1) Slate Corporation had the following balances in its stockholders’ equity accounts at
December 31, 2015:
The following transactions occurred during 2016:
Based on the above information, prepare a statement of stockholders’ equity for 2016.
Use the form below.
2) Grayson Company had 8,700 units in beginning inventory with accumulated costs
for direct materials of $17,900, $16,500 direct labor, and $13,200 of overhead. During
July, the company completed and transferred 50,000 units to finished goods. Costs
incurred in the current period included $45,000 of direct materials, $58,500 of direct
labor, and $46,800 of factory overhead. Ending inventory consisted of 12,000 units
which were 90% complete with respect to materials and 50% complete with respect to
labor and overhead. Compute the value assigned to ending inventory based on the
weighted average method of inventory costing.
3) Discuss how the principles of internal control apply to cash receipts through the mail
by giving several examples of good control measures that should be implemented.
4) Caroline Meeks and Charlie Fox decide to form a partnership on August 1. Meeks
invests the following assets and liabilities in the new partnership:
The note payable is associated with the building and the partnership will assume
responsibility for the loan. Fox invested $100,000 in cash and $95,000 in equipment in
the new partnership. Prepare the journal entries to record the two partners’ original
investments in the new partnership.
5) The reporting of investing and financing activities is _________________ under the
direct and indirect methods of preparing the statement of cash flows.
6) When factory payroll for indirect labor is assigned, __________________ is debited.