1. Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Jackson Company will
A) debit Land for $200,000.
B) credit Common Stock for $192,000.
C) debit Land for $192,000.
D) credit Paid-In Capital in Excess of Par for $196,000.
2. Victory Corporation sold 400 shares of treasury stock for $45 per share. The cost for the shares was $35. The entry to record the sale will include a
A) credit to Gain on Sale of Treasury Stock for $14,000.
B) credit to Paid-in Capital from Treasury Stock for $4,000.
C) debit to Paid-in Capital in Excess of Par for $4,000.
D) credit to Treasury Stock for $18,000.
3. Which of the following show the proper effect of a stock split and a stock dividend?
4. Dabney, Inc., has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 40,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $60,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?
A) $0
B) $25,000
C) $10,000
D) $35,000
5. A $600,000 bond was retired at 98 when the carrying value of the bond was $590,000. The entry to record the retirement would include a
A) gain on bond redemption of $10,000.
B) loss on bond redemption of $10,000.
C) loss on bond redemption of $2,000.
D) gain on bond redemption of $2,000.
6. The following data are available for Two-off Company.
|
Increase in accounts payable
|
$120,000
|
|
Increase in bonds payable
|
300,000
|
|
Sale of investments
|
150,000
|
|
Issuance of common stock
|
160,000
|
|
Payment of cash dividends
|
90,000
|
Net cash provided by financing activities is:
A) $180,000.
B) $370,000.
C) $360,000.
D) $420,000.
7. The net income reported on the income statement for the current year was $220,000. Depreciation recorded on plant assets was $35,000. Accounts receivable and inventories increased by $2,000 and $8,000, respectively. Prepaid expenses and accounts payable decreased by $2,000 and $12,000 respectively. How much cash was provided by operating activities?
A) $200,000
B) $235,000
C) $220,000
D) $255,000
8. If a company reports a net loss, it
A) may still have a net increase in cash.
B) will not be able to pay cash dividends.
C) will not be able to get a loan.
D) will not be able to make capital expenditures.
9. A creditor would be most interested in evaluating which of the following ratios?
A) Asset turnover
B) Earnings per share
C) Payout ratio
D) Times interest earned
10. Lionel Company has beginning work in process inventory of $220,000 and total manufacturing costs of $950,000. If cost of goods manufactured is $940,000, what is the cost of the ending work in process inventory?
A) $210,000.
B) $230,000.
C) $240,000.
D) $206,000.
11. The principal difference between a merchandising and a manufacturing income statement is the
A) cost of goods sold section.
B) extraordinary item section.
C) operating expense section.
D) revenue section.
12. Given the following data for Good man Company, compute (A) total manufacturing costs and (B) costs of goods manufactured:
|
Direct materials used
|
$345,000
|
|
Beginning work in process
|
$15,000
|
|
Direct labor
|
305,000
|
|
Ending work in process
|
60,000
|
|
Manufacturing overhead
|
450,000
|
|
Beginning finished goods
|
75,000
|
|
Operating expenses
|
525,000
|
|
Ending finished goods
|
45,000
|
|
Total Manufacturing Costs
|
Costs of Goods Manufactured
|
|
A)
|
$1,055,000
|
$1,100,000
|
|
B)
|
$1,070,000
|
$1,130,000
|
|
C)
|
$1,100,000
|
$1,055,000
|
|
D)
|
$1,130,000
|
$1,055,000
|
13. Alpine Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2014 totaled $20,000 of materials, $8,000 of direct labor costs, and $8,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $9,000, and the ending balance is $15,000. During the year, the company completed 20 machines. How much is the cost per machine?
A) $1,500
B) $1,880
C) $1,320
D) $1,760
14. For Cevu Company, the predetermined overhead rate is 75% of direct labor cost. During the month, $750,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $420,000. The amount of overhead debited to Work in Process Inventory should be:
A) $560,000
B) $412,500
C) $420,000
D) $562,500
15. Hunten Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,400 machine hours and Cutting Department shows 3,000 machine hours for the period. If the overhead rate is $5 per machine hour, the entry to assign overhead will show a
A) debit to Manufacturing Overhead for $22,000.
B) credit to Work in Process-Cutting Department for $15,000.
C) debit to Work in Process for $15,000.
D) credit to Manufacturing Overhead for $22,000.