Question
A company had 100,000 shares outstanding on 1/1. 10,000 new shares were issued on 4/1, and 5,000 shares of treasury stock were purchased by the
A company had 100,000 shares outstanding on 1/1. 10,000 new shares were issued on 4/1, and 5,000 shares of treasury stock were purchased by the company from the stockholders on 7/1. What is the weighted average number of shares to be used for the year-end earnings per share calculation?
a. 110,000 | ||
b. 102,500 | ||
c. 107,500 | ||
d. 105,000 |
A truck was purchased for $25,000. It had a five-year life and a $4,000 residual value. Under the double-declining-balance method, what is depreciation expense in year two?
a. $6,000 | ||
b. $5,040 | ||
c. $8,000 | ||
d. $8,400 |
The following Income Statement and account balance changes apply to this question:
Income Statement for the year:
Sales $1,400,000
Cost of Goods Sold 810,000
Gross Profit $590,000
Operating Expenses 360,000
Net Income before Taxes $230,000
Taxes 34,000
Net Income $196,000
Account Balance Changes during the year:
Accounts Payable increase $6,000
Prepaid expenses decrease $4,500
Taxes Payable increase $8,200
Accounts Receivable decrease $24,000
Additions to Accumulated Depreciation $76,000
Inventory increase $12,000
Accrued liabilities (e.g., Wages Payable) decrease $5,000
What was the amount of cash payments made during the year for inventory purchases, using the direct method?
a. $822,000. | ||
b. $804,000 | ||
c. $828,000. | ||
d. $816,000. |
Which of the following is not correct according to the accounting rules for when to record revenues and expenses?
a. Recording revenue upon performance of a service that the customer paid for in advance | ||
b. Recording revenue upon receipt of payment for services performed in a prior accounting period | ||
c. Adjusting prepaid expenses at the end of the month for the portion that has expired during the month | ||
d. Recording Interest Expense at the end of the month for the month's accrued interest on corporate debt |
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