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Financial Accounting & Bookkeeping

FIN 324: Financial Accounting Practice Exam

1. Chuck McElravy owns Common Grounds Coffee House, near the campus of Manatee College. The business has cash of $2,000, furniture that cost $8,000 and account receivable from customers for $1,000. Debts include accounts payable of $1,000 and a $6,000 note payable. How much equity does McElravy have in the business? Using Mc

Financial Accounting: capitalization of interest on PPE

Capitalization of Interest Wordcrafters Inc. is a book distributor that had been operating in its original facility since 1982. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Wordcrafters since 2002. Wordcraftersâ?? or

Understanding Journal entries from two perspectives

A bank/company just opened with no assets, cash or bills. A company needs cash to operate and accept deposits from the public. When they receive the money, the company will enter the following entry: Cash 1,000 John Doe deposit 100 Mary Smith- deposit

Cost accounting

ACE Corporations incurs a $9 per unit cost for Product A, which it currently manufactures and sells for $13.50 per unit. Instead of manufacturing and selling this product, ACE can purchase Product B for $5 per unit and sell it for $12 per unit. If it does so, unit sales would remain unchanged and $5 of the $9 per unit costs as

Financial Accounting: Journal Entries, Practice Exam

** Please see the attached file for the complete problem description formatted in Excel ** At December 31, 2007, Ruiz Corporation reported the following plant assets. Land $3,000,000 Buildings $26,500,000 Less: Accumulated depreciation?buildings 12,100,000 $14,400,000 Equipment 4

Financial Accounting: Gain or Loss Computation

Last year (2011) Solomon Condos installed a mechanized elevator for its tenants. The owner of the company, Sam Solomon, recently returned from an industry equipment exhibition where he watched a computerized elevator demonstrated. He was impressed with the elevator's speed, comfort of ride, and cost efficiency. Upon returning fr

Financial Accounting: journal entries; practice exam

1. Robert Haddon contributed $70,000 in cash and some land worth $130,000 to open a new business, RH Consulting. Which of the following general journal entries will RH Consulting make to record this transaction? A) Assets $ 200,000 Robert Haddon, Capital $ 200,000 B) Cash and Land $

Bad Debt Accounting and journal entries

See excel where formatting is readable: Presented below is an aging schedule for Joplin Company. Customer Total Not Yet Due Number of Days Past Due 1-30 31-60 61-90 Over 90 Adisy $20,000 $9,000 $11,000 Bloom 30,000 $30,000 Cai 50,000 5,000 5,000 $40,000 Dahl 38,000

Financial Accounting: Stockholders Equity transactions: Practice Exam Question

1. Horner Corporation is authorized to issue 1,000,000 shares of $5 par value common stock. During 2010, its first year of operation, the company has the following stock transactions. Jan. 1 Paid the state $2,000 for incorporation fees. Jan. 15 Issued 500,000 shares of stock at $6 per share. Jan. 30 Attorneys for the com

Federal manufacturers: land charge

Federal Manufacturers, Inc. purchased land with the intention of building its new administrative headquarters on the site. Which of the following costs should be charged to Land? I. Title and recording fees. II. Clearing of trees and grading. III. Interest on loan to purchased land. IV. Architect's fees. V. Installation

Proper accounting for restoration cost

LoJo Developers Inc. purchased a coal mine for $10,000,000. As a condition of the purchased, LoJo agreed to restore the land after mining operations ceased. Restoration costs are estimated at $2,500,000. The proper accounting for these restoration cost is: o Expense them as incurred. o Capitalize and depreciate them over the

Composite life of assets

A schedule of machinery owned by Rain Bird Manufacturing Company is as follows: Estimated Estimated Total Cost Salvage Value Life in Years Machine A $450,000 $30,000

Principles of Financial Accounting: Cash problems, journal entries

E2-1. Prepare the Statement of Cash Flows (Indirect Method) Net income $ 22,000 Investment by Ryan Bond $ 2,200 Depreciation expense 15,000 Decrease in accounts receivable 2,800 Decrease in prepaid expenses 1,250 Increase in accrued expenses 2,300 Decrease in accounts payable (10,450) Withdrawal by Tr

A company wants to raise $20 million: How many shares, cost of issue, go public

A company wants to raise $20 million. Its stock price is now $20 per share. The new issue will be priced at $18 per share. The underwriters' compensation will be 5 percent of the issue price. The firm will also incur expenses of $200,000. 1. How many shares of stock must be sold for the company to net $20 million after co

Management Accounting 20 multiple choice questions

1. Management accounting information can be used for all of the following except: calculate the cost of a product or service. evaluate the performance of a company. project materials needs. evaluate the market price of the stock. 2. Management accounting reports might include informa

Accounting questions: cost of goods sold, gross profit rate, and more...

1. At the beginning of the year, Midtown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Midtown Athletic reported ending inventory of $600,000 and sales of $2,000,000, their cost of goods sold and gross profit rate must be a. $1,000,000 and 50% b. $1,400,000 and 30%