Sample Exam

Sample Exam - Sample Exam Question 1. In each box of cereal...

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Sample Exam Question 1 . In each box of cereal that it produces, Krunchy Cereal Corp includes a special coupon. The purchaser may redeem 10 coupons for a cheese grater (premium). Each grater costs Krunchy $0.90. In 2012, Krunchy purchased 6,000 graters and sold 200,000 boxes of cereal @ $3.50 per box. Based on past experience, Krunchy estimates that 60% of the coupons will be redeemed. During 2012, 45,000 coupons were presented for redemption. During 2013, 8,000 graters were purchased. Krunchy sold 300,000 boxes of cereal at $3.75 and 90,000 coupons were presented for redemption. Instructions Prepare all the journal entries that would be made regarding the cereal sales and the premium plan in both 2012 and 2013. Question 2 At December 31, 2012, Mandeep Corp has the following shares outstanding (all no par): 150,000 common shares $ 1,150,000 $6 preferred, 5,000 shares $ 500,000 The preferred shares are cumulative and participating up to an additional 4%. Dividends have not been paid since December 31, 2009. Mandeep now wishes to declare a total cash dividend of $240,000. Instructions Prepare the entry for the dividend declaration, separating the dividend into the common and preferred portions. Show all calculations. Question 3 On January 1, 2012, August Industrial Corp. issued $5,000,000 (par value) 8%, 10-year convertible bonds for $5,000,000 cash. Interest is to be paid annually on December 31. Each $10,000 bond carries the right to purchase 100 common shares of August for $20
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This note was uploaded on 01/01/2012 for the course ACCT 531 taught by Professor Janicecharko during the Winter '11 term at Humber.

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Sample Exam - Sample Exam Question 1. In each box of cereal...

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