Archives: Quiz
Accounting Chapter 14 Account For Bonds Issued Face Value Discount
101 203) Determine the price of a $200,000 bond issue under each of the following independent assumptions: Maturity Interest Paid Stated Rate Effective Rate 1. 10 years annually 10% 12% 2. 10 years semiannually 10% 12% 3. 20 years semiannually […]
Accounting Chapter 14 Requires Cash Outflow Before Maturity c Often Traded
Copyright ©2018 McGraw-Hill 149) Ocean Adventures issues bonds due in 10 years with a stated interest rate of 6% and a face value of $500,000. Interest payments are made semi-annually. The market rate for this type of bond is 7%. […]
Accounting Chapter 14 Patrick Rach International issued 5% bonds convertible
Copyright ©2018 McGraw-Hill 120) Patrick Rach International issued 5% bonds convertible into shares of the company’s common stock. Rach applies U.S. GAAP. Upon issuance, Patrick Rach International should record: A) The proceeds of the bond issue as part debt and […]
Accounting Chapter 14 D explanation Since Market Value Given For The
Copyright ©2018 McGraw-Hill 81) Which of the following indicates the margin of safety provided to creditors? A) Rate of return on shareholders’ equity. B) Times interest earned ratio. C) Gross margin. D) Debt to equity ratio. Answer: B Difficulty: 1 […]
Accounting Chapter 14 What is the stated annual rate of interest on the bonds
Copyright ©2018 McGraw-Hill 50) Discount-Mart issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10- year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Cash Effective Interest Decrease […]
Accounting Chapter 14 The specific provisions of a bond issue are described
Chapter 14 Bonds and Long-Term Notes True/False Questions 1. The specific provisions of a bond issue are described in a document called a bond indenture. Answer: True Level of Learning: 1 Easy Learning Objective: 14-01 Topic Area: Bond indenture Blooms: […]
Accounting Chapter 13 Hard topic Loss Contingencies Advance Collections For
99 197) In 2018, Cap City Inc. introduced a new line of televisions that carry a two-year warranty against manufacturer’s defects. Based on past experience with similar products, warranty costs are expected to be approximately 1% of sales during the […]
Accounting Chapter 13 This Catchall Statement The Company That any Other
81 179) In its 2018 annual report to shareholders, Ank-Morpork Times Inc. included the following disclosure: Revenue Recognition • Advertising revenue is recognized when advertisements are published, are broadcast, or when placed on the Company’s websites, net of provisions for […]
Accounting Chapter 13 Grossman Received 3000 Refundable Deposits December For
61 155) Note due June 9, 2019. Difficulty: 2 Medium Topic: Accounts payable; Credit line—Commercial paper—Notes; Advance collections — Refundable deposits; Current and noncurrent classification; Loss contingencies; Product warranties and guarantees; Unasserted claims and assessments Learning Objective: 13-02 Account for […]
Accounting Chapter 13 Which of the following may create employer liabilities
Copyright ©2018 McGraw-Hill 101) During the year, L&M Leather Goods sold 1,000,000 reversible belts under a new sales promotional program. Each belt carried one rebate certificate which entitles the customer to a $4.00 cash refund when the rebate is submitted […]
Accounting Chapter 13 Objective 1306 Demonstrate The Appropriate Accounting Treatment
Copyright ©2018 McGraw-Hill 57) Which of the following is not a current liability? A) Accounts payable. B) A note payable due in two years. C) Accrued interest payable. D) Sales tax payable. Answer: B Difficulty: 1 Easy Topic: Current and […]
Accounting Chapter 13 Some liabilities are not contractual obligations
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 13 Current Liabilities and Contingencies 1) Some liabilities are not contractual obligations and may not be payable in cash. Answer: TRUE Difficulty: 1 Easy Topic: Characteristics of liabilities Learning Objective: 13-01 Define […]
Accounting Chapter 12 Also unrealized Holding Gains And Losses Prior Sale
Copyright ©2018 McGraw-Hill 193) On July 1, 2018, Clearwater Inc. purchased 6,000 shares of the outstanding common stock of Mountain Corporation at a cost of $140,000. Mountain had 30,000 shares of outstanding common stock. The total book value and total […]
Accounting Chapter 12 Prepare The Appropriate Journal Entry Record The
81 174) Jackson Company engaged in the following investment transactions during the current year. Feb. 17 Purchased 500 shares of Medical Company common stock for $20 per share plus a brokerage commission of $100. Jackson does not have significant influence […]
Accounting Chapter 12 Measurement Global answers 149 150 151 152 153
Copyright ©2018 McGraw-Hill 128) Dicker Furriers purchased 1,000 bonds of Loose Corporation on January 10, 2017, for $800 per bond and classified the investment as securities available for sale. Loose’s market value was $400 per bond on December 31, 2017, […]
Accounting Chapter 12 Enterprises Report Its Yearend 2018 Balance Sheet
Copyright ©2018 McGraw-Hill 89) When the investor’s level of influence changes, it may be necessary to change from the equity method to another method. When the level of ownership falls from a range of 20% to 50% to less than […]
Accounting Chapter 12 The Value These Holdings Was 400per Bond
Copyright ©2018 McGraw-Hill 52) What is the effect on a company’s cash flows and reported profit from accounting for an investment as a trading security as compared to accounting for it as an available-for-sale security? Effect on Total Cash Flows […]
Accounting Chapter 12 Securities classified as held to maturity could be reported
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 12 Investments 1) Securities classified as held to maturity could be reported as either current or long-term in a classified balance sheet, depending upon their maturity dates. Answer: TRUE Difficulty: 1 Easy […]
Accounting Chapter 11 Discuss The Primary Differences Between Us GAAP And
Copyright ©2018 McGraw-Hill 205) Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Required: Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these […]
Accounting Chapter 11 December 28 2018 And December 29 2017
Copyright ©2018 McGraw-Hill 184) The table below contains data on depreciation for equipment. Required: Fill in the missing data in the table. Acquisition Date 1/1/2016 1/1/2016 1/1/2016 1/1/2017 1/1/2017 Cost $100,000 $100,000 $330,000 Accumulated Depreciation1 2/31/2018 $90,000 Depreciation 2017 $10,000 […]
Accounting Chapter 11 Discuss The Accounting Treatment Repairs And Maintenance
61 Listed below are five terms followed by a list of phrases that describe or characterize five of the terms. Match each phrase with the correct term. A) Triggers commencement of depreciation. B) Cost less accumulated depreciation. C) Expenditures made […]
Accounting Chapter 11 If a material error is discovered in an accounting
Copyright ©2018 McGraw-Hill 94) Broadway Ltd. purchased equipment on January 1, 2016, for $800,000, estimating a five- year useful life and no residual value. In 2016 and 2017, Broadway depreciated the asset using the straight-line method. In 2018, Broadway changed […]
Accounting Chapter 11 Jennings indicates that it uses straight-line depreciation
Copyright ©2018 McGraw-Hill 54) On September 30, 2018, Bricker Enterprises purchased a machine for $200,000. The estimated service life is 10 years with a $20,000 residual value. Bricker records partial-year depreciation based on the number of months in service. Depreciation […]
Accounting Chapter 11 The three factors in cost allocation of a depreciable asset
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 11 Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition 1) The three factors in cost allocation of a depreciable asset are service life, allocation base, and allocation method. Answer: TRUE […]
Accounting Chapter 10 Jake Reese The Company’s Controller He told You
Copyright ©2018 McGraw-Hill 172) Kerry, Inc., exchanged land and cash of $8,000 for equipment. The land had a book value of $55,000 and a fair value of $60,000. Required: Prepare the journal entry to record the exchange. Assume the exchange […]
Accounting Chapter 10 Schefter Obligated Restore The Land Its Original
Copyright ©2018 McGraw-Hill 159) Rockport Refinery acquired all the outstanding common stock of Stellman Corporation for $68,000 in cash. The book values and fair values of Stellman’s assets and liabilities were as follows: Book Value Fair Value Current assets $24,000 […]
Accounting Chapter 10 Asset Categories And Types Assets Costs Capitalized blooms
Copyright ©2018 McGraw-Hill Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. A) Approximation of average outstanding debt if all construction funds were […]
Accounting Chapter 10 the Crocus Company began construction of a new manufacturing
Copyright ©2018 McGraw-Hill 79) On June 1, 2017, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2018. Expenditures on the project were as follows ($ in millions): July 1, 2017 54 […]
Accounting Chapter 10 Which of the following should be included in the journal
Copyright ©2018 McGraw-Hill 43) Braxwell Corporation acquired the following assets associated with a manufacturing facility for a lump-sum price of $9,000,000. According to independent appraisals, the fair values were $4,000,000, $2,000,000, $3,000,000, and $1,000,000 for the building, patent, land, and […]
Accounting Chapter 10 Property, plant, and equipment and intangible assets
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 10 Property, Plant, and Equipment and Intangible Assets: Acquisition 1) Property, plant, and equipment and intangible assets are long-term, revenue producing assets. Answer: TRUE Difficulty: 1 Easy Topic: Asset categories and types […]
Accounting Chapter 9 Cornhusker Can Co. uses the conventional retail method
Copyright ©2018 McGraw-Hill 167) Cornhusker Can Co. uses the conventional retail method to estimate ending inventories. The following data has been summarized for year ended December 31, 2018: Cost Retail Inventory, January 1 $ 80,000 $ 126,000 Purchases 166,000 244,000 […]
Accounting Chapter 9 Hard topic Retail Inventory Method Average Cost learning
Copyright ©2018 McGraw-Hill 150) Required: Determine the reported inventory value assuming the lower of cost or market rule is applied to categories of feed products. 81 Answer: Classes of Inventory Product Cost RC NRV NRV−NPM Demand Market Lower of Cost […]
Accounting Chapter 9 Retail Inventory Method Dollar value LIFO Change
Copyright ©2018 McGraw-Hill Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. A) Always deducted after arriving at the calculation of the cost-to-retail […]
Accounting Chapter 9 FIFO The company Had Used The FIFO Method
Copyright ©2018 McGraw-Hill 70) When computing the cost-to-retail percentage for the average cost retail method, included in the denominator are: A) Net markups and net markdowns. B) Neither net markups nor net markdowns. C) Net markups, but not net markdowns. […]
Accounting Chapter 9 Data related to the inventories of Mountain Ski Equipment
Copyright ©2018 McGraw-Hill 43) Data related to the inventories of Mountain Ski Equipment and Supplies is presented below: Skis Boots Apparel Supplies Selling price $ 180,000 $ 150,000 $ 120,000 $ 60,000 Cost 128,000 133,000 90,000 48,000 Replacement cost 120,000 […]
Accounting Chapter 9 For companies that use FIFO or average cost
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 9 Inventories: Additional Issues 1) For companies that use FIFO or average cost, inventory is valued at the lower of cost or net realizable value at the end of the reporting period. […]
Accounting Chapter 8 ECT Co Would Report Its Yearend Balance
Copyright ©2018 McGraw-Hill 169) The following information comes from the 2013 Occidental Petroleum Corporation annual report to shareholders: NOTE 4 INVENTORIES Net carrying values of inventories valued under the LIFO method were approximately $205 million and $185 million at December […]
Accounting Chapter 8 what amount of before-tax LIFO liquidation profit or loss
Copyright ©2018 McGraw-Hill 153) Jan. 1 accounts payable Jan. 1 inventory Dec. 31 accounts payable Dec. 31 inventory Cash paid to inventory suppliers Cost of goods sold Net purchases 80 72 606 583 621 81 Answer: Jan. 1 accounts payable […]
Accounting Chapter 8 Prepare journal entries to record the purchases and sales
Copyright ©2018 McGraw-Hill 120) Gross profit ratio Difficulty: 1 Easy Topic: Types of inventory; Included in inventory ‒ Net purchases; Cost flow in general; Inventory management ‒ Ratios Learning Objective: 08-01 Explain the types of inventory and the differences between […]
Accounting Chapter 8 Thompson TV and Appliance reported the following in its
Copyright ©2018 McGraw-Hill 79) Thompson TV and Appliance reported the following in its 2018 financial statements: 2018 Sales $ 420,000 Cost of goods sold: Inventory, January 1 82,000 Net purchases 340,000 Goods available for sale 422,000 Inventory, December 31 86,000 […]
Accounting Chapter 8 Fulbright Corp. uses the periodic inventory system
Copyright ©2018 McGraw-Hill 50) Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 40 units at $100 70 units at $80 170 units at $60 […]
Accounting Chapter 8 Physical counts of inventory are never made
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 8 Inventories: Measurement 1) Physical counts of inventory are never made with perpetual inventory systems. Answer: FALSE Difficulty: 1 Easy Topic: Perpetual inventory system Learning Objective: 08-01 Explain the types of inventory […]
Accounting Chapter 7 The Direct Write off Method Not Permitted GAAP
Copyright ©2018 McGraw-Hill 199) On December 1, 2018, General Mole borrowed $400,000 at 12% interest and pledged $500,000 in accounts receivable as collateral. Additionally, General Mole was charged a finance fee equal to 1% of the accounts receivable assigned. At […]
Accounting Chapter 7 Prime Company sold 50 air-conditioning units to L&P Heating
81 174) On February 14, 2018, Prime Company sold 50 air-conditioning units to L&P Heating and Cooling. The units list for $700 each, but L&P was granted a 30% trade discount. All of Prime’s sales are subject to terms 2/10, […]
Accounting Chapter 7 Cromartie Furniture established a $150 petty cash fund
Copyright ©2018 McGraw-Hill 121) On July 1, 2018, Cromartie Furniture established a $150 petty cash fund. A check for $150 was made out to the petty cash custodian. During July, the petty cash custodian paid the following bills from the […]
Accounting Chapter 7 San Mateo Company had the following account balances
Copyright ©2018 McGraw-Hill 86) San Mateo Company had the following account balances at December 31, 2018, before recording bad debt expense for the year: Accounts receivable $ 1,400,000 Allowance for uncollectible accounts (credit balance) 22,000 Credit sales for 2018 1,950,000 […]
Accounting Chapter 7 Cherokee Industries sold materials to a customer for$8,000
Copyright ©2018 McGraw-Hill 50) On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Cherokee uses the net method of accounting for cash discounts. What entry would Cherokee make […]
Accounting Chapter 7 Cash equivalents would include investments in marketable
Copyright ©2018 McGraw-Hill Intermediate Accounting, 9e (Spiceland) Chapter 7 Cash and Receivables 1) Cash equivalents would include investments in marketable equity securities as long as management intends to sell the securities in the next three months. Answer: FALSE Difficulty: 1 […]
Accounting Chapter 6 December 31required Determine The Price The Bonds
Copyright ©2018 McGraw-Hill 133) MBI Company’s largest computer has a cash selling price of $200,000. A customer wishes to buy the computer on a lease purchase plan over five years, with the first payment to be made at the inception […]
Accounting Chapter 6 Zero coupon Bonds Pay Cash Interest During The
Copyright ©2018 McGraw-Hill 113) Touche Manufacturing is considering a rearrangement of its manufacturing operations. A consultant estimates that the rearrangement should result in cash savings of $6,000 the first year, $10,000 for the next two years, and $12,000 for the […]