Estimate the value of the
destroyed inventory using the gross profit method.
6) A company exchanged its used machine for a new machine in a transaction that had
commercial substance. The old machine cost $70,000, and the new one had a cash price
of $95,000. The company had taken $60,000 depreciation on the old machine and was
allowed a $2,500 trade-in allowance and the balance of $92,500 was paid in cash. What
gain or loss should be recorded on the exchange?
7) Refer to the following information about the Painting Department in the Richardson
Factory for the month of June. Richardson Factory uses the weighted-average method
of inventory costing.
Compute the total cost of all units that were completed and transferred to finished
goods during June. Compute the total cost of the ending goods in process inventory.
8) In order to be classified as an extraordinary gain or loss, the item must be both (1)
_________________________ and (2) _______________________.
9) What is the balance sheet? What is its purpose?
10) A company paid a cash dividend of $0.44 per share during the current year, and
reported 18,000 shares of common stock issued, and 2,000 common shares in treasury
stock during the current year. The year-end market price per share was $27.50.
Calculate the following: (1) total amount of cash dividends paid to common
shareholders, and (2) dividend yield.