accounting help 10 MC

On January 1, 2013, Daniels Corporation issued $5,000,000, 10-year, 8% bonds at 98. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2013 is

a. b.

c.

d.

2. Levin of of

a. b.

c.

d.

Cash…………………………………………………………………..5,000,000 Bonds Payable ……………………………………………..

Cash…………………………………………………………………..4,900,000 Discount on Bonds Payable!!!!!!!!!!!..100,000

Bonds Payable ……………………………………………..

PremiumonBondsPayable …………………………………..100,000 Cash ………………………………………………………………….. 4,800,000

Bonds Payable ……………………………………………..

Cash…………………………………………………………………..5,000,000 Bonds Payable ……………………………………………… Discount on Bonds Payable …………………………….

5,000,000

5,000,000

4,900,000

4,900,000 100,000

Company issued 500 shares of no-par common stock for $10,000. Which the following journal entries would be made if the stock has a stated value $1 per share?

Cash Common Stock

Cash Common Stock

Paid in Capital in Excess of Par

Cash Common Stock

Paid-in Capital in Excess of Stated Value

Cash Common Stock

Paid-in Capital in Excess of Stated Value

10,000 10,000

10,000

9,500

10,000

500 9,500

500 9,500

9,000 500

3. Quader industries owns 25% of Maxi Company. For the current year, Maxi

reports net income of $1,000,000 and declares and pays a $100,000 cash dividend. Which of the following correctly presents the journal entries to record Quader’s equity in Maxi’s net income and the receipt of dividends from Maxi?

a.Dec.31StockInvestments ………………….. Revenue from Stock Investments

Dec. 31 Cash………………………………………. Stock Investments ………………

b.Dec.31StockInvestments ……………………….. Revenue from Stock Investments

Dec. 31 Cash…………………………………………… Stock Investments …………………..

c.Dec.31StockInvestments …………………… Revenue from Stock Investments

Dec. 31 Cash…………………………………………. Stock Investments …………………

250,000 Dec. 31 Stock Investments………………………25,000

Cash ………………………………….

d.Dec. 31 Revenue from Stock Investments StockInvestments …………………….250,000250250,000

4. A company budgeted unit sales of 200,000 units for January 2013 and 300,000 units for February 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month’s budgeted unit sales. If there were 60,000 units of inventory on hand on December 31, 2013, how many units should be produced in January 2013 in order for the company to meet its goals?

a. 60,000units b. 90,000units c.190,000 units d. 230,000units

DrSharonLevinACCT221FinalExamF13Ver137481

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1,000,000 100,000

1,000,000 100,000

25,000 2,500

750,000 25,000

25,000 2,500

750,000 25,000

25,000

!! !! 5. Poisson, Inc. has the following income statement (in millions):

Poisson, Inc. Income Statement For the Year Ended December 31, 3

7.

How much is the cost of the finished goods on hand from this job? a. $100,000 b. $90,000 c. $80,000

d. $70,000

In the month of November, a department had 40,000 units in beginning work in process that were 80% complete. During November, 60,000 units were transferred into production from another department. At the end of November there were 30,000 units in ending work in process that were 30% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for November were

a. 90,000equivalentunits. b. 100,000equivalentunits. c.104,000 equivalent units. d. 80,000equivalentunits.

Net Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income

$10,000 3,500 6,500 5,000 $1,500

Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

a. 30% b. 35% c. 65% d. Noneoftheabove

6. Rose, Inc. completed Job No. B14 during 2013. The job cost sheet listed the following:

Direct materials Direct labor Manufacturing overhead applied Units produced Units sold

$50,000 $30,000 $20,000

10,000 units 3,000 units

8. A company developed the following per-unit standards for its product: 1.75

pounds of direct materials at $5 per pound. Last month, 3,000 pounds of direct materials were purchased for $15,700. The direct materials price variance for last month was

a. $500unfavorable b. $700unfavorable c.$500 favorable d. $700favorable

9. In incremental analysis,

a. only fixed costs are relevant b. only variable costs are relevant c. costs are relevant if they change between alternatives d. costs are not relevant if they change between alternatives

10. A company’s planned activity level for next year is expected to be 200,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable Indirect materials$300,000

Indirect labor400,000 Factory supplies100,000

Fixed Depreciation

Taxes Supervision

$80,000 70,000 50,000

A flexible budget prepared at the 225,000 machine hours level of activity would show total manufacturing overhead costs of

a. $800,000 b. $900,000 c. $1,000,000 d. $1,100,000