Zelf24
Jul 24, 2005, 04:00 PM
Hey all, for our final we were given a take-home test for my Accounting 101 class. There are several questions that have stumped me however. If you could lend a helping hand I would be much appreciative. Thanks so much! (This exam is due early tomorrow morning (Monday, 8:00AM 7-25-05)
Q1: What is the total stockholder's equity based on the following data?
Common Stock $900,000
Excess of Issue Price over Par $375,000
Retained Earnings (Deficit) ($50,000)
a. $1,200,000
b. $1,225,000
c. $1,275,000
d. $1,325,000
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Q2: A company with 100,000 authorized shares of $5 par common stock issued 40,000 shares at $7. Subsequently, the company declared a 2% stock dividend on a date when the market price was $9 a share. The effect of the declaration and issuance of the stock dividend is to:
a. decrease retained earnings, increase common stock, and increase paid-in capital
b. increase retained earnings, decrease common stock, and decrease paid-in capital
c. increase retained earnings, decrease common stock, and increase paid-in capital
d. decrease retained earnings, increase common stock, and decrease paid-in capital
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Q3: Which of the following would appear as a prior-period adjustment?
a. loss resulting from the sale of fixed assets
b. difference between the actual and estimated uncollectible accounts receivable
c. error in the computation of depreciation expense
d. liquidating dividend
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Q4: Which of the following is not a part of comprehensive income?
a. foreign currency items
b. additions to stockholders' equity from issuing common stock
c. unrealized gains and losses
d. pension liability adjustments
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Q5: An investor purchases 400 shares of common stock, $25 par, for $17,400. Subsequently, 100 shares were sold for 49.50 per share. What is the amount of gain or loss on the sale?
a. $8,000 gain
b. $600 gain
c. $600 loss
d. $8,000 loss
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Q6: The present value of $25,000 to be received in 2 years, at 12% compounded annually, is (rounded to nearest dollar):
a. $19,930
b. $30,500
c. $22,523
d. $25,000
Q1: What is the total stockholder's equity based on the following data?
Common Stock $900,000
Excess of Issue Price over Par $375,000
Retained Earnings (Deficit) ($50,000)
a. $1,200,000
b. $1,225,000
c. $1,275,000
d. $1,325,000
-------------------
Q2: A company with 100,000 authorized shares of $5 par common stock issued 40,000 shares at $7. Subsequently, the company declared a 2% stock dividend on a date when the market price was $9 a share. The effect of the declaration and issuance of the stock dividend is to:
a. decrease retained earnings, increase common stock, and increase paid-in capital
b. increase retained earnings, decrease common stock, and decrease paid-in capital
c. increase retained earnings, decrease common stock, and increase paid-in capital
d. decrease retained earnings, increase common stock, and decrease paid-in capital
-----------------
Q3: Which of the following would appear as a prior-period adjustment?
a. loss resulting from the sale of fixed assets
b. difference between the actual and estimated uncollectible accounts receivable
c. error in the computation of depreciation expense
d. liquidating dividend
------------------
Q4: Which of the following is not a part of comprehensive income?
a. foreign currency items
b. additions to stockholders' equity from issuing common stock
c. unrealized gains and losses
d. pension liability adjustments
------------------
Q5: An investor purchases 400 shares of common stock, $25 par, for $17,400. Subsequently, 100 shares were sold for 49.50 per share. What is the amount of gain or loss on the sale?
a. $8,000 gain
b. $600 gain
c. $600 loss
d. $8,000 loss
-----------------
Q6: The present value of $25,000 to be received in 2 years, at 12% compounded annually, is (rounded to nearest dollar):
a. $19,930
b. $30,500
c. $22,523
d. $25,000