Which of the following show the proper effect of a stock split and a stock dividend?
Answer:
Internal control over cash disbursements is more effective when payments are made by
______________, rather than by ______________.
Answer:
The financial information below was taken from the annual financial statements of Falls
Company.
Instructions
Calculate the following ratios for Falls Company for 2013. Round to one decimal place.
1> Return on assets.
2> Average collection period of receivables in days.
3> Current ratio.
4> Debt to assets ratio.
5> Inventory turnover.
6> Profit margin.
7> Asset turnover.
8> Return on common stockholders’ equity.
Answer:
NMadisun Company issued common stock for proceeds of $20,000 during 2014. The
company paid dividends of $5,000. The company also issued a long-term note payable
for $35,000 in exchange for equipment during the year. The company sold treasury
stock that had a cost of $3,000 for $9,000.
Instructions
Compute net cash flows from financing activities.
Answer:
Under the lower-of-cost-or-market basis, market is defined as current replacement cost.
Answer:
Neko Case decides to open a cleaning and laundry service near the local college
campus that will operate as a corporation. Analyze the following transactions for the
month of June in terms of their effect on the basic accounting equation. Record each
transaction by increasing (+) or decreasing (‘“) the dollar amount of each item affected.
Indicate the new balance of each item after a transaction is recorded. It is not necessary
to identify the cause of changes in stockholders’ equity.
Transactions
(1) Issued stock in exchange for $20,000 cash on June 1.
(2) Purchased equipment for $5,000 paying $3,000 in cash and the remainder due in 30
days.
(3) Purchased supplies for $1,200 cash.
(4) Received a bill from College News for $300 for advertising in the campus
newspaper.
(5) Cash receipts from customers for cleaning and laundry amounted to $2,400.
(6) Paid salaries of $600 to student workers.
(7) Billed the Lion Soccer Team $450 for cleaning and laundry services.
(8) Paid $300 to College News for advertising that was previously billed in Transaction
4.
(9) Paid dividends of $1,200.
(10) Incurred utility expenses for month on account, $500.
Answer:
As part of a Careers in Accounting program sponsored by accounting
organizations and supported by your company, you will be taking a group
of high-school students through the accounting department in your
company. You will also provide them with various materials to explain the
work of an accountant. One of the materials you will provide is the
Stockholders’ Equity section of a recent balance sheet.
Prepare a sentence or two explaining each major section: Common Stock,
Additional Paid-in Capital, and Retained Earnings. You should try to be
brief but clear.
Answer:
Cost and fair value data for the trading securities of McMahon Company at December
31, 2014, are $110,000 and $85,000, respectively. Which of the following correctly
presents the adjusting journal entry to record the securities at fair value?
Answer:
Prepare the necessary journal entries for the following transactions for Kennedy Co.
Answer: