1.The following data is available for Jones Corporation at December 31, 2012:
Common stock, par $10 (authorized 40,000 shares) $300,000
Treasury Stock (at cost $15 per share) 1500
Based on the data, how many shares of common stock are outstanding?
a. 30,000
b. 40,000
c. 39,900
d. 29,900
2. The following data is available for Jones Corporation at December 31, 2012:
Common stock, par $10 (authorized 40,000 shares) $300,000
Treasury Stock (at cost $15 per share) $1500
Based on the data, how many shares of common stock have been issued?
a. 40,000
b. 30,000
c. 39,900
d. 29,900
3. Foster Company issued 500 shares of no-par common stock for $10,500. Which of the
following journal entries would be made if the stock has a stated value of $5 per share?
a. Cash 10,500
Common Stock 10,500
b. Cash 10,500
Common Stock 2,500
Paid-in Capital in Excess of Par 8,000
c. Cash 10,500
Common Stock 2,500
Paid-in Capital in Excess of Stated Value 8,000
d. Common Stock 10,500
Cash 10,500
4. Jarrett Company issued 600 shares of no-par common stock for $7,500. Which of the
following journal entries would be made if the stock has no stated value?
a. Cash 7,500
Common Stock 7,500
b. Cash 7,500
Common Stock 600
Paid-in Capital in Excess of Par 6,900
c. Cash 7,500
Common Stock 600
Paid-in Capital in Excess of Stated Value 6,900 Page | 2
d. Common Stock 7,500
Cash 7,500
5. Outstanding stock of the Core Corporation included 20,000 shares of $5 par common
stock and 10,000 shares of 5%, $10 par noncumulative preferred stock. In 2011, Core
declared and paid dividends of $4,000. In 2012, Core declared and paid dividends of
$12,000. How much of the 2012 dividend was distributed to preferred shareholders?
a. $7,000
b. $4,000
c. $5,000
d. None of the above
6. On January 1, Edison Corporation had 1,000,000 shares of $10 par value common stock
outstanding. On March 31, the company declared a 20% stock dividend. Market value of
the stock was $15/share. As a result of this event,
a. Edisons Paid-in Capital in Excess of Par account increased $1,000,000.
b. Edisons total stockholders equity was unaffected.
c. Edisons Stock Dividends account increased $3,000,000.
d All of the above.
7.Assume the following cost of goods sold data for a company:
2013 $1,680,000
2012 1,400,000
2011 1,200,000
If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011
to 2013?
a. 140%
b. 40%
c. 23%
d. 17%
8.Dolan Manufacturing Company's accounting records reflect the following inventories:
Dec. 31, 2012 Dec. 31, 2011
Raw materials inventory $620,000 $520,000
Work in process inventory 600,000 320,000
Finished goods inventory 380,000 300,000
During 2012, $800,000 of raw materials were purchased, direct labor costs amounted to
$1,000,000, and manufacturing overhead incurred was $960,000.
If Dolan Manufacturing Company's cost of goods manufactured for 2012 amounted to
$2,380,000, its cost of goods sold for the year is
a. $2,600,000.
b. $2,100,000.
c. $2,300,000.
d. $2,460,000.
9. Benson Manufacturing Inc.'s accounting records reflect the following inventories:
Dec. 31, 2011 Dec. 31, 2012
Raw materials inventory $120,000 $ 96,000
Work in process inventory 156,000 174,000
Finished goods inventory 150,000 138,000
During 2012, Benson purchased $1,440,000 of raw materials, incurred direct labor costs
of $300,000, and incurred manufacturing overhead totaling $192,000.
How much are raw materials transferred to production during 2012 for Benson
Manufacturing?
a. $1,788,000
b. $1,464,000
c. $1,440,000
d. $1,416,000
10. Benson Manufacturing Inc.'s accounting records reflect the following inventories:
Dec. 31, 2011 Dec. 31, 2012
Raw materials inventory $120,000 $ 96,000
Work in process inventory 156,000 174,000
Finished goods inventory 150,000 138,000
During 2012, Benson purchased $1,440,000 of raw materials, incurred direct labor costs
of $300,000, and incurred manufacturing overhead totaling $192,000.
How much is total manufacturing costs incurred during 2012 for Benson?
a. $1,914,000
b. $1,956,000
c. $1,932,000
d. $1,938,000
11. As of December 31, 2012, Nilsen Industries had $2,000 of raw materials inventory. At
the beginning of 2012, there was $1,600 of materials on hand. During the year, the
company purchased $324,000 of materials; however it paid for only $314,000. How
much inventory was requisitioned for use on jobs during 2012?
a. $324,400
b. $314,400
c. $313,600
d. $323,600
