Final Exam ACCT301 Spring


Question Description:

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Ma’am, Good morning. I hope you had a great time while on leave! I have attached my final exam which is multiple choice, I don’t really need the strategy but rather I need assistance with you pointing me in the right direction. I have to emphasize that the deadline is Sunday May 8th by 5pm eastern time. If you think that you will not be able to assist can you please let me know soonest so I can plan accordingly. As always, thank you for your support and I look forward to your expertise. ACCT301 – FINAL EXAM.pdf Final Exam ‐ ACCT301 ‐ Spring 2016 Name: Section: Date: 1. (Multiple Choice) Stringer Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. The entry to record this transaction includes a: A. B. C. D. E. 2. debit to Cash for $10,000. debit to Paid-in Capital in Excess of Par for $27,500. debit to Common Stock for $10,000. credit to Gain on Stock $37,500. None of these. (Multiple Choice) On April 1, 20X6, Ratchford Industries issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and April 1. The entry to record issuance of the bonds includes: A. B. C. D. E. 3. a debit to Cash of $500,000. a credit to Bonds Payable of $503,000. a debit to Premium on Bonds Payable of $15,000. All of the above. None of these. (Multiple Choice) When interest income on a bond investment is less than the cash received: A. B. C. D. E. 4. the Investment in Bond account is credited. the bond was likely purchased at a premium. Interest Income is credited. All of these. None of these. (True or False) The presence of goodwill in a balance sheet suggests that accounts of the subsidiary have not yet been consolidated with the parent company. 5. (Multiple Choice) Which formula "calculates" the return on assets ratio? A. B. C. D. E. 6. (Net Income + Interest Expense)/Average Assets. (Net Income + Extraordinary Items)/Average Assets (Net Income + Discontinued Operations)/Average Assets (Net Income + Income Tax Expense)/Average Assets. None of these. (Multiple Choice) In an effort to concentrate its resources in more profitable areas, Southern Steel Corporation recently sold its family pizza restaurant segment. The disposal constitutes: A. an extraodinary item. B. a discontinued operation which should be treated as a prior period adjustment. C. a discontinued operation which should be disclosed net-of-tax effects. D. a portion of income from continuing operations. E. None of these. 7. (Multiple Choice) Assuming use of the direct approach for preparing a statement of cash flows, which of the following would be most likely reported as a line item in the "operating activity" section? A. B. C. D. E. 8. Dividends paid to shareholders. Cash paid for taxes. Proceeds from issuing capital stock. A reduction in inventory levels. None of these. (Multiple Choice) Finished goods ending inventory of $10,000 is erroneously determined to be $100,000. The effect of this error will be to: A. B. C. D. E. overstate assets by $90,000. overstate income by $90,000. understate income by $90,000. Both A and B. None of these. 9. (Essay) On May 21, Vincent worked 6 hours on Job 657, and 2 hours on general "overhead activities." Vincent is paid $15 per hour. Overhead is applied based on $4 per direct labor hour. Job 657 also entailed $30 of direct material. On May 21, Vincent used $7 of indirect material. Indirect material is included in the overhead application rate. Of these amounts, how much total cost should be allocated to Job 657 for May 21? 10. (Multiple Choice) Jose Company uses a job order cost system. At the end of an accounting period, Jose has a debit balance in the Factory Overhead account. This would indicate: A. B. C. D. E. 11. a loss for the period. underapplied overhead. overapplied overhead. a malfunction in the job order cost system. None of these. (Multiple Choice) If beginning work in process was 600 un

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