acct221 full course latest 2015 december [ all assignment all quizes all homework and final

SEC 10-K Project

You will be asked to select a company that is publicly traded. You must research and secure the SEC 10-K Annual Report for the most recent year. This is often available at the company web site. Look for Investor Information or Company Information. Save the file to your computer for access. There is no need to print as the report is usually 100 pages or more.

Your corporation must:

1. be publicly traded and have an SEC 10-K report for the current or most recent prior year
2. have an Accounts Receivable and Inventory account
3. be based in the United States

Your corporation may not:

1. be the same corporation you used for SEC projects in other classes
2. be the same corporation a classmate selected
3. be a bank or any other type of financial institution
4. be a hotel or other service-oriented business

Here are a few examples of companies that do not meet the project requirements and you should not choose companies like these:

• Google (service company)
• UPS (service company)
• FedEx (service company)
• Bank of America (financial company)

Note that none of these companies sell a tangible product. As a result, they will not have significant inventory on their balance sheets, which is a requirement for the project.

After choosing a company, post its name to the week 1 discussion forum for my approval. Each student must select a different company so read the company names selected by classmates before posting your company to make sure that it has not already been selected. You will use this company for discussions during the class.

Paper Requirements

• You will write a 2 – 3 page paper, single spaced, one inch margins, 12-pt font, with double space between paragraphs. Your paper should comment on the financial statements for your company as they relate to the information presented in chapters 12 – 17 of your textbook, including the notes to the financial statements. Do not consider information from chapters 18 – 25 in your paper.
• At a minimum, use the following headings to organize your paper:
• Introduction
• Balance Sheet
• Income Statement
• Statement of Cash Flows
• Conclusion
• References
• Exhibits
• You will also be required to include the Income Statement, Balance Sheet and Cash Flow Statement as an attachment to your report under the Exhibits heading (you can cut and paste directly from the 10-K report).
• Avoid academic dishonesty. Write your paper, read it, and edit. Use your own words, and don’t steal from another student or the internet.
• APA style is required for in-text citations and the reference list. Purdue University’s Online Writing Lab has a good website that summarizes APA citations that you can consult.
• Ask questions if any of the requirements are unclear.

Additional Information

• Page count does not include title page, tables and exhibits, and reference list.
• Please include a title page.
• Include in-text citations in APA format.
• Take care to comply with the policy for academic honesty.
• Write your paper, in your own words, using accounting terminology from our textbook and explaining how these relate to the financial statements of your company.
• Our discussion postings during the semester should assist you in completing this paper.
• Visit the Accounting Toolbox in the Course Content of our LEO Classroom.
• The Accounting Toolbox is a constant resource in our undergraduate accounting courses.
• Links and explanations to assist you with this paper may appear in this resource.
• Additional information will be posted in the week 1 discussion area of LEO Classroom. Please make sure you review carefully and ask questions if you have any.

SEC 10-K PowerPoint Presentation

• You will also be required to prepare a brief PowerPoint presentation between 6 to 10 slides (not including title and reference slides).
• Consider presenting information in charts, graphs, and/or tables to make your presentation easier to read by an audience.
• Avoid having large blocks of text because this is difficult for an audience to read.
• Avoid copying blocks of text directly from your paper.
• You can include speaker’s notes to show what you’d “speak” if you were giving the presentation. However, you should avoid copying text directly from your paper since people speak different than they write. Plus if you simply copy text from your paper as your speaker’s notes, you’ll end up reading your presentation, which will sound stilted since, again, people speak differently than they write.
• Include a reference slide in APA format.

Due Dates

quizes

quiz 1

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Question 1

Powder Corporation declared, but had not yet paid, dividends on the 10,000 shares of 6%, $10 par value cumulative preferred stock it had outstanding for the year. The weighted average number of common shares outstanding and net income for the year were 50,000 shares and $90,000, respectively. Earnings per share equals:

Question 2

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $25,000 and that the preferred stock is not cumulative, common stockholders should receive total 2014 dividends of:

Question 3

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $80,000 and that the preferred stock is cumulative with two years' preferred dividends in arrears on December 31, 2013, the preferred stockholders should receive 2014 dividends totaling:

Question 4

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends in 2014 were $35,000 and that the preferred stock is cumulative with one year's preferred dividends in arrears on December 31, 2013, the preferred stockholders should receive 2014 dividends totaling:

Question 5

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $45,000, that the cumulative preferred stock was issued on January 1, 2013, and that $10,000 of preferred dividends were declared and paid in 2013, the common stockholders should receive 2014 dividends totaling:

Answer: 7000

Question 6

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that total dividends declared in 2014 were $60,000 and that the cumulative preferred stock dividends have not been paid after 2012, the common stockholders should receive total 2014 dividends of:

Answer:

Question 7

Oceanview Wholesale Merchandise had 20,000 shares of 6%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2014. Assuming that the total dividends declared in 2014 were $190,000 and that the cumulative preferred stock received dividends in the following manner: In full up to 2010, $18,000 in 2011, $4,000 in 2012, and $15,000 in 2013; common stockholders should receive total 2014 dividends of:

Answer: 131000

Question 8

Restrictions of retained earnings may result from each of the following except:

Question options:

voluntary restrictions.

prior period adjustment restrictions.

legal restrictions.

contractual restrictions.

Question 9

Tina Corporation issued 4,000 shares of $10 par value common stock in exchange for a truck. The truck had a fair market value of $65,000. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par - CS for:

Question options:

$40,000.

$25,000.

$65,000.

$20,000.

Question 10

Trinity Manufacturing declared a 10% stock dividend when it had 150,000 shares of $3 par value common stock outstanding. The market price per common share was $11 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to:

Question options:

Retained Earnings for $45,000.

Common Stock for $45,000.

Common Stock Dividends Distributable for $180,000.

Paid-in Capital in Excess of Par - CS for $120,000.

Question 11

Arthur Company paid $39,000 to buy 3,000 shares of its $5 par value common stock for the treasury. The stock was originally sold for $27,000. The entry to record the purchase includes a:

Question options:

debit to Treasury Stock for $39,000.

debit to Treasury Stock for $15,000.

credit to Treasury Stock for $27,000.

credit to Common Stock for $27,000.

Question 12

The officer who is responsible for maintaining the company's cash position is the:

Question options:

controller.

president.

treasurer.

vice-president of finance.

Question 13

Hallery Corporation issued 600 shares of 10% $15 par convertible preferred stock for $12,000. The entry to record the declaration of the annual cash dividend is:

Question options:

debit Cash Dividends $1,200 and credit Cash $1,200.

debit Cash Dividends $1,200 and credit Dividends Payable $1,200.

debit Cash Dividends $900 and credit Cash $900.

debit Cash Dividends $900 and credit Dividends Payable $900.

Question 14

The purchase of treasury stock:

Question options:

decreases total assets and decreases total stockholders' equity.

increases total assets and decreases total stockholders' equity.

increases total assets and increases total stockholders' equity.

decreases total assets and increases total stockholders' equity.

Question 15

The resale of treasury stock for an amount greater than its cost:

Question options:

increases total assets and decreases total stockholders' equity.

decreases total assets and increases total stockholders' equity.

increases net income.

increases total assets and increases total stockholders' equity.

Question 16

Each of the following decreases retained earnings except:

Question options:

stock splits.

cash dividends.

large stock dividends.

small stock dividends.

Question 17

Treasury stock is reported in the balance sheet as a deduction from:

Question options:

paid-in capital and retained earnings.

capital stock.

additional paid-in capital.

retained earnings.

Question 18

Watkins, Inc. paid $48,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a:

Question options:

debit to Paid-in Capital from Treasury Stock for $45,000.

debit to Retained Earnings for $48,000.

credit to Common Stock for $6,000.

credit to Paid-in Capital from Treasury Stock for $6,000.

Question 19

Restrictions of retained earnings:

Question options:

are reported on the balance sheet as liabilities.

do not change total stockholders' equity.

are reported as expenses on the income statement.

provide insurance coverage for contingencies.

Question 20

Ownership of common stock ordinarily carries the right to:

Question options:

declare dividends.

establish a drawing account.

vote on corporate actions that require stockholder approval.

enter into contracts for the corporation.

Question 21

A corporation is formed when:

Question options:

it receives a charter from its president.

it is granted by-laws by the federal government.

None of the other choices are correct.

it borrows money.

Question 22

Which of the following may either increase or decrease retained earnings?

Question options:

Stock dividends.

Prior period adjustments.

Disposals of treasury stock.

Net income.

Question 23

Common Stock Dividends Distributable is reported in the balance sheet:

Question options:

as an asset.

as an addition to retained earnings.

in paid-in capital as an addition to common stock issued.

as a liability.

Question 24

Under the equity method of accounting, the investment in common stock is initially recorded at cost and the investment account is subsequently:

Question options:

debited for cash dividends received and credited for the investor's share of investee net income.

credited for cash dividends received and debited for the investor's share of investee net income.

credited for cash dividends received.

debited for the investor's share of investee net income.

Question 25

The preparation of consolidated financial statements are not useful to:

Question options:

creditors of the company.

the subsidiary company.

the parent company.

only the parent and the subsidiary company.

Question 26

The account Unrealized Loss—Income is reported:

Question options:

in the other expenses and losses section of the income statement.

in the operating section of the income statement.

as a contra account in the stockholders' equity section of the balance sheet.

as a contra account in the current asset section of the balance sheet.

Question 27

The cost method of accounting for long-term investments in common stock is typically used when the investor:

Question options:

has a controlling interest.

recognizes any goodwill when preparing consolidated financial statements.

owns between 20% and 50% of the investee's outstanding common stock.

owns less than 20% of the investee's common stock.

Question 28

Dior Manufacturing purchased 100% of Venus, Inc. common stock for $900,000 when Venus had stockholders' equity consisting of $400,000 of common stock and $300,000 of retained earnings. In the consolidated balance sheet, Dior's investment in Venus will be shown at:

Question options:

$0.

$900,000.

$700,000.

$100,000.

Question 29

At the end of its first year, the trading securities portfolio consisted of the following common stocks:

Cost Market

Cinnamon Corporation $69,600 75,000

Ling, Inc. $90,000 $80,700

Owens Corporation $120,000 $113,000

The unrealized loss to be recognized under the fair value method is:

Question options:

$9,300.

$10,900.

$7,000.

$16,300.

Question 30

Willow Corporation purchased 2,000 shares of Apex common stock at $70 per share plus $4,000 brokerage fees as a short-term investment. The shares were subsequently sold at $80 per share less $4,800 brokerage fees. The cost of the securities purchased and gain or loss on the sale were:

Question options:

Cost Gain or Loss

$140,000 $11,200 gain

Cost Gain or Loss

$140,000 $20,000 gain

Cost Gain or Loss

$144,000 $11,200 gain

Cost Gain or Loss

$144,000 $11,200 loss

Question 31

Adam Corporation purchased 3,000 shares of Ozark Company's common stock for $12 per share as a long-term available-for-sale investment on June 30, 2014. Ozark declared and paid a cash dividend of $1.00 per share on its common stock on September 30, and had a closing fair value of $18 per share on December 31. Assuming this investment is appropriately accounted for using the fair value method, it will increase Adam's 2014 income before taxes by:

Question 32

Clayton Inc. purchased 30% of the outstanding common stock of Austin Industries on January 1, 2014, for $180,000. Austin reported net income of $70,000 for 2014 and declared and paid cash dividends on common stock of $30,000. The amount of Clayton's investment in Austin on December 31, 2014, should be:

Question 33

Pacific Company bought 35% of the outstanding common stock of Atlantic Inc. on January 1, 2014, for $400,000. Atlantic reported net income of $200,000 for 2014 and declared and paid no dividends for the year. This investment was sold for $500,000 on December 31, 2014. Pacific should report a gain on sale of this investment on its 2014 income statement of:

Question 34

Copper Inc. accounts for its investment in Ridge Corporation using the fair value method. Copper bought 3,000 shares (5%) of Ridge's outstanding common stock for $28 per share on January 1, 2014. Ridge earned $3 per share for 2014, declared and paid cash dividends of $1 per common share, and had a closing fair value of $24 p

quiz 2

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Question 1

Cash provided by operating activities:

Question options:

summarizes cash flows relating to the purchase and disposal of long-lived assets.

decreases when long-term debt is repaid.

may be larger than net income.

equals the change in cash for the year.

Question 2

Nancy's Cookie Shop reported equipment at $120,000 and $30,000 accumulated depreciation on its December 31, 2013, balance sheet. During 2014, the shop purchased equipment costing $30,000 and sold equipment costing $10,000 (book value $4,000) for $1,000. On December 31, 2014, net equipment was $98,000. Using the indirect method, Samantha's would report depreciation expense on its statement of cash flows for 2014 of:

Question options:

$18,000.

$22,000.

$14,000.

$30,000.

Question 3

Short-term liquidity ratios include the:

Question options:

debt to total assets ratio.

acid-test ratio.

profit margin ratio.

payout ratio.

Question 4

Sunshine Paint reported sales of $500,000, total assets of $300,000, total owners' equity of $160,000, current assets of $100,000, current liabilities of $40,000, and cash of $30,000. In a common-size analysis of the balance sheet, cash would be shown as:

Question options:

10%.

6%.

30%.

50%.

Question 5

The use of common-size analysis financial statements is an example of:

Question options:

ratio analysis.

horizontal analysis.

liquidity analysis.

vertical analysis.

Question 6

The purchase of an office building by issuing long-term notes payable should be reported as a:

Question options:

cash outflow in the investing section of the statement of cash flows.

noncash investing and financing activity.

cash outflow in the operating section of the statement of cash flows.

cash outflow in the financing section of the statement of cash flows.

Question 7

Which of the following is a solvency ratio?

Question options:

Debt to total assets ratio.

Asset turnover ratio.

Return on assets ratio.

Acid-test ratio.

Question 8

Wilson Company had inventory of $660,000 and $540,000 on December 31, 2013, and December 31, 2014, respectively. Cost of goods sold for 2014 was $4,200,000. Average days to sell the inventory is approximately:

Question options:

46.9.

52.1.

57.4.

6.4.

Question 9

Which of the following statements is true?

Question options:

High asset turnover is a sign of efficient use of assets.

The price-earnings ratio is a long-term solvency ratio.

The acid-test ratio applies to manufacturing companies but not to service or retailing businesses.

The current ratio measures the current profitability of the owners' investment.

Question 10

In the statement of cash flows, the activities that affect cash flows are listed in the following order:

Question options:

operating, investing, financing.

operating, financing, investing.

investing, financing, operating.

financing, operating, investing.

Question 11

A transaction involving a loss on the disposal of equipment with the indirect method of presentation affects cash provided (used) by:

Question options:

financing activities and investing activities.

operations, financing activities, and investing activities.

operations and financing activities.

operations and investing activities.

Question 12

One major purpose of the statement of cash flows is to provide information about:

Question options:

the firm's resources and claims against those resources.

the firm's cash receipts and payments during a period.

the firm's profitability.

changes in retained earnings.

Question 13

One cost which is part of both manufacturing overhead and total manufacturing costs is:

Question options:

direct materials.

direct labor.

factory utilities.

selling and administrative costs.

Question 14

Manufacturing costs are typically classified as:

Question options:

product costs or period costs.

direct materials, direct labor, or selling and administrative.

direct materials or direct labor.

direct materials, direct labor, or manufacturing overhead.

Question 15

A credit balance in the Manufacturing Overhead account at the end of an interim month means that:

Question options:

the balance should be reported as a prepaid expense in the monthly balance sheet.

cost of goods sold should be debited on the monthly income statement.

overhead has been overapplied.

corrective action by management is necessary.

Question 16

In a job order cost system, which of the following accounts is not a control account?

Question options:

Raw Materials Inventory.

Factory Labor.

Manufacturing Overhead.

Finished Goods Inventory.

Question 17

A job order cost system would most likely be used by a(n):

Question options:

specialty printing company.

automobile manufacturer.

cement manufacturer.

paint manufacturer.

Question 18

The formula for computing a predetermined overhead rate is:

Question options:

estimated annual overhead costs ÷ estimated annual operating activity.

estimated annual overhead costs ÷ actual annual operating activity.

actual annual overhead costs ÷ estimated annual operating activity.

actual annual overhead costs ÷ actual annual operating activity.

Question 19

An example of a period cost, as opposed to a product cost, is:

Question options:

factory utilities.

depreciation on the factory building.

wages of factory workers.

salesperson's commissions.

Question 20

When there is beginning work in process, units transferred out are computed by subtracting:

Question options:

ending work in process units from the units started into production.

beginning work in process units from the units to be accounted for.

ending work in process units from the units accounted for.

beginning work in process units from the units started into production.

Question 21

A production cost report contains sections for:

Question options:

unit costs.

units to be accounted for.

All three of the other choices are correct.

costs accounted for.

Question 22

Which of the following does not describe a characteristic of process costing?

Question options:

Job cost sheets must pass from one production department to the next on a daily basis.

Work in process accounts are maintained for each production department.

All units of production receive precisely the same amount of material, labor, and overhead.

Once production begins, it continues until the finished product emerges.

Question 23

Given the following data, compute equivalent units of production for conversion costs:

• Beginning Work in Process—4,000 units, 40% complete

• Units Started into Production—40,000 units

• Ending Work in Process—3,000 units, 20% complete.

Question options:

41,600.

43,000.

39,000.

42,200.

Question 24

Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Direct materials used is:

Question options:

$410,000.

$400,000.

$430,000.

$390,000.

Question 25

Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume direct materials is $400,000. Total manufacturing costs equal:

Question options:

$900,000.

$780,000.

$600,000.

$700,000.

Question 26

Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume manufacturing costs is $850,000. Cost of goods manufactured equals:

Question options:

$853,000.

$847,000.

$850,000.

$854,000.

Question 27

Raw materials inventory, January 1 $20,000

Raw materials inventory, December 31 10,000

Work in process inventory, January 1 6,000

Work in process inventory, December 31 9,000

Finished goods inventory, January 1 16,000

Finished goods inventory, December 31 20,000

Raw materials purchases 400,000

Direct labor 200,000

Factory utilities 75,000

Indirect labor 45,000

Factory depreciation 180,000

Selling & administrative expenses 210,000

Assume goods manufactured is $870,000. The cost of goods sold is:

Question options:

$874,000.

$867,000.

$870,000.

$866,000.

quiz 3

Question 1 1 / 1 point

Variable costs, as activity increases, will:

Question options:

increase per unit.

increase in total.

remain constant per unit.

increase in total and remain constant per unit.

Question 2 1 / 1 point

A cost that increases in total, but not proportionately with increases in the activity level, is a(n):

Question options:

variable cost.

variable cost with an unusual behavior pattern.

fixed cost.

mixed cost.

Question 3 1 / 1 point

The assumptions that underlie basic CVP analysis include all of the following except:

Question options:

when more than one product is sold, total sales will be in a constant sales mix.

the behavior of both costs and revenues is linear throughout the relevant range.

All of three of the other choices are assumptions.

all costs can be classified as variable or fixed with reasonable accuracy.

Question 4 1 / 1 point

Jameson Company desires net income of $1,100,000 when it has $2,500,000 of fixed costs and variable costs of 60% of sales. Required sales equals:

Question options:

$6,250,000.

$2,750,000.

$9,000,000.

$6,000,000.

Question 5 1 / 1 point

A company's break-even point can be decreased by decreasing:

Question options:

the selling price.

the contribution margin.

variable costs per unit.

the contribution margin ratio.

Question 6 0 / 1 point

Sutton Company produced 98,000 units in 46,000 direct labor hours. Production for the period was estimated at 100,000 units and 50,000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at:

Question options:

50,000 hours and 46,000 hours.

49,000 hours and 46,000 hours.

49,000 hours and 50,000 hours.

46,000 hours and 46,000 hours.

Question 7 1 / 1 point

A flexible budget:

Question options:

is, in essence, a series of static budgets at different levels of activity.

can be prepared for each of the types of budgets included in a master budget.

increases budget allowances both directly and proportionately for variable costs as production increases.

All three of the other choices are correct.

Question 8 1 / 1 point

The initial budget prepared in the master budget is the:

Question options:

sales budget.

budgeted balance sheet.

production budget.

budgeted income statement.

Question 9 1 / 1 point

Which of the following is true with regard to budgeting vs. long-range planning?

Question options:

The maximum length for both usually is a year, with shorter periods of time also common.

Both tend to be very detailed.

They are the same in all significant aspects.

Budgeting is oriented more toward short-term goals; long-range planning toward long-term goals.

Question 10 1 / 1 point

Which of the following is false with regard to budgetary planning?

Question options:

The starting point for the budgets of a not-for-profit organization is generally receipts, rather than expenditures.

A merchandising company uses a purchases budget instead of a production budget.

Budgets may be used by manufacturing companies, merchandising companies, service enterprises, and not-for-profit organizations.

For a service enterprise, the critical factor in budgeting is coordinating professional staff needs with anticipated services.

Question 11 1 / 1 point

Which of the following is true with regard to budgetary planning?

Question options:

The cash budget is often considered to be the most important output in preparing financial budgets.

Generally accepted accounting principles require the budgets be prepared at least annually.

The human behavior aspects of budgeting, while they should not be ignored, are generally of little real significance.

The likelihood of a realistic budget is greater when the budget is developed from top management down to lower management.

Question 12 1 / 1 point

A static budget is:

Question options:

appropriate in evaluating a manager's effectiveness in controlling fixed costs.

applicable to cost budgets but not to a sales budget.

appropriate in evaluating a manager's effectiveness in controlling variable costs.

modified or adjusted for changes in activity during the year.

Question 13 1 / 1 point

The potential benefit that may be obtained by following an alternative course of action is termed a(n):

Question options:

incremental cost.

opportunity cost.

sunk cost.

avoidable cost.

Question 14 1 / 1 point

An order at a special price that is accepted will increase income if the revenue received exceeds the:

Question options:

fixed and variable costs associated with the order.

variable manufacturing, selling, and administrative costs associated with the order.

incremental costs associated with the order.

variable manufacturing costs associated with the order.

Question 15 1 / 1 point

Media Unlimited makes custom office desks. It can sell semi-finished desks for $800. Costs incurred to this point total $500. It can finish the desks at an additional cost of $200 and increase the selling price to $1,100. Media Unlimited should:

Question options:

finish the desks since it will increase profits $300 per desk.

finish the desks since it will increase profits $100 per desk.

sell the desks unfinished since finishing the desks will reduce profits.

finish the desks since it will increase profits $600 per desk.

Question 16 1 / 1 point

Given the following costs for Harper Company, classify each cost as variable, fixed, or mixed.

Total cost at

4,000 units 6,000 units

Cost A $12,300 $16,650

Cost B 17,200 25,800

Cost C 13,000 13,000

Question options:

Cost A and Cost B are variable; Cost C is fixed.

Cost A is mixed; Cost B is variable; Cost C is fixed.

Cost A and Cost B are mixed; Cost C is fixed.

Cost A is variable; Cost B is mixed; Cost C is fixed.

Question 17 1 / 1 point

Richmond Company manufactures a product that sells for $50 per unit. Richmond incurs a variable cost per unit of $35 and $2,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. Contribution margin per unit is:

Question 18 1 / 1 point

Richmond Company manufactures a product that sells for $50 per unit. Richmond incurs a variable cost per unit of $35 and $2,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. The breakeven point in dollars is:

Question 19 1 / 1 point

Richmond Company manufactures a product that sells for $50 per unit. Richmond incurs a variable cost per unit of $35 and $2,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. The margin of safety in dollars is:

Question 20 1 / 1 point

Richmond Company manufactures a product that sells for $50 per unit. Richmond incurs a variable cost per unit of $35 and $2,400,000 in total fixed costs to produce this product. They are currently selling 200,000 units. The number of units that must be sold in order to generate net income of $300,000 is:

________________________________________

Attempt Score: 19 20 - 95 %

homework

Question 1

1 / 1 point

A corporation has the following account balances: Common stock, $1 par value, $30,000; Paid-in Capital in Excess of Par, $650,000. Based on this information, the

Question options:

	number of shares issued are 30,000.
	number of shares outstanding are 680,000.
	legal capital is $680,000.
	average price per share issued is $11.25.

Question 2

1 / 1 point

Abbie's Organics Corporation began business in 2014 by issuing 50,000 shares of $3 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $12. On its December 31, 2014 balance sheet, Abbie's Organics would report

Question options:

	Common Stock of $150,000.
	Paid-In Capital of $150,000.
	Common Stock of $600,000.
	Common Stock of $400,000.

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Question 3

1 / 1 point

If Baylor Company issues 8,000 shares of $5 par value common stock for $280,000,

Question options:

	Cash will be debited for $240,000.
	Paid-In Capital in Excess of Par will be credited for $40,000.
	Paid-In Capital in Excess of Par will be credited for $240,000.
	Common Stock will be credited for $280,000.

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Question 4

1 / 1 point

If common stock is issued for an amount greater than par value, the excess should be credited to

Question options:

	Legal Capital.
	Paid-in Capital in Excess of Par.
	Retained Earnings.
	Cash.

Question 5

1 / 1 point

Under the corporate form of business organization

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	stockholders wishing to sell their corporation shares must get the approval of other stockholders.
	the corporation's life is stipulated in its charter.
	a stockholder is personally liable for the debts of the corporation.
	stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.

Question 6

1 / 1 point

Which of the following represents the largest number of common shares?

Question options:

	Outstanding shares
	Treasury shares
	Authorized shares
	Issued shares

Question 7

1 / 1 point

Jackson Company is a publicly held corporation whose $1 par value stock is actively traded at $64 per share. The company issued 3,000 shares of stock to acquire land recently advertised at $200,000. When recording this transaction, Barton Company will

Question options:

	debit Land for $200,000.
	credit Paid-In Capital in Excess of Par for $196,000.
	credit Common Stock for $192,000.
	debit Land for $192,000.

Question 8

1 / 1 point

Cherokee, Inc. paid $180,000 to buy back 20,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a

Question options:

	debit to Paid-in Capital from Treasury Stock for $180,000.
	credit to Retained Earnings for $20,000.
	debit to Retained Earnings for $60,000.
	credit to Paid-in Capital from Treasury Stock for $20,000.

Question 9

1 / 1 point

Red October Company has 2,000 shares of 6%, $100 par cumulative preferred stock outstanding at December 31, 2014. No dividends have been paid on this stock for 2013 or 2012. Dividends in arrears at December 31, 2014 total

Question options:

	$1,200.
	$24,000.
	$0.
	$12,000.

Question 10

1 / 1 point

Treasury stock is

Question options:

	a corporation's own stock which has been issued and subsequently reacquired but not retired.
	stock issued by the U.S. Treasury Department.
	stock purchased by a corporation and held as an investment in its treasury.
	corporate stock issued by the treasurer of a company.

Question 11

1 / 1 point

Treasury stock should be reported in the financial statements of a corporation as a(n)

Question options:

	liability.
	deduction from total paid-in capital and retained earnings.
	deduction from total paid-in capital.
	investment.

Question 12

1 / 1 point

Slater Roofing Company originally issued 6,000 shares of $10 par value common stock for $180,000 ($30 per share). Slater subsequently purchases 600 shares of treasury stock for $27 per share and resells the 600 shares of treasury stock for $29 per share. In the entry to record the sale of the treasury stock, there will be a

Question options:

	credit to Common Stock for $16,200.
	credit to Paid-In Capital from Treasury Stock for $1,200.
	debit to Paid-In Capital in Excess of Par of $18,000.
	credit to Treasury Stock for $6,000.

Question 13

0 / 1 point

Mountain View, Inc. has 50,000 shares of 8%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2014. There were no dividends declared in 2013. The board of directors declares and pays a $500,000 dividend in 2014. What is the amount of dividends received by the common stockholders in 2014?

Question options:

	$100,000
	$500,000
	$0
	$400,000

Question 14

1 / 1 point

If preferred stock is cumulative, the

Question options:

	common stockholders will share in the preferred dividends.
	preferred dividends not declared in a given year are called dividends in arrears.
	preferred stockholders and the common stockholders receive the same total dollar amount of dividends.
	preferred stockholders and the common stockholders receive equal dividends.

Question 15

0 / 1 point

Which one of the following is not necessary in order for a corporation to pay a cash dividend?

Question options:

	Retained earnings
	Approval of stockholders
	Adequate cash
	Declaration of dividends by the board of directors

Question 16

1 / 1 point

The date on which a cash dividend becomes a binding legal obligation is on the

Question options:

	date of record.
	payment date.
	declaration date.
	last day of the fiscal year-end.

Question 17

1 / 1 point

The effect of a stock dividend is to

Question options:

	change the composition of stockholders' equity.
	decrease total assets and total liabilities.
	decrease total assets and stockholders' equity.
	increase the book value per share of common stock.

Question 18

1 / 1 point

Which one of the following events would not require a formal journal entry on a corporation's books?

Question options:

	2% stock dividend
	2 for 1 stock split
	$1 per share cash dividend
	100% stock dividend

Question 19

1 / 1 point

Regular dividends are declared out of

Question options:

	Retained Earnings.
	Paid-in Capital in Excess of Par.
	Treasury Stock.
	Common Stock.

Question 20

1 / 1 point

Solaris, Inc. has 2,000 shares of 5%, $10 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2014. What is the annual dividend on the preferred stock?

Question options:

	$5 per share
	$.05 per share
	$1,000 in total
	$10,000 in total

Question 21

1 / 1 point

Corporations generally issue stock dividends in order to

Question options:

	increase the marketability of the stock.
	exceed stockholders' dividend expectations.
	decrease the amount of capital in the corporation.
	increase the market price per share.

Question 22

1 / 1 point

A stockholder who receives a stock dividend would

Question options:

	expect the market price per share to increase.
	own more shares of stock.
	expect the par value of the stock to change.
	expect retained earnings to increase.

Question 23

1 / 1 point

When stock dividends are distributed,

Question options:

	Retained Earnings is decreased.
	Common Stock Dividends Distributable is decreased.
	no entry is necessary if it is a large stock dividend.
	Paid-in Capital in Excess of Par is debited if it is a small stock dividend.

Question 24

1 / 1 point

Identify the effect the declaration and distribution of a stock dividend has on the par value per share.

Question options:

	No effect
	Increase or decrease
	Increase
	Decrease

Question 25

0 / 1 point

A stock split

Question options:

	will increase the total par value of the stock.
	will increase total paid-in capital.
	will have no effect on the par value per share of stock.
	may occur in the absence of retained earnings.

Question 26

1 / 1 point

On January 1, Sly Corporation had 120,000 shares of $10 par value common stock outstanding. On March 17, the company declared a 15% stock dividend to stockholders of record on March 20. Market value of the stock was $13 on March 17. The entry to record the transaction of March 17 would include a

Question options:

	debit to Common Stock Dividends Distributable for $180,000.
	credit to Cash for $234,000.
	credit to Common Stock Dividends Distributable for $180,000.
	credit to Stock Dividends for $54,000.

Question 27

1 / 1 point

Bento, Inc. had 500,000 shares of common stock outstanding before a stock split occurred, and 1,500,000 shares outstanding after the stock split. The stock split was

Question options:

	2-for-5.
	5-for-1.
	1-for-5.
	3-for-1.

Question 28

1 / 1 point

In the stockholders' equity section of the balance sheet,

Question options:

	Common Stock Dividends Distributable will be classified as part of additional paid-in capital.
	Additional Paid-in Capital appears under the subsection Paid-in Capital.
	Common Stock Dividends Distributable will appear in its own subsection of the stock- holders' equity.
	Dividends in arrears will appear as a restriction of Retained Earnings.

Question 29

1 / 1 point

During 2014 Miami Inc. had sales revenue $1,328,000, gross profit $728,000, operating expenses $398,000, cash dividends $90,000, other expenses and losses $40,000. Its corporate tax rate is 30%. What was Miami's income tax expense for the year?

Question options:

	$180,000
	$87,000
	$60,000
	$398,400

Question 30

1 / 1 point

Paiva Corporation splits its common stock 2 for 1, when the market value is $80 per share. Prior to the split, Paiva had 100,000 shares of $10 par value common stock issued and outstanding. After the split, the par value of the stock

Question options:

	is reduced to $5 per share.
	remains the same.
	is reduced to $20 per share.
	is reduced to $2 per share.

homework 2

Question 1

Corporations invest in other companies for all of the following reasons except to

Question options:

increase trading of the other companies' stock.

meet strategic goals.

house excess cash until needed.

generate earnings.

Question 2

If a short-term debt investment is sold, the Investment account is

Question options:

credited for the cost of the bonds at the sale date.

debited for the cost of the bonds at the sale date.

credited for the book value of the bonds at the sale date.

credited for the fair value of the bonds at the sale date.

Question 3

Blaine Company had these transactions pertaining to stock investments:

• Feb. 1 Purchased 2,000 shares of Horton Company (10%) for $51,000.

• June 1 Received cash dividends of $2 per share on Horton stock.

• Oct. 1 Sold 1,200 shares of Horton stock for $33,000 less brokerage fees of $600.

The entry to record the sale of the stock would include a

Question options:

debit to Cash for $32,400.

credit to Gain on Sale of Stock Investments for $1,800.

credit to Gain on Sale of Stock Investments for $1,200.

debit to Stock Investments for $30,600.

Question 4

Mize Company owns 30% interest in the stock of Lyte Corporation. During the year, Lyte pays $20,000 in dividends to Mize, and reports $300,000 in net income. Mize Company's investment in Lyte will increase Mize?s net income by

Question options:

$10,000.

$6,000.

$96,000.

$90,000.

Question 5

For accounting purposes, the method used to account for long-term investments in common stock is determined by

Question options:

the extent of an investor's influence on the operating and financial affairs of the investee.

whether the acquisition of the stock by the investor was friendly or hostile.

the amount paid for the stock by the investor.

whether the stock has paid dividends in past years.

Question 6

If an investor owns less than 20% of the common stock of another corporation as a long-term investment,

Question options:

no dividends can be expected.

the equity method of accounting for the investment should be employed.

it is presumed that the investor has significant influence on the investee.

it is presumed that the investor has relatively little influence on the investee.

Question 7

When an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor

Question options:

should apply the cost method in accounting for the investment.

has insignificant influence on the investee and that the cost method should be used to account for the investment.

will prepare consolidated financial statements.

has significant influence on the investee and that the equity method should be used to account for the investment.

Question 8

Revenue is recognized when cash dividends are received under

Question options:

the cost method.

the