compexam_c - Comprehensive Examination C C-1 COMPREHENSIVE...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Comprehensive Examination C COMPREHENSIVE EXAMINATION C (Chapters 10 - 12) Approximate Problem Topic Points Minutes C - I Multiple Choice . ............................................ 20 20 C - II Ratios . ........................................................... 10 10 C - III Corporation Entries . ...................................... 22 15 C - IV Bonds Payable. .............................................. 20 15 C - V Plant Asset Depreciation and Disposal Entries 16 15 C - VI Depreciation Methods. ................................... 12 10 100 85 Checking Work . ............................................. 5 90 C-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Test Bank for Financial Accounting, Fifth Edition Problem C - I — Multiple Choice (20 points) Circle the one best answer. 1. The amortization of premium on bonds payable a. will increase bond interest expense. b. should take place over a period not to exceed 40 years. c. will decrease bond interest expense. d. will increase bond interest revenue. 2. A corporation issued $600,000 of 6%, 5-year bonds on January 1, at 102. Interest is paid semiannually on January 1 and July 1. If the corporation uses the straight-line method of amortization, the amount of bond interest expense to be recognized on July 1 is a. $36,000. b. $18,000. c. $19,200. d. $16,800. 3. A $200,000, 5%, 20-year bond was issued at 99. The proceeds received from the bond issuance are a. $200,000. b. $198,000. c. $204,000. d. $196,000. 4. A prior period adjustment a. appears on the income statement as an extraordinary item. b. is a correction of an error, made directly to retained earnings. c. is made when preferred dividends in arrears are finally paid. d. is made to reverse an adjusting entry. 5. The Ewing Company purchases 1,000 shares of its common stock for $20,000. The $20,000 amount should be debited to a. an asset account. b. Treasury Stock. c. Common Stock. d. Retained Earnings. 6. The X Company has the following stock outstanding: 6% Preferred stock, $100 par value, cumulative $300,000 Common stock, $50 par value $600,000 Preferred stock dividends are in arrears for 2004 and 2005. If the company declares and pays $64,000 in dividends in 2006, the amount received by the preferred stockholders would be a. $36,000. b. $18,000. c. $54,000. d. $64,000. C-2
Background image of page 2
Comprehensive Examination C 7. Equipment was purchased for $36,000 and has a book value of $12,000 and a depreciable cost of $30,000. The estimated salvage value is a. $12,000. b. $24,000. c. $5,000. d. $6,000. 8. Anne Company has total cash register receipts of $6,825. This total includes a 5% sales tax. The entry to record the receipts will include a a. debit to Sales Tax Expense for $325.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/08/2008 for the course ACC 220 taught by Professor J during the Winter '08 term at South Central College: Faribault Campus.

Page1 / 11

compexam_c - Comprehensive Examination C C-1 COMPREHENSIVE...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online