2300sampleexam4
10 Pages

2300sampleexam4

Course Number: ACCOUNTING 2300, Fall 2009

College/University: Texas Tech

Word Count: 1582

Rating:

Document Preview

Sample Exam 4, Chapters 11 and 12 Chapter 11 Questions 1. If a corporation is authorized to issue 1,000 shares of $50 common stock, it is said to have $50,000 of stock outstanding. A) B) True False 2 Par value per share is the price at which a share of stock is bought or sold. A) True B) False 3. Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before...

Unformatted Document Excerpt
Coursehero >> Texas >> Texas Tech >> ACCOUNTING 2300

Course Hero has millions of student submitted documents similar to the one
below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.

Exam Sample 4, Chapters 11 and 12 Chapter 11 Questions 1. If a corporation is authorized to issue 1,000 shares of $50 common stock, it is said to have $50,000 of stock outstanding. A) B) True False 2 Par value per share is the price at which a share of stock is bought or sold. A) True B) False 3. Cumulative preferred stock carries the right to be paid both current and all prior periods' unpaid dividends before any dividends are paid to common shareholders. A) True B) False 4 The declaration of cash dividends reduces retained earnings. A) True B) False 5. Purchasing treasury stock reduces the corporation's assets and stockholders' equity by equal amounts. A) True B) False 6. If a company resells treasury stock below the acquisition cost, then the income statement must report a loss from the sale of treasury stock. A) True B) False 7. The total amount of stock that a corporation's charter allows it to issue is referred to as: A) Issued stock. B) Outstanding stock. C) Common stock. D) Preferred stock. E) Authorized Stock. 8. A company issued 7% preferred stock with a $100 par value. This means that: A) Preferred shareholders have a guaranteed dividend. B) The amount of the potential dividend is $7 per year per preferred share. C) Preferred shareholders are entitled to 7% of the annual income. D) The market price per share will approximate $100 per share. E) Only 7% of the total contributed capital can be preferred stock. 1 9. For all of 2007, Axel Company has $1 par value common stock, 200,000 shares authorized, 100,000 shares issued and 90,000 shares outstanding. The balance in Retained Earnings at the beginning of the year was $500,000. Net income for the current year was $300,000. If the company declared and paid a cash dividend of $2 per share on its common stock during 2007, what is the balance in Retained Earnings at the end of the year? A) $ 800,000 B) $ 1,000,000 C) $ 600,000 D) $ 620,000 E) $ 400,000 10 At January 1, 2007, Baxter Company has $1 par value common stock, 200,000 shares authorized, 90,000 shares issued and 80,000 shares outstanding. How many shares of treasury stock does the company have at January 1, 2007? A) 30,000 shares B) 110,000 shares C) 120,000 shares D) 10,000 shares E) cannot be determined from the information above 11. Izzy Corporation repurchased some of its own common stock from the marketplace in January of 2007. Izzy paid $20 per share to purchase 1,000 shares of its $10 par value stock. Note that this is the first treasury stock transaction that Izzy has undertaken. Assume that, on December 1, 2007, Izzy reissued all 1,000 shares of treasury stock at $19 per share. The journal entry to record this reissue would include: A. a credit to Treasury Stock for $19,000 B. a credit to Treasury Stock for $10,000 C. a debit to Retained Earnings for $1,000 D. a credit to Cash for $19,000 E. a debit to Loss on Sale of Stock for 1,000 12. Treasury stock is classified as: A) An asset account. B) A contra asset account. C) A revenue account. D) A contra equity account. E) A liability account. 13. Xtreme Sports has $100,000 of 8% noncumulative preferred stock outstanding. Xtreme Sports also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $30,000. This dividend should be distributed as follows: A) $8,000 preferred; $22,000 common. 2 B) C) D) E) $16,000 preferred; $14,000 common. $7,500 preferred; $22,500 common. $15,000 preferred; $15,000 common. $0 preferred; $30,000 common. 14. Xtreme Sports has $100,000 of 8% cumulative preferred stock outstanding. Xtreme Sports also has $500,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $30,000. This dividend should be distributed as follows: A) $8,000 preferred; $22,000 common. B) $16,000 preferred; $14,000 common. C) $7,500 preferred; $22,500 common. D) $15,000 preferred; $15,000 common. E) $0 preferred; $30,000 common. 15. On June 1, 2008, Doran Company declared a cash dividend of $100,000. the dividend was to be paid on August 1, 2008 to the shareholders of record at July 1, 2008. The journal entry to record the declaration on June 1, 2008 would be: A) B) C) D) E) Dividend Expense Cash Retained Earnings (Dividends) Cash Dividend Expense Dividends Payable Retained Earnings (Dividends) Dividends Payable 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 No journal entry is necessary, as the dividends will not be paid until August 1, 2008. 16. Parker Pharmaceuticals issued 10,000 shares of $1 par value common stock. At the date of issue, the market price per share was $20. The journal entry to record the issue would include: A) a debit to Common Stock for $200,000 B) a credit to Cash for $200,000 C) a credit to Additional Paid in Capital on Common Stock for $190,000 D) a credit to Common Stock for $200,000 3 Given the following excerpt from the 2008 balance sheet of Poser Corporation: Common stock, $5 par value, 500,000 shares authorized, ? shares issued, ? shares outstanding $ 100,000 Additional paid-in capital on Common Stock 400,000 Retained earnings 500,000 Less treasury stock, 2,000 shares at cost (36,000) Total stockholders' equity $ 964,000 17. How many shares of common stock of Poser Corporation are issued at December 31, 2008? a. 100,000 shares b. 500,000 shares c. 18,000 shares d. 20,000 shares 18. How many shares of common stock of Poser Corporation are outstanding at December 31, 2008? a. shares 100,000 b. 500,000 shares c. 18,000 shares d. 20,000 shares ___19. What was the average market price per share of Poser's common stock at its issue? a. $5 per share b. $20 per share c. $25 per share d. $50 per share 4 Answers to Chapter 11 Questions 1. B 2.B 3.A 4.A 5.A 6.B 7.E 8.B 9.D 10.D 11.C 12.D 13.A 14.B 15.D 16.C 17.D 18.C 19.C 5 Chapter 12 Sample Questions The following information is for the next 4 questions: Barber Company had the following balance sheet amounts at the end of 2007 and 2008: 2008 2007 Cash $ 7,000 $ 25,000 Accounts receivable 60,000 75,000 Inventory 95,000 125,000 Property, plant and equipment 650,000 500,000 Accumulated depreciation (125,000) (100,000) Accounts payable 50,000 35,000 Income tax payable 35,000 22,000 Notes payable 60,000 100,000 Bonds payable 300,000 300,000 Common stock 195,000 150,000 Retained earnings 47,000 18,000 During 2008: 1. Equipment of $100,000 was purchased with cash. 2. A building costing $60,000 was purchased with the issue of a notes payable. 3. Land costing $10,000 was sold for $11,000 cash, at a gain of $1,000. 4. Payments of $100,000 were made to the bank on the notes payable. 5. Common stock was issued for cash. 6. Net income for 2008 was $29,000, and depreciation expense for 2008 was $25,000. 1. For the 2008 Statement of Cash Flows, net cash inflow from operating activities would be: A) $126,000 B) $124,000 C) $ 66,000 D) $ 67,000 2. For the 2008 Statement of Cash Flows, net cash outflow for investing activities would be: A) $( 90,000) B) $( 150,000) C) $( 100,000) D) $( 89,000) 3. For the 2008 Statement of Cash Flows, net cash outflow for financing activities would be: A) $( 50,000) B) $( 150,000) C) $( 100,000) D) $( 55,000) 4. The net increase or decrease in cash during 2008 would be A) $25,000 increase B) $ 7,000 increase C) $18,000 increase D) $18,000 decrease 6 5. Financing activities include the purchase and sale of long-term assets and lending and collecting on loans. A) True B) False 6. Cash dividends paid to shareholders is considered a financing outflow of cash. A) True B) False 7. When preparing the operating section of the statement of cash flows using the indirect method, depreciation expense is added back to net income. A) True B) False 8. When preparing the operating section of the statement of cash flows using the indirect method, an increase in income taxes payable is added to net income. A) True B) False 9. When preparing the operating section of the statement of cash flows using the indirect method, a decrease in accounts receivable is subtracted from net income. A) True B) False 10. The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is: A) Operating activities. B) Financing activities. C) Investing activities. D) Schedule of noncash investing or financing activity. E) None of these. This is not reported on the statement of cash flows. 11. Typical cash flows from investing activities include: A) Payments to purchase property, plant and equipment or other productive assets (excluding inventory). B) Cash proceeds from the sale of land C) Cash paid to purchase a patent. D) All of the above. 12. The appropriate section in the statement of cash flows for reporting the purchase of land in exchange for common stock is: A) Operating activities. 7 B) C) D) E) Financ...

Find millions of documents on Course Hero - Study Guides, Lecture Notes, Reference Materials, Practice Exams and more. Course Hero has millions of course specific materials providing students with the best way to expand their education.

Below is a small sample set of documents:

Texas Tech - M - 3350
SOLVING SECOND ORDER, HOMOGENEOUS EULER-CAUCHY EQUATIONS: THE CASE OF THE REPEATED ROOTLANCE DRAGERIn this note, we show how to find the second basic solution for a second order Euler-Cauchy equation in the case of a repeated root of the character
Virginia Tech - CS - 1044
CS 1044 TA ScheduleSpring 2003Monday 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 CC CC CC CC CC CC CC CC ST ST ST ST CH CH CH CH CH CH MS MS MS MS M
Virginia Tech - CS - 1044
Study Guide for Final ExamChapter 1 1. What are the 4 phases of programming? 2. What are Polya's 4 Steps for Problem Solving? 3. What are the different levels of computer programming languages? 4. What is an algorithm? 5. What are the properties of
Virginia Tech - CS - 1044
Chapter 13ListsList List A variable -length, linear collection of variablehomogeneous components Example StudentRec Students[100]; A list of 100 students structures1Common Operations On almost all data structures, there are 4 common act
Virginia Tech - CS - 1044
Tic-Tac-Toe Game DataX: Guy RhodesO: Jim KeaneyX2O1X5O6X9O7X4O8X3
Virginia Tech - CS - 1044
Tic-Tac-Toe Game DataX: Mary RhodesO: Eric HoganX10X4O5X6O2X7O1X11X3A9O8X9
Virginia Tech - CS - 1044
DukeTowson2927Roanoke CollegeNavy510UVAJohn Hopkins026TowsonSyracuse199Washington & LeeTowson529TowsonUNC910TowsonNavy220TowsonUVA22Washington & LeeJohn Hopkins017NavyPrinceton1328SyracuseWashington & Lee141
Virginia Tech - CS - 1044
TowsonWashington & Lee911SyracuseJohn Hopkins1122LoyolaPrinceton129TowsonWashington & Lee727UNCJohn Hopkins1528NavyJohn Hopkins252HofstraLoyola197MarylandUNC925RadfordPrinceton827John HopkinsWashington & Lee2520
University of Illinois, Urbana Champaign - ESSAYS - 569
Quantum Phase Transitions Outside the Wilson Landau Ginzburg ParadigmRahul Biswas May 8, 2004Abstract We review certain aspects of quantum phase transititions. We then report on certain recent theoretical advances in the study of quantum phase tran
University of Illinois, Urbana Champaign - ESSAYS - 569
Quantum Phase Transitions of Correlated Electrons in Two Dimensions: Connections to Cuprate SuperconductivityVamsi Akkineni Department of Physics, University of Illinois at Urbana-ChampaignABSTRACT The physics of the two dimensional electron gas i
Johns Hopkins - PCM - 1231
From:Times Square 2000 Rubenstein Associates, Inc. Public Relations (212) 843-8000 Contacts: Times Square BID Countdown Entertainment Holly Taylor (212) 843-9220 Janet Wootten (212) 843-8032 Christine Krische/Dennis Crowley (212) 768-1560FOR IMME
Johns Hopkins - EVENT - 1231
From:Times Square 2000 Rubenstein Associates, Inc. Public Relations (212) 843-8000 Contacts: Times Square BID Countdown Entertainment Holly Taylor (212) 843-9220 Janet Wootten (212) 843-8032 Christine Krische/Dennis Crowley (212) 768-1560FOR IMME
Western Kentucky University - CSC - 501
NKU CSC 501 Intermediate Programming WorkshopProgramming Assignment 1Practice with procedural program design in C+.The experimental Internet4 consists of N=10,000 interconnected computers running simple email programs.1 Each day the following ha
Western Kentucky University - CSC - 501
N K U CSC 501 I nter medi a te Pr ogr a mmi ng Wor kshopProgramming Assignment 3Practice with binary trees in C+.Design and implement a program, named exptree, that accepts infix expressions as input, parses them into a binary expression tree,
Western Kentucky University - CSC - 501
Stack ( const Stack & st ) ;(top entr y) N KU CSC 501 I nter mediate Pr ogr amming Wor k shop~Stack () ; / M uta tor s void push( const T & ) ; bool pop() ; void clear () ; const T & top() const ; Programming Assignment 2 / I nspector s int depth
East Los Angeles College - M - 365
M365Hua Miao spirit worship. 10. Be-a-dli. (Sowing souls.)Compiled by Wang Ming-ji. Notes. This material is recorded in Document B pages 22 and 23.M365NT1
East Los Angeles College - M - 375
M375 9 F" M S M L. Worship venerable and old. _ J year X reach C horse F month F" worship E take E take F", worship, Y one Y one C eat C horse 'C day D then Q must P carry Y one W corn D thenX' everyY L presently Y oneF". T' K worship. when W,
University of Illinois, Urbana Champaign - CS - 433
Chapter 5 (cont)Instructor: Josep Torrellas CS433Copyright Josep Torrellas 1999, 2001, 20021TLB Why does TLB work ? Address translations have localityProtection bitsVPNPPNvalid bit use bit dirty bit TLB smaller /faster than cache Ho
LSU - EE - 3221
Electrical and Computer EngineeringEE3221Pre-Lab Assignment: Lab 1Name_ Score / 10Directions Answer the following questions concerning the introductory lab. Record answers on this sheet and submit it at the beginning of lab. Late submissions w
LSU - AGRO - 2051
AGRO 2051 Comments Soil Science (4) Prereq: CHEM 1002, 1212 or equivalent. 3 hrs. lecture; 2 hrs. lab. Principles of soil science; properties of soils related to plant growth and the environment. Lecture Lab Instructor Office Lab Phone e-mail Hours G
U. Houston - CUIN - 3113
The Food PyramidBy: DeCorey The food pyramid used to be blocks or sections, now each group is a colored stripe.orange - grains green - vegetables red - fruits blue - milk and dairy products purple - meat, beans, fish, and nuts yellow - oilsHow
Washington - ATMOS - 211
Yesterday - ended with topic of short-term carbon uptake by forestation remember its only temporary Posed question - what about the decrease in albedo from replacing bare soil with trees?Late 21st century forest expansion caused by increasing CO2 a
Washington - CHEM - 321
CHEM 321 Homework #2 (Winter 2004)Problem #1 A pH measurement, repeated five times, gave the following values: 5.42, 5.45, 5.46, 5.40, 5.46. Calculate the mean and the standard deviation.Problem #2 A given sample containing sodium carbonates requ
Washington - HUBIO - 532
Motor System: Clinical CorrelationEric Kraus, MD NeurologyNeurological "levels"q q q q q q qBrain Brainstem Spinal cord Motor neuron Peripheral nerve Neuromuscular junction MuscleSites of DiseaseR LMotor Systemq q q qStrength Tone Bul
Washington - CHEM - 238
CHEM 238 Summer, 2001 Prof. SasakiEXAM #2Name.100 points TOTAL Good Luck! Note: Only answers in the box will be graded. _ 1. (25) (a) The following sequence of reactions is a good way to convert a 1alkylcyclohexene to a 3-alkylcyclohexene. Dr
Washington - CHEM - 238
CHEM 238 Summer, 1998 Prof. SasakiFINAL EXAMName_.100 points TOTAL Good Luck! Note: Only answers in the box will be graded. _ 1. (35) (a) The insecticide DDT is prepared by the following route. Suggest a mechanism for this reaction. The abb
Washington - MATH - 125
7.1 - 7.5 Review - Integration Techniques My reviews and review sheets are not meant to be your only form of studying. It is vital to your success on the exams that you carefully go through and understand ALL the homework problems, worksheets and lec
LSU - NR - 37270
A Community Nutrition Education ProgramGet Fit with 3 Types of Exercise:Aerobic: to work up a sweat Anaerobic: to build strength Flexibility: so you can keep movingEating and Exercising for Good Health Problems working exercise into your day? I
Texas A&M - ISEN - 629
ISEN 629 Engineering Optimization Fall 2007http:/ise.tamu.edu/people/faculty/butenko/ISEN629/Course SyllabusClass Hours: Classroom: Instructor: Office: e-mail: Credits: TR 12:45PM-02:00 PM 104A Zachry Sergiy Butenko 236E Zachry butenko@tamu.edu 3
Boise State - CS - 125
%!PS-Adobe-2.0 %Creator: dvips(k) 5.86 Copyright 1999 Radical Eye Software %Title: section1.dvi %Pages: 4 %PageOrder: Ascend %BoundingBox: 0 0 596 842 %EndComments %DVIPSWebPage: (www.radicaleye.com) %DVIPSCommandLine: dvips -o section1.ps section1 %
Boise State - CS - 125
%!PS-Adobe-2.0 %Creator: dvips(k) 5.86 Copyright 1999 Radical Eye Software %Title: section2.dvi %Pages: 4 %PageOrder: Ascend %BoundingBox: 0 0 596 842 %EndComments %DVIPSWebPage: (www.radicaleye.com) %DVIPSCommandLine: dvips -o section2.ps section2 %