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Study Resources (Accounting)

13.5-15For the year 2013, Foxmore Company reports the following items as part of their financial results: Sales revenues from regular business operations $3,000,000 Cost of goods sold    900,000 Operating expenses from their regular business operations     600,000 Gain on disposal of several items of property, plant & equipment                15,000 Income tax expense on continuing operations     330,000 Loss.
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12.7-10Sheffield Company had $42,000 of net income in 2013.  Equity at the beginning of the year was                                           $1,200,000 and at the end of the year was $1,600,000.  Sheffield has no preferred stock.  Please calculate                                           the rate of return on common stockholders’ equity.  (Round to.
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14.1-1Cash equivalents are assets that can be converted to cash within one year. 14.1-2The statement of cash flows explains the difference between net income and the change in cash balance. 14.1-3Investors and management use the statement of cash flows to evaluate a firm's profitability.  14.1-4For purposes of the statement of cash flows,.
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13.2-4Preferred Products started business on March 1, 2012, and issued 100,000 shares of $2 par value common                             stock at a market price of $50 per share.  One year later, the share price had soared to $120.  If                                                         Preferred Products does a 3-fo-1 stock split,.
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13.3-1Treasury stock is a corporation's own stock that it has issued and later reacquired.  13.3-2The purchase of treasury stock requires a credit to the Common stock account.  13.3-3A corporation must record a gain on sale for the sale of treasury stock at an amount greater than its                                          .
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13.1-21Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock.  The stock                                           was originally issued for $12 per share.  On March 15, the board of directors declares a 10% stock                                           dividend when the stock is selling for $16 per share.  Which.
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12.3-39Notebook Company had the following transactions in 2014, its first year of operations. Issued 2,000 shares of common stock.  Stock has par value of $1.00 per share and was issued at $50.00 per share. Issued 100 shares of $100 par value preferred stock.  Shares were issued at par. Earned net income of $95,000. Paid.
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13.2-34On July 31, 2013, the Archer Company reported the following information in the equity section of their                                           balance sheet: Stockholders' equity   Common stock, $1.00 par, 500,000 shares authorized, 20,000 shares issued $20,000   Paid-in capital in excess of par 1,180,000   Retained earnings 3,200,000       Total stockholder's equity $4,400,000 Assume that Archer.
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13.4-6Which of the following statements is TRUE?  A) Restrictions on retained earnings require adjusting journal entries.  B) Restrictions on retained earnings are usually reported in the notes to the financial statements.  C) Restrictions on retained earnings are disclosed on the income statement.  D) Restrictions on retained earnings are designed to.
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14.3-18In creating a statement of cash flows using the indirect method, we consider that an increase in current                                           assets causes a decrease in cash. 14.3-19Selling property, plant and equipment would be considered a cash inflow from investing. 14.3-20Avatar Company uses the indirect method to prepare the statement of cash.
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13.1-1Stock dividends have no effect on assets or liabilities.  13.1-2Cash dividends affect only stockholders' equity accounts.  13.1-3Stock dividends are distributed to stockholders in proportion to the number of shares each stockholder                                           already owns.  13.1-4The declaration of a stock dividend creates a liability for the corporation.  13.1-5On June.
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12.3-37Lerner Company had the following transactions in 2013, its first year of operations. Issued 20,000 shares of common stock.  Stock has par value of $1.00 per share and was issued at $14.00 per share. Issued 1,000 shares of $100 par value preferred stock.  Shares were issued at par. Earned net income of $35,000. Paid.
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13.1-31Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock.  The stock                                           was originally issued for $12 per share.  On March 15, the board of directors declares a 10% stock                                           dividend when the stock is selling for $16 per share.  Prepare.
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13.5-33At January 1, 2013, Foxmore Company had 80,000 shares of common stock outstanding and no preferred                                           stock.  During the year, they issued 40,000 additional shares of common stock.  At December 31, 2013,                                           Foxmore had 120,000 shares of common stock outstanding, and no preferred stock. .
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11.6-1The main reason companies retire bonds prior to their maturity date is to relieve the pressure of paying                                           semiannual interest payments. 11.6-2If a company wishes to retire bonds early, they may call the bonds if the bonds are callable, but they may                                           not purchase them.
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12.2-5Paid-in capital is equity that is generated internally by corporate business transactions. 12.2-6Retained earnings is equity that is generated internally by corporate business transactions. 12.2-7All corporations must issue both common and preferred shares of stock. 12.2-8Which of the following represents one of the basic rights of stockholders? A)    Stockholders may sell their stock back.
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11.3-46On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years.  They were                                           issued at par–for the same amount as the face value.  Please provide the journal entry to issue the                                                         bonds. 11.3-47On January 1, 2013, Davie Services issued.
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13.3-31Please refer to the following information for Peartree Company: Common stock, $1.00 par, 100,000 issued, 95,000 outstanding Paid-in capital in excess of par: $2,150,000 Retained earnings:  $910,000 Treasury stock: 5,000 shares purchased at $20 per share If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, what amounts will be shown.
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13.3-50At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Stockholders' equity   Common stock, $1 par, 1,000,000 shares authorized, $120,000                           120,000 shares issued, 110,000 shares outstanding   Paid-in capital in excess of par 2,470,000   Retained earnings 5,440,000   Treasury stock, 10,000 shares at $25 (250,000)       Total stockholder's.
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12.3-4When a company sells stock for more than the par value, it will record a gain on sale for the amount in                                           excess of par. 12.3-5Osbourne Company issued 50,000 shares of common stock in exchange for manufacturing equipment.                                            The equipment was valued at $1,000,000.  The.
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12.1-11Which of the following corporate characteristics is a disadvantage of the corporate form of business?  A) Limited liability  B) Double taxation  C) No mutual agency  D) Transferability of ownership  12.1-12Which of the following is a disadvantage of the corporate form of business?  A) Separation of ownership and management  B) Continuous.
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12.3-33Chaney Corporation issued 20,000 shares of common stock on January 1, 2014.  The stock has par value                                           of $1.00 per share and was sold at $30 per share.  Please provide the journal entry for this transaction. 12.3-34Dallkin Corporation issued 5,000 shares of common stock on January 1, 2015. .
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14.1-11The term cash as used on the statement of cash flows includes all of the following EXCEPT: A) cash due from customers within 30 days. B) cash on hand. C) cash equivalents. D) cash in bank. 14.2-1Operating activities include activities that affect long-term liabilities and stockholders' equity.  14.2-2The financing activities section of the statement of.
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12.6-1The book value of common stock is equal to the total equity less the book value of preferred stock,                                           divided by the number or common shares outstanding. 12.6-2Which of the following is the price for which a person can buy or sell a share of stock?  A) Book.
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13.2-24A 3-for-1 stock split will: A)  triple the par value and drop the number of outstanding shares by one-third. B)  have no effect on the par value, but will affect the number of outstanding shares. C)  have no effect on the number of outstanding shares, but will affect par value. D)  cut the par.
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13.3-41Please refer to the following information for Peartree Company: Common stock, $1.00 par, 100,000 issued, 95,000 outstanding Paid-in capital in excess of par: $2,150,000 Retained earnings:  $910,000 Treasury stock: 5,000 shares purchased at $20 per share If Peartree resold 800 shares of treasury stock for $15 per share, which of the following statements would be.
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13.3-11Please refer to the following information for Peartree Company: Common stock, $1.00 par, 100,000 issued, 95,000 outstanding Paid-in capital in excess of par: $2,150,000 Retained earnings:  $910,000 Treasury stock: 5,000 shares purchased at $20 per share If Peartree resold 1,000 shares of treasury stock for $24 per share, the company would record a gain on.
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13.5-5Comprehensive income is the company’s change in total stockholders’ equity from all sources other than                                           its owners, and sometimes includes items not found on the income statement. 13.5-6Certain types of transactions, other than dividend payments, that are NOT included in the income statement, but have an effect.
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12.1-1The formation of a corporation is generally less complicated than the formation of a partnership.  12.1-2A corporation is a separate legal entity formed under the laws of a particular state.  12.1-3Stockholders of a corporation have unlimited liability for the corporation's debt.  12.1-4A disadvantage of the corporation is the separation between.
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14.3-28Which of the following sections from the statement of cash flows includes activities that affect net income                             on the income statement?  A) The financing section  B) The operating section  C) The investing section  D) The noncash investing and financing section  14.3-29Which of the following sections from the statement.
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12.5-1Declaring and paying dividends causes a decrease in both assets and equity. 12.5-2Paying dividends causes a decrease total paid-in capital. 12.5-3If preferred stock is non-cumulative, then the company does NOT need to pay dividends that were passed in previous years. 12.5-4If preferred stock is cumulative, then the company does NOT need to pay.
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12.5-11A corporation declares a dividend of $.75 per share on 12,500 shares of common stock.  Which of the                                           following would be included in the entry to record the declaration?  A) Retained earnings would be debited for $9,375.  B) Paid-in capital in excess of par would be credited.
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13.3-21Ross Corporation reported the following equity section on its current balance sheet: Common stock, $5 par, 140,000 shares authorized, 50,000 shares issued $250,000 Paid in capital in excess of par–common 200,000 Retained earnings 207,000 Total stockholders' equity $657,000 The corporation purchases 15,000 shares of its common stock at $9.50 per share.  Which of the following                                          .
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12.2-15Which of the following describes retained earnings? A)    Internally generated capital that results from profitable business transactions B)     Externally generated capital that is contributed by shareholders C)     Externally generated capital that is raised from banks and other creditors D)    Internally generated capital that results from employees’ contributions 12.2-16Which of the following describes preferred stock? A)    Stock.
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12.4-21A company had $90,000 of Sales revenue and $55,000 of Expenses.  Please provide the second of three                                           year-end closing entries. 12.4-22A company had $90,000 of Sales revenue and $55,000 of Expenses.  Please provide the third of three year-end closing entries.  (Assume no dividends were paid.) 12.4-23Hot Tamale Company had.
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12.4-11Hot Tamale Company had $120,000 of revenues and $125,000 of expenses. No dividends were paid.  The                             second of the year-end closing entries should include which of the following line items? A)   Credit Retained earnings $125,000. B)   Debit Retained earnings $125,000. C)   Debit Income summary $125,000. D)   Credit Income summary $125,000. 12.4-12Hot Tamale Company.
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13.1-11Which of the following will happen to a stockholder's percentage ownership in the stock of a corporation                                           when the corporation declares a stock dividend?  A) The stockholder's percentage ownership decreases.  B) The stockholder's percentage ownership can increase or decrease.  C) The stockholder's percentage ownership increases.  D) The.
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12.3-14The following information is from the balance sheet of Tudor Corporation as of December 31, 2014. Preferred stock, $100 par $ 500,000 Paid-in capital in excess of par–preferred 35,000 Common stock, $1 par 190,000 Paid-in capital in excess of par–common 380,000 Retained earnings 131,500 Total stockholders' equity $1,236,500 What was the total paid-in capital as of December 31, 2014?  A) $1,236,600  B).
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12.6-11Please refer to the equity section of the balance sheet, below: Preferred stock, $50 par, 4%, cumulative $5,000      1,000 shares authorized, 100 shares outstanding Common stock, $0.01 par 120       1,000,000 shares authorized, 12,000 shares outstanding Paid-in capital in excess of par 359,600 Retained earnings 153,280     Total stockholders' equity $518,000 Assume there are $600 of preferred.
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2.5-31A corporation has 15,000 shares of 10%, $50 par cumulative preferred stock outstanding and 25,000                                           shares of no-par common stock outstanding.  Dividends of $37,500 are in arrears.  At the end of the                                           current               year, the corporation declares a dividend of $120,000. How is.
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12.3-24Moretown Company had the following transactions in 2014, its first year of operations. Issued 30,000 shares of common stock.  Stock has par value of $1.00 per share and was issued at $18.00 per share. Earned net income of $70,000. Paid no dividends. At the end of 2014, what is the total amount of Stockholders’.
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11.5-3If the difference between the effective-interest method of amortizing bond discount and the straight-line                                           method is immaterial, then GAAP permits use of the straight-line method. 11.5-4The time value of money is related to which of the following concepts? A)   Money loses value over time as it is spent. B)   Money.
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11.4-1Interest payable would normally be shown on the balance sheet in current liabilities. 11.4-2FICA tax payable would normally be shown on the balance sheet in long-term liabilities. 11.4-3Accounts payable is always shown on the balance sheet in current liabilities. 11.4-4The current portion of notes payable would normally be shown on the balance sheet.
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14.2-10Which of the following statements about the statement of cash flows is TRUE? A)    The indirect method and the direct method will both show the same end results. B)     The direct method begins with net income and adjusts to calculate operating cash flows. C)     The indirect method shows three types of cash flows,.
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12.4-1When a company records the year-end closing entries, the first step is to close the Revenues to Retained                                           earnings. 12.4-2When a company records the year-end closing entries, the Income summary balance, before it is closed to                             Retained earnings, should be equal to the Net income or.
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14.3-8Arturo Sales purchased some equipment for $12,000 by issuing a 6-month note payable.  Because this                                           was a noncash transaction, it would not be shown in the main body of the statement of cash flows, but                                           in a separate section for noncash investing and financing.
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12.5-21On November 1, 2014, Oster Company declared a dividend of $3.00 per share.  Oster Company has                                           20,000 shares of common stock outstanding and no preferred stock.  The date of record is November 15,                                           and the payment date is November 30, 2014.  Which of the.
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13.3-48At March 31, 2014, the Park Place Company shows the following data on their balance sheet: Stockholders' equity   Common stock, $1 par, 1,000,000 shares authorized, $120,000                           120,000 shares issued, 110,000 shares outstanding   Paid-in capital in excess of par 2,470,000   Retained earnings 5,440,000   Treasury stock, 10,000 shares at $25 (250,000)       Total stockholder's.
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