Johnson Company's capital stock is currently trading for $22 per share.The following accounts appear on the balance sheet: $\begin{array} { l } \text { Common stock, } \$ 6.00 \text { par value per share, } 10,000 \text { shares issued }&\$60,000 \\ \text { Paid in capital in excess of par value }&\$200,000 \\ \end{array}$ The only transaction affecting the accounts was one issue of the company's common stock.What was the original selling price of the common stock?

A) $6.00 per share B) $20.00 per share C) $22.00 per share D) $26.00 per share A) $6.00 per share B) $20.00 per share C) $22.00 per share D) $26.00 per share

Sanders Company had the following data for the year ending December 31,2014: \[\begin{array} { l l } \text { Cash } & \$ 6,000 \\ \text { Depreciation expense } & 40,000 \\ \text { Prepaid rent } & 1,400 \\ \text { Cost of goods sold } & 69,000 \\ \text { Sales } & 200,000 \\ \text { Dividends paid } & 3,000 \\ \text { Rent expense } & 3,600 \\ \text { Wage expense } & 81,000 \end{array}\] What is the net income for the year ending December 31,2014?

A) $400 B) $3,400 C) $6,000 D) $6,400 A) $400 B) $3,400 C) $6,000 D) $6,400

For the year ending December 31,2014,Harkins Company reports net income of $35,000 and depreciation expense of $12,000.The income tax expense for the year ending December 31,2014 is $20,000.The following data is available: $\begin{array}{lll}&\text { December 31, } 2013&\text { December 31, } 2014\\ \text { Cash } & \$ 35,000 & \$ 16,000 \\ \text { Accounts Receivable } & \$ 35,000 & \$ 45,000 \\ \text { Inventories } & \$ 70,000 & \$ 100,000 \\ \text { Fixed Assets } & \$ 440,000 & \$ 581,000 \\ \text { Accumulated Depreciation } & \$ 120,000 & \$ 101,000 \\ \text { Accounts Payable } & \$ 6,000 & \$ 74,000 \\ \text { Wages Payable } & \$ 4,000 & \$ 25,000 \end{array}$ What is the net cash provided by operating activities for the year ended December 31,2014? Assume the indirect method is used.

A) $5,000 B) $26,000 C) $73,000 D) $96,000 A) $5,000 B) $26,000 C) $73,000 D) $96,000

Listed below are selected accounts for Dentice Corporation: $\begin{array}{lll}&\text { December } 31,2013&\text { December } 31,2014\\ \text { Accounts Receivable } & \$ 20,000 & \$ 40,000 \\ \text { Inventory } & \$ 70,000 & \$ 30,000 \\ \text { Accounts Payable } & \$ 20,000 & \$ 88,000 \\ \text { Wages payable } & \$ 22,000 & \$ 1,000 \end{array}$ For the year ended December 31,2014,net income was $50,000 and depreciation expense was $0.The net cash provided by operating activities for the year ending December 31,2014 was ________.Assume the indirect method is used.

A) $70,000 B) $90,000 C) $108,000 D) $117,000 A) $70,000 B) $90,000 C) $108,000 D) $117,000

Exam 16: Understanding Corporate Annual Reports: Basic Financial Statements

Johnson Company's capital stock is currently trading for $22 per share.The following accounts appear on the balance sheet: Common stock, \ 6.00 par value per share, 10,000 shares issued \6 0,000 Paid in capital in excess of par value \2 00,000 The only transaction affecting the accounts was one issue of the company's common stock.What was the original selling price of the common stock?

(Multiple Choice)

4.9/5

(70)

Question 121

A company's treasury stock is outstanding but not issued.

(True/False)

4.8/5

(77)

Question 122

Cash payments for interest expense are reported in the ________ section of the statement of cash flows.The direct method is used.

(Multiple Choice)

4.8/5

(80)

Question 123

Jerome Company reported cost of goods sold of $700,000,a decrease in inventory of $60,000,and an increase in accounts payable of $30,000.How much cash was paid to suppliers?

(Multiple Choice)

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(95)

Question 124

Research and development costs are expensed when incurred for financial statement purposes.

(True/False)

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(85)

Question 125

Treasury stock is ________.

(Multiple Choice)

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(78)

Question 126

Damon Company sold 10,000 shares of $1 par value common stock.The selling price was $9.00 per share.After the sale,what is the capital in excess of par value?

(Multiple Choice)

4.8/5

(81)

Question 127

Sanders Company had the following data for the year ending December 31,2014: Cash \ 6,000 Depreciation expense 40,000 Prepaid rent 1,400 Cost of goods sold 69,000 Sales 200,000 Dividends paid 3,000 Rent expense 3,600 Wage expense 81,000 What is the net income for the year ending December 31,2014?

(Multiple Choice)

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(67)

Question 128

Companies do not amortize indefinite-life intangible assets.What do companies do each year for these assets?

(Multiple Choice)

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(85)

Question 129

During a period of inflation,the LIFO method reports a larger cost of goods sold amount than FIFO.

(True/False)

4.8/5

(79)

Question 130

Assume you are preparing a balance sheet dated December 31,2014.Which of the following is NOT a long-term liability?

(Multiple Choice)

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(92)

Question 131

The amortization of intangible assets applies to ________.

(Multiple Choice)

4.9/5

(85)

Question 132

In periods of inflation,the ________ method of inventory valuation provides a more realistic net income.

(Multiple Choice)

4.9/5

(78)

Question 133

For the year ending December 31,2014,Harkins Company reports net income of $35,000 and depreciation expense of $12,000.The income tax expense for the year ending December 31,2014 is $20,000.The following data is available: December 31, 2013 December 31, 2014 Cash \ 35,000 \ 16,000 Accounts Receivable \ 35,000 \ 45,000 Inventories \ 70,000 \ 100,000 Fixed Assets \ 440,000 \ 581,000 Accumulated Depreciation \ 120,000 \ 101,000 Accounts Payable \ 6,000 \ 74,000 Wages Payable \ 4,000 \ 25,000 What is the net cash provided by operating activities for the year ended December 31,2014? Assume the indirect method is used.

(Multiple Choice)

4.9/5

(80)

Question 134

A payment on bonds payable will be reported in the ________ section of the statement of cash flows.

(Multiple Choice)

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Question 135

It is December 31,2014.A Note Payable is due in five annual installments beginning on December 31,2015.On the balance sheet dated December 31,2014,the Note Payable is classified as ________.

(Multiple Choice)

4.8/5

(83)

Question 136

Listed below are selected accounts for Dentice Corporation: December 31,2013 December 31,2014 Accounts Receivable \ 20,000 \ 40,000 Inventory \ 70,000 \ 30,000 Accounts Payable \ 20,000 \ 88,000 Wages payable \ 22,000 \ 1,000 For the year ended December 31,2014,net income was $50,000 and depreciation expense was $0.The net cash provided by operating activities for the year ending December 31,2014 was ________.Assume the indirect method is used.

(Multiple Choice)

4.9/5

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Question 137

Unsecured debt holders are creditors who have ________.

(Multiple Choice)

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Question 138

The ending retained earnings balance of Brothers Company is $700,000.During the current year,net income is $370,000 and dividends declared are $150,000.What is the beginning balance in retained earnings?

(Multiple Choice)

4.8/5

(85)

Question 139

FIFO provides inventory valuations that approximate the actual ________ of inventory at the balance sheet date.

(Multiple Choice)

4.9/5

(91)

Question 140

Showing 121 - 140 of 141

A company's treasury stock is outstanding but not issued.

Cash payments for interest expense are reported in the ________ section of the statement of cash flows.The direct method is used.

Jerome Company reported cost of goods sold of $700,000,a decrease in inventory of $60,000,and an increase in accounts payable of $30,000.How much cash was paid to suppliers?

Research and development costs are expensed when incurred for financial statement purposes.

Treasury stock is ________.

Damon Company sold 10,000 shares of $1 par value common stock.The selling price was $9.00 per share.After the sale,what is the capital in excess of par value?

Sanders Company had the following data for the year ending December 31,2014: Cash \ 6,000 Depreciation expense 40,000 Prepaid rent 1,400 Cost of goods sold 69,000 Sales 200,000 Dividends paid 3,000 Rent expense 3,600 Wage expense 81,000 What is the net income for the year ending December 31,2014?

Companies do not amortize indefinite-life intangible assets.What do companies do each year for these assets?

During a period of inflation,the LIFO method reports a larger cost of goods sold amount than FIFO.

Assume you are preparing a balance sheet dated December 31,2014.Which of the following is NOT a long-term liability?

The amortization of intangible assets applies to ________.

In periods of inflation,the ________ method of inventory valuation provides a more realistic net income.

A payment on bonds payable will be reported in the ________ section of the statement of cash flows.

It is December 31,2014.A Note Payable is due in five annual installments beginning on December 31,2015.On the balance sheet dated December 31,2014,the Note Payable is classified as ________.

Unsecured debt holders are creditors who have ________.

The ending retained earnings balance of Brothers Company is $700,000.During the current year,net income is $370,000 and dividends declared are $150,000.What is the beginning balance in retained earnings?

FIFO provides inventory valuations that approximate the actual ________ of inventory at the balance sheet date.

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding and Analyzing Consolidated Financial Statements

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