ACC 557 Comprehensive Final Exam: Financial Accounting and Reporting
Comprehensive final exam covering financial accounting principles and reporting.
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Comprehensive Final Exam for ACC 557: Financial Accounting and Reporting
ACC 557/ACC557 Final Exam Part 1 & 2
PART 1
1. Ramos Corporation sold 400 shares of treasury stock for $45 per share. The
cost for the shares was $35. The entry to record the sale will include a
Answer
credit to Gain on Sale of Treasury Stock for $14,000.
credit to Paid-in Capital from Treasury Stock for $4,000.
debit to Paid-in Capital in Excess of Par for $4,000.
credit to Treasury Stock for $18,000.
2. Each of the following decreases retained earnings except
Answer
cash dividend.
liquidating dividend.
stock dividend.
All of these decrease retained earnings.
3. Paid-In Capital in Excess of Stated Value
Answer
is credited when no-par stock does not have a stated value.
is reported as part of paid-in capital on the balance sheet.
represents the amount of legal capital.
normally has a debit balance.
ACC 557/ACC557 Final Exam Part 1 & 2
PART 1
1. Ramos Corporation sold 400 shares of treasury stock for $45 per share. The
cost for the shares was $35. The entry to record the sale will include a
Answer
credit to Gain on Sale of Treasury Stock for $14,000.
credit to Paid-in Capital from Treasury Stock for $4,000.
debit to Paid-in Capital in Excess of Par for $4,000.
credit to Treasury Stock for $18,000.
2. Each of the following decreases retained earnings except
Answer
cash dividend.
liquidating dividend.
stock dividend.
All of these decrease retained earnings.
3. Paid-In Capital in Excess of Stated Value
Answer
is credited when no-par stock does not have a stated value.
is reported as part of paid-in capital on the balance sheet.
represents the amount of legal capital.
normally has a debit balance.
4. A computer company has $2,800,000 in research and development costs.
Before accounting for these costs, the net income of the company is $2,000,000.
What is the amount of net income or loss after these R & D costs are accounted
for?
Answer
$800,000 loss
$2,000,000 net income
$0
Cannot be determined from the information provided.
5. A plant asset was purchased on January 1 for $100,000 with an estimated
salvage value of $20,000 at the end of its useful life. The current year's
Depreciation Expense is $10,000 calculated on the straight-line basis and the
balance of the Accumulated Depreciation account at the end of the year is
$50,000. The remaining useful life of the plant asset is
Answer
10 years.
8 years.
5 years.
3 years.
Before accounting for these costs, the net income of the company is $2,000,000.
What is the amount of net income or loss after these R & D costs are accounted
for?
Answer
$800,000 loss
$2,000,000 net income
$0
Cannot be determined from the information provided.
5. A plant asset was purchased on January 1 for $100,000 with an estimated
salvage value of $20,000 at the end of its useful life. The current year's
Depreciation Expense is $10,000 calculated on the straight-line basis and the
balance of the Accumulated Depreciation account at the end of the year is
$50,000. The remaining useful life of the plant asset is
Answer
10 years.
8 years.
5 years.
3 years.
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Document Details
University
Strayer University
Subject
Accounting