1) On February 15, Jewel Company buys 7,300 shares of Marcelo Corp. common stock at $28.56 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.18 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.33 per share less a brokerage fee of $250. The journal entry to record the dividend on April 15 is:

A) Debit Cash $8,614; credit Dividend Revenue $8,614.

B) Debit Cash $8,614; credit Interest Revenue $8,614.

C) Debit Cash $8,614; credit Gain on Sale of Investments $8,614.

D) Debit Cash $7,865; credit Dividend Revenue $7,865.

E) Debit Cash $7,865; credit Interest Revenue $7,865.

2) On February 15, Jewel Company buys 7,800 shares of Marcelo Corp. common at $28.61 per share plus a brokerage fee of $435. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.23 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.38 per share less a brokerage fee of $290. The fair value of the remaining 3,900 shares is $29.58 per share. The amount that Jewel Company should report in the asset section of its year-end December 31 balance sheet for its investment in Marcelo Corp. is:

A) $223,593.

B) $3,566.

C) $115,362.

D) $2,496.

E) $6,681.

3) Six months ago, a company purchased an investment in stock for $69,000. The investment is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. The current fair value of the stock is $72,900. The company should record a:

A) Credit to Investment Revenue for $3,900.

B) Debit to Investment Revenue for $3,900.

C) Debit to Unrealized Loss-Equity for $3,900.

D) No entry is required.

E) Credit to Unrealized Gain-Equity for $3,900.

4) Claymore Corp. has the following information about its standards and production activity for September. The volume variance is:

Actual total factory overhead incurred	$	23,880
Standard factory overhead:
Variable overhead	$	5.80		per unit produced
Fixed overhead
($6,720 / 4,200 estimated units to be produced)	$	1.60		per unit
Actual units produced		2,700		units

A) $2,400U.

B) $3,900U.

C) $1,500F.

D) $1,500U.

E) $2,400F.

5) Use the following information to calculate cash paid for income taxes:

Income Tax Expense	$	64,000
Income Tax Payable, January 1		23,000
Income Tax Payable, December 31		14,000

A) $73,000.

B) $87,000.

C) $78,000.

D) $55,000.

E) $64,000.

6) On February 15, Jewel Company buys 6,100 shares of Marcelo Corp. common at $28.72 per share plus a brokerage fee of $490. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.24 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.49 per share less a brokerage fee of $345. The fair value of the remaining shares is $29.69 per share. The amount that Jewel Company should report in the equity section of its year-end December 31 balance sheet for its investment in Marcelo Corp. is (Round your intermediate dollar values to the nearest dollar amount):

A) Unrealized Gain Equity; $2,714.

B) Realized Gain Equity; $7,564.

C) Unrealized Gain Equity; $5,427.

D) Unrealized Loss Equity; $1,758.

E) Unrealized Gain Equity; $9,322.

7) On February 15, Jewel Company buys 6,900 shares of Marcelo Corp. common stock at $28.64 per share plus a brokerage fee of $450. The stock is classified as available-for-sale securities. This is the companys first and only investment in available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.16 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corp. stock on November 17 of the current year for $29.41 per share less a brokerage fee of $305. The fair value of the remaining shares is $29.61 per share. The impact on Jewels net income as a result of its investment in Marcelo Corp. was a(n) (Round your intermediate dollar values to the nearest dollar amount):

A) Decrease to income of $2,127.

B) Increase to income of $10,131.

C) Increase to income of $3,122.

D) Decrease to income of $8,004.

E) Increase to income of $5,565.