Question
1.Which of the following items is regarded as a cash flow from operating activities? Cash dividends paid Proceeds from sale of equipment which resulted to
1.Which of the following items is regarded as a cash flow from operating activities?
Cash dividends paid
Proceeds from sale of equipment which resulted to a gain
Proceeds from sale of equipment which resulted to a loss
Interest paid on long-term debt
2.On March 1, 2019, Company B issued $1,000,000, 10 years, 12% bonds at 103 excluding accrued interest. The bonds are dated January 1, 2019 and will mature on January 1, 2029. The interest is payable semi-annually on January 1 and July 1 of each year. Company B paid transaction costs amounting to $50,000. How much would be the net cash receipts of Company B as a result of the bond issuance?
$1,000,000
$1,030,000
$980,000
$1,050,000
3.Company H acquired an equipment on June 1, 2020 amounting to $35,000 with an estimated useful life of 5 years. What would be the reported carrying value of the equipment on December 31, 2021 if the residual value at the end of 5 years is $5,000?
$25,500
$32,000
$29,000
$26,000
4.Company C produced 10,000 units of Product C-123 for the month of October 200A. The prime cost for the month is $50,000, the direct labor is $15,000, and the manufacturing overhead cost is $10,000. Company C sold 8,000 units in October for $10 per unit. Also, there were no ending inventories for the month of September 200A. How much is the total cost of goods sold for the month of October 200A?
$80,000
$60,000
$52,000
$48,000
5.Company R uses a process costing system. The weighted average method is used in the computation of equivalent units of production. On June 1, 2020, the work-in process inventory consists of 10,000 units which were 50% completed as to conversion cost. Units transferred-in during the month of June were 35,000. The ending work-in process of 8,000 units was 25% completed as to conversion cost. What is the EUP for conversion cost for the month of June?
39,000 units
34,000 units
37,000 units
35,000 units
6.Mr. D recently manufactured a product that will be introduced to the market next year. The unit cost is $210. Mr. D wishes to achieve a margin of 25% based on sales. How much would Mr. D sell the product for?
$262.50
$280.00
$367.50
$250.00
7.Company S purchased 1,000 units raw materials amounting to $5,000 and used $4,500 worth for the production during the current month. The standard price for these raw materials is $5.2 per unit. How much is the materials price variance for the current month if Company S analyzes the variance at the point of purchase?
$200 favorable
$200 unfavorable
$700 favorable
$700 unfavorable
8.The sole proprietorship business of Individual M purchased a machinery amounting to $30,000. The machinery is expected to be useful for a period of 4 years and have a residual value of $5,000. Individual M uses the double-declining method in depreciating their fixed assets. How much would be the depreciation expense for year 3?
$3,750.00
$2,500.00
$7,500.00
$1,250.00
9.T Corporation is authorized to issue 500,000 common stock at $10 par value. As of December 31, 2019 the corporation has 350,000 common stock issued and outstanding. On February 14, 2020, the market price of the stock is $17. On the same date, T Corporation acquired 50,000 stocks at $15. On March 5, 2020, the company reissued 25% of the treasury stocks at $20. Which of the following will be included in the entry to record the transaction on March 5, 2020?
Debit Treasury Shares $187,500
Debit Common Stock $250,000
Credit Additional Paid-in Capital $62,500
Credit Cash $250,000
10.The amortization of premium on bonds payable will _____________ the net income.
increase
decrease
not affect
offset
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