42. Brooks Company consumed a natural resource in the amount of $5,000 during the currentaccounting period. What would be the journal to record the using up of this resource?a. Depletion Expense$5,000Accumulated Depletion$5,000b. Depletion Expense$5,000Cash$5,000c. Depletion Expense$5,000Depletable Asset$5,000d. Accumulated Depletion$5,000Depletion Expense$5,0009
43.Smith. Corp. sold 100 shares of $50 par value common stock for $70 per share. What would be the correct journal entry to record the transaction? 44. Park Inc. earned EBIT of $10,000,000 last year. If its tax rate was 40%, interest expense was $2,000,000, and the number of common shares was 1,000,000, what is the firm’s EPS? 45. Brooks Co. declared and paid a cash dividend of $5,000. What would be thejournal entries?10
46.A corporation issues $50,000 of a 8% coupon, $1,000 par value bonds. Whatwould be the semi-annual interest payment journal entry? a. Bonds Payable$4,000Cash$4,000b. Bond Interest Expense$4,000Cash$4,000c. Bonds Payable$2,000Cash$2,000d. Bond Interest Expense$2,000Cash$2,00047. Given the following balance sheets of three firms, which appears to have greaterfinancial leverage? DebtEquityTotal Assets48. Given the following income statements of three companies, which appears to havegreater financial leverage based upon the times interest earned ratio which is EBIT divided by interest? Firm A Firm BEBIT$50$100Interest 10 15 EBT4085Taxes 2045EAT2040Firm C $75 5 70 50 2011
49. What is the maximum life that the intangible asset patent value can be amortized? 50. A company is being sued for $100,000. What would be recorded on the balance sheet? 12
PACE SAMPLE EXAM KEY 1. c2. d3. e4. b5. a6. e7. e8. a9. b10. d 11. a12. c13. b14. a15. b16. c17. a18. b19. b20. d21. d22. c23. d24. a25. b26. d27. b28. c29. a30. a31. b32. c33. b34. b35. d36. c37. c38. c 39. c40. c41. b42. a43. b44. c45. d46. d47. b48. c49. c50. a13
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