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1.Acompany borrowed $50,000 cash from the bank and signed a 6-yearnote at 7%. The present value of an annuity for 6 years at 7% is4.7665. The annual annuity payments equal (closest to):

$10,489.88.
$11,004.88.
$45,500.00.
$11,739.88.
$47,550.00.


2. A corporation declared and issued a 15% stock dividend onNovember 1. The following information was available immediatelyprior to the dividend:


Retained earnings $750,000
Shares issued and outstanding 60,000
Market value per share $15
Par value per share $5


The amount that the total stockholders' will increase (decrease) asa result of recording this stock dividend is:

$45,000.
$135,000.
$(45,000).
$(135,000).
$0.




3.A company's sales in Year 1 were $250,000 and in Year 2 were$287,500. Using Year 1 as the base year, the sales trend percentfor Year 2 is:
87%.
100%.
115%.
15%.
13%.









4.A company uses the weighted average method for inventory costing.During a period, a production department had 20,000 units inbeginning goods in process inventory which were 40% complete; thedepartment completed and transferred 165,000 units. At the end ofthe period, 22,000 units were in the ending goods in processinventory and are 75% complete. All of these are with respect tolabor. The production department had labor costs in the beginninggoods is process inventory of $99,000 and total labor costs addedduring the period are $726,825. Compute the equivalent cost perunit for labor.
$4.40.
$4.76.
$4.19.
$4.55.
$4.61.




5.A company manufactures and sells a product for $120 per unit. Thecompany's fixed costs are $68,760, and its variable costs are $90per unit. The company's break-even point in units is:
2,292.
573.
764.
327.
840.



6.Stritch Company is trying to decide how many units of merchandiseto order each month. The company's policy is to have 20% of thenext month's sales in inventory at the end of each month. Projectedsales for August, September, and October are 30,000 units, 20,000units, and 40,000 units, respectively. How many units must bepurchased in September?
14,000.
20,000.
22,000.
24,000.
28,000.


7.A company is considering the purchase of a new piece of equipmentfor $90,000. Predicted annual cash inflows from this investment are$36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000 (year4) and $6,000 (year 5). The payback period is:
4.50 years.
4.25 years.
3.50 years.
3.00 years.
2.50 years.

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Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

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Selected transactions completed by Big Water Boating Corporationduring the current fiscal year are as follows:
Jan. 3. Split the common stock 3 for 1 and reduced the par from $90to $30 per share. After the split, there were 750,000 common sharesoutstanding.
Apr. 7. Purchased 50,000 shares of the corporation%u2019s owncommon stock at $33, recording the stock at cost.
May 1. Declared semiannual dividends of $1.40 on 35,000 shares ofpreferred stock and $0.09 on the common stock to stockholders ofrecord on May 15, payable on June 1.
June 1. Paid the cash dividends.
July 29. Sold 36,000 shares of treasury stock at $40. receivingcash.
Nov. 15. Declared semiannual dividends of $1.40, on the preferredstock and $0.15 on the common stock (before the stock dividend). Inaddition, a 2% common stock dividend was declared on the commonstock outstanding. The fair market value of the common stock isestimated at $41.
Dec. 31. Paid the cash dividends and issued the certificates forthe common stock dividend.
Instructions:
Journalize the transactions

Complete each question record transactions


Question 1

Hernandez Company had the following stock transactions duringthe year:

  1. Issued 25,000 shares of $1 par common stock for $25,000.

  2. Issued 20,000 shares of $1 par common stock for $22,000cash.

  3. Issued 22,000 shares of $1 par common stock for $21,000cash.

  4. Issued 2,000 shares of $50 par, 8% preferred stock for $100,000cash.

  5. Issued 1,000 shares of $50 par, 8% preferred stock for $49,000cash.

  6. Issued 1,000 shares of $50 par 8% preferred stock for$51,500

  7. Issued 2,500 shares of no-par common stock for $11,875 cash

  8. Issued 1,500 shares of no par 7% preferred stock for $72,000cash.


Question 2

Kris Kraft Stores had the following stock transactions duringthe year.

  1. Issued 4,000 shares of no par common stock with a stated valueof $10 per share for $40,000 cash.

  2. Issued 6,000 shares of no par common stock with a stated valueof $8 per share for $50,000 cash.

  3. Issued 5,000 shares of no par 6% preferred stock with a statedvalue of $15 per share for $75,000 cash.

  4. Issued 3,000 shares of no par 6% preferred stock with a statedvalue of $20 per share for $58,000 cash.

  5. Issued 10,000 shares of $8 par common stock with a $9 fairmarket value for a building with an uncertain fair marketvalue.

  6. Issued 10,000 shares of $5 common stock for land with a fairmarket value of $50,000.

  7. Issued 8,000 shares of $50 par, 8% preferred stock for land witha fair market value of $405,000.


Question 3

During the year ended December 21, 2013, Smith Company completedthe following transactions:

  1. 04/15 Declared a semiannual dividend of $0.80 per share onpreferred stock and $0.05 per share on common stock to shareholdersof record on 05/05, payable on 05/10. Currently, 4,000shares of $100 par preferred stock and 50,000 shares of $1 parcommon stock are outstanding.

  2. 05/05 Record date of record entry.

  3. 05/10 Paid cash dividends.

  4. 10/15 Declared semiannual dividend of $0.80 per share onpreferred stock and $0.50 per share on common stock to shareholdersof record on November 5, payable on November 20.

  5. 11/5 Record date of record entry.

  6. 11/20 Paid cash dividends

  7. 11/22 Declared a 10% stock dividend to shareholders of record onDecember 8, distributable on December 16. Market valueof the common stock was estimated to be $8.

  8. 12/08 Record date of record entry.

  9. 12/16 issued certificated for common stock dividend.

  10. 12/20 Board of directors declared a two for one common stocksplit.





Journalize the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank.

Jan. 15. Split the common stock 5 for 1 and reduced the par from $75 to $15 per share. After the split, there were 475,000 common shares outstanding.

Feb. 28. Purchased 38,000 shares of the corporation's own common stock at $20, recording the stock at cost.

May 1. Declared semiannual dividends of $3.10 on 30,000 shares of preferred stock and $0.3 on the common stock to stockholders of record on June 1, payable on July 10.

July 10. Paid the cash dividends.

Sept. 7. Sold 27,000 shares of treasury stock at $28, receiving cash.

Oct. 1. Declared semiannual dividends of $3.10 on the preferred stock and $0.36 on the common stock (before the stock dividend).

Oct. 1. A 2% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $30.

Dec. 1. Paid the cash dividends.

Dec. 1. Issued the certificates for the common stock dividend.

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