Acct 220
Does Not Appear on the Statement of Cash Flows
. The company accrued salaries of $3,000.
a. An owners equity account, reported on balance sheet, and increased by a credit
Common stock is
True
Credits increase retained earnings and common stock.
True
Discount on Bond Payable is a contra liability account.
False
EPS can be found on the Balance Sheet.
Social Security and Medicare.
FICA includes:
Debit to Interest Expense of $500 and a credit to Interest Payable of $500.
On August 1, 2018, the Jackson Co. borrowed $10,000 from First Southern Bank and signed a one year note with an interest rate of 12%. All payments for principal and interest will be paid at the end of 1 year on July 31, 2019. The adjusting journal entry on December 31, 2018, prepared by the Jackson Co. to accrue interest, would include a:
Debit to Cash of $10,000 and a credit to Note Payable of $10,000.
On August 1, 2018, the Jackson Co. borrowed $10,000 from First Southern Bank and signed a one year note with an interest rate of 12%. All payments for principal and interest will be paid at the end of 1 year on July 31, 2019. The journal entry on August 1, 2018, prepared by the Jackson Co., would include a:
Debit to Note Payable of $10,000.
On August 1, 2018, the Jackson Co. borrowed $10,000 from First Southern Bank and signed a one year note with an interest rate of 12%. All payments for principal and interest will be paid at the end of 1 year on July 31, 2019. The journal entry on July 31, 2019, prepared by the Jackson Co., would include a:
date of record
On December 2, 2018, the Petty Co. declared a $50,000 cash dividend to be distributed on December 21, 2018. Shareholders owning the stock on December 10, 2018 are entitled to receive the dividend. December 10, 2018 would be known as the:
50,000 shares issued and 47000 shares outstanding
On January 1, 2017 the Karnes Co. was authorized to issue 100,000 shares of common stock; no par value. On March 1, 2017 the company issued 10,000 shares for $12 per share. On August 1, 2017 the company issued an additional 40,000 shares for $15 per share. On December 1, 2017, the company repurchased 3,000 shares of common stock f or $16 per share. At year-end, 2017, how many shares are issued and how many shares are outstanding?
A credit to Bond Payable of $100,000.
On January 1, 2018, the Hendrix Co. sold a $100,000, 10 year bond, at 98. The journal entry prepared on January 1, 2018 would include a:
$1,200,000
On July 1, 2018, the Southern Illinois University ticket office sold $2,000,000 worth of season basketball tickets. Ten home games will be played: 4 games will occur in 2018 and 6 games will occur in 2019. At year-end, 2018, the balance in Unearned Ticket Revenue is
date of declaration
On May 2, 2017, the Matisse Company declared $50,000 in cash dividends to be distributed on May 30th 2017. Shareholders owning the stock on May 10, 2015 are entitled to receive the dividends. May 2, 2017 would be known as the:
not change total stockholders' equity.
Overall, a distribution of stock dividend will:
An owners equity account, reported on balance sheet, and increased by a credit
Paid in Capital in Excess of Par - Common Stock is
False
Preferred stock is reported on the Statement of Retained Earnings.
True
Ratio analysis can be used to compare companies of different sizes.
A liability is reported when a stock dividend is declared
Regarding a stock dividend, which of the following statements would be false?
Market Value would be $50.00 per share immediately after the 2 for 1 stock split.
The Vedder Co. declared a 2 for 1 stock split on its common stock. Immediately before the split, the Vedder Co. reported the following: Market value per share $100.00 per share Par value per share $10.00 per share Number of shares issued 50,000 shares Number of shares outstanding 50,000 shares Immediately after the 2 for 1 stock split, which of the following statements would be true?
Total debt decreased from 2016 to 2017.
The Vedder Company reported the following information: Current Assets 2017 - $9,967 Current Assets 2016 - $9,732 Total Assets 2017 - $33,699 Current Liabilities 2017 - $7,119 Current Liabilities 2016 - $7,355 Total Liabilities 2017 - $15,587 Net Income 2017 - $2,010 Net Sales Revenue 2017 - $48,815 Based on this information AND assume total liabilities in 2016 was $16,187, which of the following statements is true?
1.40 to 1
The Vedder Company reported the following information: Current Assets 2017 - $9,967 Current Assets 2016 - $9,732 Total Assets 2017 - $33,699 Current Liabilities 2017 - $7,119 Current Liabilities 2016 - $7,355 Total Liabilities 2017 - $15,587 Net Income 2017 - $2,010 Net Sales Revenue 2017 - $48,815 Based on this information, the current ratio for 2017 is:
46.3%
The Vedder Company reported the following information: Current Assets 2017 - $9,967 Current Assets 2016 - $9,732 Total Assets 2017 - $33,699 Current Liabilities 2017 - $7,119 Current Liabilities 2016 - $7,355 Total Liabilities 2017 - $15,587 Net Income 2017 - $2,010 Net Sales Revenue 2017 - $48,815 Based on this information, the debt ratio (debt to asset ratio) for 2017 is:
4.11%
The Vedder Company reported the following information: Current Assets 2017 - $9,967 Current Assets 2016 - $9,732 Total Assets 2017 - $33,699 Current Liabilities 2017 - $7,119 Current Liabilities 2016 - $7,355 Total Liabilities 2017 - $15,587 Net Income 2017 - $2,010 Net Sales Revenue 2017 - $48,815 Based on this information, the net profit margin for 2017 i
The company is profitable in 2017. (net income)
The Vedder Company reported the following information: Current Assets 2017 - $9,967 Current Assets 2016 - $9,732 Total Assets 2017 - $33,699 Current Liabilities 2017 - $7,119 Current Liabilities 2016 - $7,355 Total Liabilities 2017 - $15,587 Net Income 2017 - $2,010 Net Sales Revenue 2017 - $48,815 Based on this information, which of the following statements is true?
Liquidity
The ability for a company to pay off debt in the current year (short term) is known as:
True
The account "Paid in Capital in Excess of Par - Common Stock" would be reported on the Balance Sheet and the Statement of Stockholders' Equity.
False
The balance in retained earnings represents the amount of capital contributed by owners in exchange for stock.
Financing Activities (inflow)
The company borrowed $30,000 from the Bank of Carbondale.
Financing Activities (outflow)
The company declared and distributed a $10,000 cash dividend.
Does Not Appear on the Statement of Cash Flows
The company issued a stock dividend worth $3,000.
Financing Activities and Operating Activity (outflow)
The company made $10,000 payment on long-term note; $9,000 principal and $1,000 interest).
Operating Activity (outflow)
The company paid $12,000 for rent that will cover the next 12 months.
Operating Activity (outflow)
The company paid $5,000 for advertising.
Does Not Appear on the Statement of Cash Flows
The company prepared a tax return and billed the client $1,000.
Operating Activity (inflow)
The company prepared a tax return and received $1,000.
Does Not Appear on the Statement of Cash Flows
The company purchase office equipment and signed a note for $12,000.
Does Not Appear on the Statement of Cash Flows
The company purchased $1,000 of office supplies on account.
Financing Activities (outflow)
The company purchased $1,000 of treasury stock
Investing Activity (outflow)
The company purchased office equipment for $5,000.
Financing Activities inflow)
The company received $32,000 and issued 32,000 shares of common stock.
Operating Activity (inflow)
The company received $9,000 cash for services to be performed in the future.
Does Not Appear on the Statement of Cash Flows
The company recognized $5,000 in depreciation expense.
Financing Activity (inflow)
The company sold $500 of treasury stock.
investing activity (inflow)
The company sold an office building for $200,000; book value $56,000.
True
The current ratio measures liquidity.
False
The gross profit margin is computed by taking net income divided by total assets.
False
The higher the current ratio, the less liquid the company.
True
The lower the debt ratio (14% compared to 18%), the more solvent the company.
false
The only difference between the Direct Method and the Indirect Method is the way the Financing Activities section is prepared.
True
The receipt of a cash dividends would be reported in the Operating Activities section of the Statement of Cash Flows.
true
Treasury stock is shown as a reduction to total stockholders' equity and is reported on the Statement of Stockholders' Equity.
True
Treasury stock never results in a gain or loss.
as a cash inflow in the Financing Activities section.
Under the direct method, cash received from issuing $10,000 in common stock would be reported:
None of the above. The transaction would not be reported on the Statement of Cash Flows at this time.
Under the direct method, when a company declares a distributes a $10,000 stock dividend, this will be reported in:
the financing activities section of the statement of cash flows.
Under the direct method, when a company declares and distributes a $10,000 cash dividend, this will be reported in:
the financing activities section of the statement of cash flows.
Under the direct method, when a company purchases $500 of treasury stock, this will be reported in:
Received $10,000 cash for prepaid rent.
Which item is not included in the investing activities section of the Statement of Cash Flows?
A corporation and a partnership.
Which of the following can have 2 owners
Distributed a $10,000 stock dividend.
Which of the following is not included in the financing activities section of the Statement of Cash Flows?
Cash.
Which of the following is not reported on the Statement of Stockholders' Equity?
Owners of a corporation are personally liable for debts of the business.
Which of the following statements is false?
Retained Earnings decreases contributed capital.
Which of the following statements is false?
A gain or loss is reported when treasury stock is purchased or sold.
Which of the following would NOT BE CORRECT regarding treasury stock?
Current Ratio
Which ratio measures liquidity?
Debt Ratio
Which ratio measures solvency?
$23,000
the Matisse Co. reported the following information: Net cash inflow from financing activities $20,000 Net cash outflow from operating activities $7,000 Net cash outflow from investing activities $4,000 Ending cash balance on 12/31/17 $32,000 What is the beginning cash balance on 1/1/17?
$10,000
the Picasso Co. sold 1,000 shares of $1 par value common stock for $10 a share. As a result, total contributed capital would increase by:
10%
A company's comparative balance sheet show total assets of $880,000 and $800,000 for the current and prior years, respectively. The percentage change to be reported in the horizontal analysis is an increase of:
False
A discount bond is issued above face value.
True
A liability is recorded on the date dividends are declared.
True
Bond Payable would be classified as a liability account and reported on the balance sheet.
True
If cash dividends are distributed on a date after dividends have been declared, then overall total liabilities will decrease and total assets will decrease.
True
If the debt-to-assets ratio is 70%, then 30% of the company's financing has been provided by stockholders' equity.
True
In the year of maturity, a 3 year note payable would be reclassified from a non current liability to a current liability.
$19,000
The Jackson Co. reported the following information for the year: Beginning Retained Earnings $110,000 Common Stock ($10 par value) $80,000 Paid-in-Capital in Excess of Par $40,000 Total Expenses for the Year $9,000 Total Revenues for the Year $28,000 Treasury Stock $30,000 Cash Dividends Declared $3,000 Stock Dividends Distributed $1,000 Question: Net Income for the year is:
$215,000.
The Jackson Co. reported the following information for the year: Beginning Retained Earnings $110,000 Common Stock ($10 par value) $80,000 Paid-in-Capital in Excess of Par $40,000 Total Expenses for the Year $9,000 Total Revenues for the Year $28,000 Treasury Stock $30,000 Cash Dividends Declared $3,000 Stock Dividends Distributed $1,000 Question: What is total stockholders' equity at the end of the year?
100,000
The Matisse Co. issued 10,000 shares of $1 par value common stock for $10 per share. How much did contributed capital increase?
14 million.
The Matisse Co. was authorized to issue 20 million shares of common stock. In the first year of operations, the Matisse Co. issued 18 million shares of common stock. In the second year, no additional shares were issued but the Matisse Co. repurchased 4 million shares of common stock. At the end of year 2, how many shares of common stock are outstanding?
par value would be $5 per share
The Matisse Company declared a 2 for 1 stock split. Immediately before the stock split the common stock had a par value of $10, a market value of $30 per share and there were 100,000 shares of common stock issued and outstanding. Immediately after the stock split, which of the following statements would be correct?
Debit to "Cash" of $10,000.
The Picasso Co. sold 1,000 shares of $1 par value common stock for $10 a share. The journal entry, prepared by the Picasso Co., would include a:
