1) On January 4, Year 1, Barber Company purchased 7,500 sharesof Convell Company for $84,500 plus a broker's fee of $1,500.Convell Company has a total of 37,500 shares of common stockoutstanding and it is presumed the Barber Company will have asignificant influence over Convell. During each of the next twoyears, Convell declared and paid cash dividends of $0.85 per share,and its net income was $97,000 and $92,000 for Year 1 and Year 2,respectively. What is the book value of Barber's investment inConvell at the end of Year 2?
A) $111,050.
B) $86,000.
C) $122,800.
D) $73,250.
E) $123,800.
2) The accountant for Crusoe Company is preparing the company'sstatement of cash flows for the fiscal year just ended. Thefollowing information is available:
Retained earningsbalance at the beginning of the year $ 128,500 Cash dividends declared for theyear 48,500 Proceeds from the sale ofequipment 83,500 Gain on the sale ofequipment 7,500 Cash dividends payable at thebeginning of the year 20,500 Cash dividends payable at theend of the year 23,000 Net income for the year 94,500
The amount of cash dividends paid during the year would be:
A) $253,000.
B) $179,000.
C) $46,000.
D) $258,500.
E) $281,000.
3) On February 15, Jewel Company buys 6,500 shares of MarceloCorp. common stock at $28.68 per share plus a brokerage fee of$475. The stock is classified as long-term available-for-salesecurities. This is the companyâs first and only investment inavailable-for-sale securities. On March 15, Marcelo declares adividend of $1.30 per share payable to stockholders of record onApril 15. Jewel received the dividend on April 15 and ultimatelysells half of the Marcelo stock on November 17 of the current yearfor $29.45 per share less a brokerage fee of $325. The journalentry to record the purchase on February 15 is:
A) Debit Long-Term Investments-AFS $186,420; credit Cash$186,420.
B) Debit Long-Term Investments-Trading $186,895; credit Cash$186,895.
C) Debit Long-Term Investments-HTM $191,425; credit cash$191,425.
D )Debit Long-Term Investments-AFS $186,895; credit Cash$186,895.
E) Debit Long-Term Investments-Trading $186,420; credit Cash$186,420.
4) Jeffreys Company reports depreciation expense of $58,000 forYear 2. Also, equipment costing $194,000 was sold for a $11,800loss in Year 2. The following selected information is available forJeffreys Company from its comparative balance sheet. Compute thecash received from the sale of the equipment.
At December 31 Year 2 Year 1 Equipment $ 700,000 $ 894,000 AccumulatedDepreciation-Equipment 500,000 590,000
A) $57,800.
B) $34,200.
C) $78,200.
D) $46,000.
E) $58,000.
5) Use the following information to compute the cost of goodsmanufactured. Assume that all raw materials used were traceable tospecific units of product.
Beginning rawmaterials $ 6,700 Ending raw materials 5,200 Direct labor 13,450 Raw material purchases 8,600 Depreciation on factoryequipment 7,700 Factory repairs andmaintenance 4,500 Beginning finished goodsinventory 11,400 Ending finished goodsinventory 10,100 Beginning work in processinventory 6,900 Ending work in processinventory 7,500
A) $35,750.
B) $35,150.
C) $36,650.
D) $36,350.
E) $42,650.
6) Memphis Company anticipates total sales for April, May, andJune of $830,000, $930,000, and $980,000 respectively. Cash salesare normally 30% of total sales. Of the credit sales, 30% arecollected in the same month as the sale, 65% are collected duringthe first month after the sale, and the remaining 5% are collectedin the second month. Compute the amount of accounts receivablereported on the companyâs budgeted balance sheet for June 30.
$480,200.
$543,900.
$512,750.
$851,950.
$922,950.
7) Landmark Corp. buys $400,000 of Schroeter Company's 7%,5-year bonds payable at par value on September 1. Interest paymentsare made semiannually. Landmark plans to hold the bonds for the5-year life. When the bonds mature, the journal entry to record theproceeds will be:
A) Debit Cash $400,000; credit Interest Receivable $400,000.
B) Debit Cash $400,000; credit Long-Term Investments-HTM$400,000.
C) Debit Cash $400,000; credit Interest Revenue $400,000.
D) Debit Cash $400,000; credit Bonds Payable $400,000.
E) Debit Long-Term Investments-HTM $400,000; credit Cash$400,000.
1) On January 4, Year 1, Barber Company purchased 7,500 sharesof Convell Company for $84,500 plus a broker's fee of $1,500.Convell Company has a total of 37,500 shares of common stockoutstanding and it is presumed the Barber Company will have asignificant influence over Convell. During each of the next twoyears, Convell declared and paid cash dividends of $0.85 per share,and its net income was $97,000 and $92,000 for Year 1 and Year 2,respectively. What is the book value of Barber's investment inConvell at the end of Year 2?
A) $111,050.
B) $86,000.
C) $122,800.
D) $73,250.
E) $123,800.
2) The accountant for Crusoe Company is preparing the company'sstatement of cash flows for the fiscal year just ended. Thefollowing information is available:
| Retained earningsbalance at the beginning of the year | $ | 128,500 |
| Cash dividends declared for theyear | 48,500 | |
| Proceeds from the sale ofequipment | 83,500 | |
| Gain on the sale ofequipment | 7,500 | |
| Cash dividends payable at thebeginning of the year | 20,500 | |
| Cash dividends payable at theend of the year | 23,000 | |
| Net income for the year | 94,500 | |
The amount of cash dividends paid during the year would be:
A) $253,000.
B) $179,000.
C) $46,000.
D) $258,500.
E) $281,000.
3) On February 15, Jewel Company buys 6,500 shares of MarceloCorp. common stock at $28.68 per share plus a brokerage fee of$475. The stock is classified as long-term available-for-salesecurities. This is the companyâs first and only investment inavailable-for-sale securities. On March 15, Marcelo declares adividend of $1.30 per share payable to stockholders of record onApril 15. Jewel received the dividend on April 15 and ultimatelysells half of the Marcelo stock on November 17 of the current yearfor $29.45 per share less a brokerage fee of $325. The journalentry to record the purchase on February 15 is:
A) Debit Long-Term Investments-AFS $186,420; credit Cash$186,420.
B) Debit Long-Term Investments-Trading $186,895; credit Cash$186,895.
C) Debit Long-Term Investments-HTM $191,425; credit cash$191,425.
D )Debit Long-Term Investments-AFS $186,895; credit Cash$186,895.
E) Debit Long-Term Investments-Trading $186,420; credit Cash$186,420.
4) Jeffreys Company reports depreciation expense of $58,000 forYear 2. Also, equipment costing $194,000 was sold for a $11,800loss in Year 2. The following selected information is available forJeffreys Company from its comparative balance sheet. Compute thecash received from the sale of the equipment.
| At December 31 | Year 2 | Year 1 | ||||
| Equipment | $ | 700,000 | $ | 894,000 | ||
| AccumulatedDepreciation-Equipment | 500,000 | 590,000 | ||||
A) $57,800.
B) $34,200.
C) $78,200.
D) $46,000.
E) $58,000.
5) Use the following information to compute the cost of goodsmanufactured. Assume that all raw materials used were traceable tospecific units of product.
| Beginning rawmaterials | $ | 6,700 | |
| Ending raw materials | 5,200 | ||
| Direct labor | 13,450 | ||
| Raw material purchases | 8,600 | ||
| Depreciation on factoryequipment | 7,700 | ||
| Factory repairs andmaintenance | 4,500 | ||
| Beginning finished goodsinventory | 11,400 | ||
| Ending finished goodsinventory | 10,100 | ||
| Beginning work in processinventory | 6,900 | ||
| Ending work in processinventory | 7,500 |
A) $35,750.
B) $35,150.
C) $36,650.
D) $36,350.
E) $42,650.
6) Memphis Company anticipates total sales for April, May, andJune of $830,000, $930,000, and $980,000 respectively. Cash salesare normally 30% of total sales. Of the credit sales, 30% arecollected in the same month as the sale, 65% are collected duringthe first month after the sale, and the remaining 5% are collectedin the second month. Compute the amount of accounts receivablereported on the companyâs budgeted balance sheet for June 30.
$480,200.
$543,900.
$512,750.
$851,950.
$922,950.
7) Landmark Corp. buys $400,000 of Schroeter Company's 7%,5-year bonds payable at par value on September 1. Interest paymentsare made semiannually. Landmark plans to hold the bonds for the5-year life. When the bonds mature, the journal entry to record theproceeds will be:
A) Debit Cash $400,000; credit Interest Receivable $400,000.
B) Debit Cash $400,000; credit Long-Term Investments-HTM$400,000.
C) Debit Cash $400,000; credit Interest Revenue $400,000.
D) Debit Cash $400,000; credit Bonds Payable $400,000.
E) Debit Long-Term Investments-HTM $400,000; credit Cash$400,000.
Related questions
On January 4, Year 1, Barber Company purchased 7,500 shares ofConvell Company for $84,500 plus a broker's fee of $1,500. ConvellCompany has a total of 37,500 shares of common stock outstandingand it is presumed the Barber Company will have a significantinfluence over Convell. During each of the next two years, Convelldeclared and paid cash dividends of $0.85 per share, and its netincome was $97,000 and $92,000 for Year 1 and Year 2, respectively.What is the book value of Barber's investment in Convell at the endof Year 2?
A) $111,050.
B) $86,000.
C) $122,800.
D) $73,250.
E) $123,800.
The Ballentine Company expects sales for June, July, and Augustof $67,000, $73,000, and $63,000, respectively. Experience suggeststhat 40% of sales are for cash and 60% are on credit. The companycollects 55% of its credit sales in the month following sale, 40%in the second month following sale, and 5% are not collected. Whatare the company's expected cash receipts for August from itscurrent and past sales?
A) $121,800.
B) $40,170.
C) $65,370.
D) $92,150.
E) $84,000.
Current information for the Healey Company follows:
| Beginning rawmaterials inventory | $ | 25,200 | |
| Raw material purchases | 70,000 | ||
| Ending raw materialsinventory | 26,600 | ||
| Beginning work in processinventory | 32,400 | ||
| Ending work in processinventory | 38,000 | ||
| Direct labor | 52,800 | ||
| Total factory overhead | 40,000 | ||
All raw materials used were traceable to specific units of product.Healey Company's Cost of Goods Manufactured for the year is:
A) $167,000.
B) $155,800.
C) $159,000.
D) $158,600.
E) $161,400.
