224f10_final2

# 224f10_final2 - MISCH FALL 2010 FINANCIAL ACCOUNTING FINAL...

This preview shows pages 1–5. Sign up to view the full content.

MISCH NAME_____________________________ FALL 2010 FINANCIAL ACCOUNTING FINAL EXAM PROBLEM POSSIBLE POINTS ACTUAL POINTS 1. Bonds Payable 22 2. Dividends 11 3. Transaction Analysis 10 4. Time Value of Money 06 5. Basic and Adjusting Journal Entries and Financial Statements 63 6. Multiple Choice 06 7. Quibble Point 02 ---------- Total 120 NOTE: A. If you are asked for an entry or an amount when none is required, write “no entry” or “zero” in the space provided. B. Round all answers to the nearest dollar. C. Partial credit will be given only when supporting computations are shown in good form. D. Calculators with stored-text capabilities and cell phones are prohibited on this examination. Use of such items and/or possession of any unauthorized materials will result in your receiving a zero on the examination. E. Good Luck! Have a wonderful Christmas holiday! 1

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

View Full Document
PART I—BONDS PAYABLE (22 POINTS) On January 2, 2009, at a time when the market interest rate was 6.2%, Brock Corporation issued \$400,000 of 6- year, 4.7% bonds for \$370,681. The bonds pay interest annually each January 1 st . Brock has a calendar year-end and uses the effective interest method of amortization. Required: A. Prepare the journal entry required on Brock’s books on January 2, 2009 to record the issuance of the bonds. (4 Points) DATE ACCOUNT DEBIT CREDIT B. Prepare a bond amortization table through December 31, 2011. (4 Points) C. Prepare, in good form, the balance sheet presentation related to the bonds that would appear on Brock’s books at December 31, 2010. (Ignore cash.) (3.5 points) 2
PART I—BONDS PAYABLE (Continued) D. Prepare any journal entry/entries required on Brock’s books at December 31, 2011. (4 Points) DATE ACCOUNT DEBIT CREDIT E. Prepare, in good form, the income statement presentation related to the bonds that would appear on Brock’s books for 2011. (1.5 Points) F. Assume that on January 2, 2012 , Brock redeemed the bonds at 98. Prepare the journal entry required on the company’s books to record the redemption. (5 Points) DATE ACCOUNT DEBIT CREDIT 3

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

View Full Document
PART II—DIVIDENDS (11 POINTS) Case 1: Keck Corporation On December 22, 2010, the board of directors of Keck Corporation declared a cash dividend of \$1,200,000, payable on December 31, 2010 to stockholders of record on December 26, 2010. Prior to this event, Keck had last paid dividends in 2008 and both the preferred and common stockholders received dividends at that time. Keck had the following balances in its stockholders’ equity accounts during 2010: Preferred Stock, 6%, \$50 par value \$ 750,000 Common Stock, \$4 par value \$ 1,250,000 Additional Paid-in Capital—Common Stock \$ 1,000,000 Retained Earnings \$ 4,000,000 Required: 1. Compute the total dividends to be allocated to each class of stockholders in 2010, assuming that the preferred shares are noncumulative and nonparticipating
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 15

224f10_final2 - MISCH FALL 2010 FINANCIAL ACCOUNTING FINAL...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online