Attached is Week 8- Final Quiz. Please help me get the answersthis test.

Quiz -92398889151281 399231 2569936 1 214770 0 false Note: It is recommended that you save your response as you complete each question. Directions: This quiz tests how well you understood the concepts covered in Weeks 1 - 7. The first half of the exam features 7 questions with short answers and calculations. For these, omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines and double underlines where required. The second half of the exam consists of 20 multiple-choice questions worth 1 point each. The computer will automatically grade the multiple-choice questions, but grading will not be complete until your instructor manually grades the short-answer questions. Your instructor may grant partial credit on short- answer questions for less than complete answers. You can take the final exam only once. You can save each question after answering, and you can save the exam before submitting. Once you have submitted the exam, you will receive a score and be able to compare your answers to the correct answers. Omit all general journal entry explanations. Be sure to include correct dollar signs, commas, underlines, and double-underlines where required. Question 1 (30 points) 1 On December 31, 2015, Raleigh Corp. had the following balances (all balances are normal): Accounts Amount Preferred Stock, ($100 par value, 5% noncumulative, 50,000 shares authorized, 10,000 shares issued and outstanding) $1,000,000 Common Stock ($10 par value, 200,000 shares authorized, 100,000 shares issued and outstanding) $1,000,000 Paid-in Capital in Excess of par, Common 150,000 Retained Earnings 700,000 The following events occurred during 2015 and were not recorded: a. On January 1, Raleigh Corp. declared a 5% stock dividend on its common stock when the market value of the common stock was $15 per share. Stock dividends were distributed on January 31 to shareholders as of January 25. b. On February 15, Raleigh Corp. reacquired 1,000 shares of common stock for $20 each. c. On March 31, Raleigh Corp. reissued 250 shares of treasury stock for $25 each. d. On July 1, Raleigh Corp. reissued 500 shares of treasury stock for $16 each. e. On October 1, Raleigh Corp. declared full year dividends for preferred stock and $1.50 cash dividends for outstanding shares and paid shareholders on October 15. f. On December 15, Raleigh Corp. split common stock 2 shares for 1. g. Net Income for 2015 was $275,000. Requirements: a. Prepare journal entries for the transactions listed above. b. Prepare a Stockholders' section of a classified balance sheet as of December 31, 2015. Question 2 (6 points) 2 On January 1, 2016, XYZ Company purchased 10,000 shares of the stock of Rayco, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Rayco made $25,000 of net income in 2014, and paid dividends of $10,000. The price of Rayco's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year. Requirements: a. Prepare the January 1 and December 31 general journal entries for XYZ Company. b. How much should the XYZ Company report on the balance sheet for the investment in Rayco at the end of 2016? Question 3 (10 points) 3 The following is selected information from Reliant Company for the fiscal years ended December 31, 2016: Reliant Company had net income of $1,225,000. Depreciation was $500,000, purchases of plant assets were $1,250,000, and disposals of plant assets for $500,000 resulted in a $50,000 gain. Stock was issued in exchange for an outstanding note payable of $725,000. Accounts receivable decreased by $25,000. Accounts payable decreased by $40,000. Dividends of $300,000 were paid to shareholders. Reliant Company had interest expense of $50,000. Cash balance on January 1, 2016 was $250,000. Requirements: Prepare Reliant Company's statement of cash flows for the year ended December 31, 2016 using the indirect method. Question 4 (16 points) 4 Rayco Corporation had the following bond transactions during the fiscal year 2016: a. On January 1: issued ten $1,000 bonds at 102. The 5-year bonds is dated January 1, 2016. The contract interest rate is 6%. Straight-line amortization method is used. Interest is payable semiannual on January 1 and July 1. b. On July 1: Rayco Corporation issued $500,000 of 10%, 10-year bonds. The bonds dated January 1, 2016 were issued at 88.5, and pay interest on July 1 and January 1. Effective interest rate for these bonds is 12%. Straight-line amortization method is used. c. On October 1: issued 10-year bonds $10,000 face value bonds, for $10,853 cash. The bonds have a stated rate of 9%, but an effective rate of 6%. Straight-line amortization method is used. Interest is payable on October 1 and April 1. Requirements: Prepare all general journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2016. (Round all calculations to nearest whole dollar.) Question 5 (6 points) 5 XYZ had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct labor $1,500, direct materials $1,400, variable factory overhead $1,000, and fixed factory overhead $500. The company did not maintain any inventories, so total cost of goods sold was $4,400. Selling expenses totaled $1,600 ($600 variable and $1,000 fixed), and administrative expenses totaled $1,500 ($500 variable and $1,000 fixed). Operating income was $2,500. Round all final answers to nearest dollar or whole number. Requirements: a. What is the break-even point in sales dollars and in units if the fixed factory overhead increased by $1,700? b. What is the break-even point in sales dollars and in units if costs remain as originally projected? c. What would be the operating income if sales units increased by 25%? Question 6 (6 points) 6 XYZ manufactures tote bags. The forecasted income statement for the year before any special orders included sales of $4,000,000 (sales price is $10 per unit.) Manufacturing cost of goods sold is anticipated to be $3,200,000. Selling expenses are expected to be $300,000, and operating income is projected at $500,000. Fixed costs included in these forecasted amounts are $1,200,000 for manufacturing cost of goods sold and $100,000 for selling expenses. Rayco is offering a special order to buy 50,000 tote bags for $7.50 each. There will be no additional selling expenses, and sufficient capacity exists to manufacture the extra tote bags. Requirements: Prepare an incremental analysis schedule to demonstrate what amount operating income would increase or decrease as a result of accepting the special order. Question 7 (6 points) 7 RSW Company manufactures 10,000 units of wheel sets for use in its annual production. Costs are as follows: direct materials are $20,000; direct labor is $55,000; variable overhead is $45,000; and fixed overhead is $70,000. Rayco Company has offered to sell RSW 10,000 units of wheel sets for $18 per unit. If RSW accepts the offer, some of the facilities presently used to manufacture wheel sets could be rented to a third party at an annual rental of $15,000. Additionally, $4 per unit of the fixed overhead applied to wheel sets would be totally eliminated. Requirements: Prepare an incremental analysis schedule to demonstrate if RSW should accept Rayco's offer Section 2: Multiple Choice Questions (20 points) Question 8 (1 point) 8 Train Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 100,000 units were started, and 80% complete at month's end. Total costs were $24,000 for material and $16,000 for conversion. The cost per equivalent unit of conversion is _____________. Question 8 options: a) $0.16 b) $0.20 c) $0.36 d) $0.40 e) none of these Question 15 (1 point) 15 Assume that actual overhead consisted of $30,000 for indirect labor, $20,000 for indirect material, and $10,000 for depreciation of factory equipment. Based on the preset rates, $65,000 of overhead was applied to work in process. Which of the following statements is true? Question 15 options: a) overhead is underapplied b) this is viewed as an unfavorable situation c) there will be a $5,000 debit balance in Factory Overhead d) all of the above e) none of these Question 16 (1 point) 16 The contract interest rate for bonds ___________. Question 16 options: a) must equal the effective interest rate b) is greater than the effective interest rate when bonds are issued at a premium c) has no relation to the cash flow associated with a particular bond d) will fluctuate over the life of a bond e) none of these Question 20 (1 point) 20 In an effort to concentrate its resources in more profitable areas, Train Corporation recently sold its family cookbook segment but retained its restaurant segment. The disposal constitutes ____________. Question 20 options: a) an extraordinary item b) a discontinued operation, which should be treated as a prior period adjustment c) a discontinued operation, which should be disclosed net-of-tax effects d) a portion of income from continuing operations e) an item which does not require disclosure Question 25 (1 point) 25 Which costing method seems ideally suited to the production of homogenous products in continuous throughput? Question 25 options: a) activity-based costing b) job order costing c) process costing d) absorption costing e) none of these