ACC 291: Final Exam Study Guide - Key Concepts and Solutions - Solved Assignments | Accounting

Preview (3 of 7 Pages)

100%

Purchase to unlock

Loading page image...

ACC 291: Final Exam Study Guide-Key Concepts and SolutionsACC 291 Final ExamNew1.An aging of a company’s accounts receivable indicates that $4,500 are estimated to beuncollectible. If Allowance for Doubtful Accounts has a $1,200 creditbalance, theadjustment to record bad debts for the period will require aa.debit to Bad Debt Expense for $3,300.b.credit to Allowance for Doubtful Accounts for $4,500.c.debit to Bad Debt Expense for $4,500.d.debit to Allowance for Doubtful Accounts for $3,300.2.The financial statements of the Melton Manufacturing Company reports net sales of$300,000 and accounts receivable of $50,000 and $30,000 at the beginning of the year andend of year, respectively. What is the average collection period for accounts receivable indays?a.36.5b.60.8c.96.1d.48.73.Stine Company purchased machinery with a list price of $64,000. They were given a 10%discount by the manufacturer. They paid $400 for shipping and sales tax of $3,000. Stineestimates that the machinery will have a useful life of 10 years and a residual value of$20,000. If Stine uses straight-line depreciation, annualdepreciation will bea.$4,100.b.$4,072.c.$6,100.d.$3,760.4.On January 1, a machine with a useful life of five years and a residual value of $40,000 waspurchased for $120,000. What is the depreciation expense for year 2under the double-declining-balance method of depreciation?a.$28,800.b.23,040.c.48,000.d.38,400.5.As a recent graduate of State University you’re aware that IFRS requires componentdepreciation for plant assets. A friend has asked you to succinctly explain what componentdepreciation means. Which of the following correctly describes component depreciation?a.The method used to prorate annual depreciation on a time basis.b.The method of depreciation recommended for an asset that is expected to be significantlymore productive in the first half of its useful life.c.The method used to ensure that the depreciation rate remains constant from year to year.d.The method that requires that significant parts of a plant asset with different useful lives bedepreciated separately.6.Given the following account balances at year end, compute the total intangible assets on thebalance sheet of JanssenEnterprises.

Loading page image...

Cash $1,500,000Accounts Receivable 4,000,000Trademarks 1,000,000Goodwill 2,500,000Research & Development Costs 2,000,000a.$3,500,000.b.$5,500,000.c.$7,500,000.d.$9,500,000.7.Bonds with a face value of $300,000 and a quoted price of 97¼ have a selling price ofa.$291,006.b.$291,750.c.$291,075.d.$292,500300,000×0.9725= 291,7508.Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued on January 1,2013. The bonds had a face value of $400,000, pay interest annually on December 31st, andhave a call price of 102. Sparks uses the straight-line method of amortization. What is thecarrying value of the bonds on January 1, 2015?a.$418,400b.$400,000c.$381,600d.$420,7009.S. Lawyer performed legal services for E. Corp. Due to a cash shortage, an agreement wasreached whereby E. Corp. would pay S. Lawyer a legal fee of approximately $15,000 byissuing 8,000 shares of its common stock (par $1). The stock trades on a daily basis and themarket price of the stock on the day the debt was settled is $1.80 per share. Given thisinformation, the best journal entry for E. Corp. to record for this transaction isa.Legal Expense18,000Common Stock18,000b.Legal Expense20,000Common Stock20,000c.Legal Expense20,000Common Stock10,000Paid-in Capital in Excess of Par-Common10,000d.Legal Expense18,000Common Stock10,000Paid-in Capital in Excess of Par-Common8,00010.Logan Corporation issues 50,000 shares of $50 par value preferred stock for cash at $60 pershare. The entry to record the transaction will consist of a debit to Cash for $3,000,000 and acredit or credits toa.Preferred Stock for $2,500,000 and Paid-in Capital in Excess of ParValue—Preferred Stockfor $500,000.b.Preferred Stock for $2,500,000 and Retained Earnings for $500,000.c.Preferred Stock for $3,000,000.d.Paid-in Capital from Preferred Stock for $3,000,000.

Preview Mode

This document has 7 pages. Sign in to access the full document!

Report

ACC 291: Final Exam Study Guide - Key Concepts and Solutions

Study Now!

Document Details

Related Documents

ACC 291 Final Exam Study Guide

ACC 291 Principles of Accounting II � University of Phoenix

ACC/291 Unethical Behavior Article Analysis University of Phoenix

Accounting 291 Accounting for Stockholders' Equity, Investments, and Treasury Transactions

ACC/291 Reflection on Week 2: Learning Team C's Progress and Understanding of Accounting Concepts University of Phoenix

Accounting 291 Financial Statement Analysis and Cash Flow Preparation for Taguchi Company and Conard Corporation

Accounting

Master Managerial Accounting Techniques

Controlling and Reporting of Real Assets

Sarbanes Oxley Act, GAAP and IFRS

Company

Explore

Study Tools