1)
2) The ____________________ describes a company’s revenues and expenses over a
period of time due to earnings activities.
3)
What is meant by equivalent units of production, and why are they important when a
process cost accounting system is used?
4) On January 1, a company issued 10%, 10-year bonds payable with a par value of
$720,000. The bonds pay interest each July 1 and January 1. The bonds were sold for
$817,860 cash, which provides the holders an annual yield of 8%. Prepare the issuer’s
journal entry to record the first semiannual interest payment assuming the effective
interest method is used.
5) A company purchases a machine for $1,000,000. The machine has an expected life of
9 years and no salvage value. The company anticipates a yearly net income of $60,000
after taxes of 30% to be received uniformly throughout each year. What is the
accounting rate of return?
6) Identify the classifications for non-influential investments in securities. What are the
accounting basics for non-influential investments in securities, including acquisition,
dividends earned, and disposition?
7) A ____________________ helps in preparing financial statements, is useful in
preparing interim statements, and is helpful in showing the effects of proposed
transactions.
8) Armstrong withdraws from the FAP Partnership. The remaining partners agree to buy
out her share for her capital balance of $35,000. Prepare the journal entry to record the
withdrawal from the partnership.
9) Calculate Cost of Goods Sold for the following two companies: