Springl_2011_Acct 510_midterm 2

Springl_2011_Acct 510_midterm 2 - Acct 510_Spring_2010:...

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Acct 510_Spring_2010: Exam 2 Name: _______________________ Question 1: (24 points) The following information related to the marketable security investments of Marple Company. Securities held on December 31, 2009, as described in the table below. AAA and BBB are classified as trading securities and CCC is classified as an available-for-sale security. Securities No. of Shares Cost/Share Total Cost Value/Share Total Market Value AAA 100 $28 $2,800 $34 $3,400 BBB 250 30 7,500 28 7,000 CCC 150 16 2,400 20 3,000 $12,700 $13,400 Early in 2010, Marple sold all of its investment in AAA securities for $36 per share. (a) The company also sold 50 shares of BBB for $26 per share. (b) During 2010, Marple received dividends of $3 per share on the remaining 200 shares of BBB, (c) and dividends of $2.50 per share were declared, but not yet received on the 150 shares of CCC stock. (d) The per-share market values of BBB and CCC on December 31, 2010, were $24 and $18, respectively. (e) (f) During 2011, Marple sold the remaining 200 shares of BBB stock for $26 per share and the 150 shares of CCC for $22 per share. (g) (h) Make Journal Entries for (a)-(h). Indicate whether each account is an asset (A), liability (L), or equity (E) (3 points each) Use the following accounts for gains and losses Gain –RE, Loss–RE, Unrealized Gain–RE, Unrealized Loss–RE, Unrealized Gain–Acc OCI, Unrealized Loss–Acc OCI, and Acc OCI. Question 2: (16 points) Agazzi Company purchased equipment for $440,000 on January 1 st , 2010. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $40,000.
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This note was uploaded on 07/08/2011 for the course ACCOUNTING 510 taught by Professor Chavis during the Spring '09 term at CSU Fullerton.

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Springl_2011_Acct 510_midterm 2 - Acct 510_Spring_2010:...

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