I am trying to study for exam 3, and i need to know how to solve the questions i attached. I would like to see steps how you solve for each questions.

Your explanation to each questions will be very helpful to me.

Thanks !

NAME: Do NOT open your exam until you are told to do so! BEFORE STARTING: Without opening your exam, pull out your scantron and fill it in as follows (bubble carefully & avoid losing class administration points): your last name & first initial (use your legal name per the University system). your net id (this is the same as your Enterprise ID & is the first part of your University email address) your UIN number Your section number (See 3 digit \"scantron entry\" number bolded below & bubble in as your section). Make sure the exam version on your scantron is bubbled as Version A. DURING THE EXAM There should be no communication between students in any manner during the entire exam period. This means no talking, whispering or signaling to each other and no electronic communication. Bubble your scantron as you are working. Time will not be allowed for bubbling after the exam has ended. Use the table attached to your assigned seat. You cannot lean over and use the adjacent table! It is your job to keep your scantron/exam booklet hidden from wandering eyes . Keep your test FLAT on your desk at all times! If you are allowing your exam/scantron to be visible to other students it will be assumed that YOU are cheating. All books and papers & cell phones must be securely placed in a back-pack or other case and placed completely under the student's seat. Please turn off your cell phone before putting it away! Baseball hats, headphones and/or sunglasses may not be worn during an exam. All extra wearing apparel and parcels must be on the floor, under the student's desk or seat during quizzes, tests or exams. By enrolling in this course students agree to abide by the rules & regulations stated in Article 4 of the Student Code. If academic dishonesty is evident your exam will be confiscated and turned over to the Accountancy Department Head for resolution. In this event, I will recommend a penalty of an \"F\" for the course. In especially serious cases, the Department Head may impose harsher penalties such as expulsion from the University. Please keep in mind that expulsion for cheating becomes part of your permanent academic record which will follow you for the rest of your academic career. AFTER THE EXAM 1. Double check that your test version is properly bubbled on your scantron. You can see your test version on the last page of the exam or above in the last bullet under the \"before starting\" section above. 2. When turning in your exam, bring your exam booklet (so we can see the color), photo ID and scantron. 3. Turn in your scantron & show a photo i.d. if asked to do so. Listed below are the 2015 comparative financial statements for Vintage Enterprises. You will utilize the below financial statements to answer 5 separate exam questions. The 5 questions are scattered throughout the exam but the question facts will refer you back to the Vintage Enterprise facts. When utilizing the below information please consider: All account balances shown below are normal. Vintage makes all sales on credit and purchases 100% of its inventory on account from Lyle Company. This vendor relationship has proven fruitful as during 2015, Vintage saved $12,000 as a result of the generous purchase discount offered by Lyle. Vintage uses the allowance method when reporting bad debt and calculates the bad debt estimate as a % of sales. During 2015 Vintage wrote off $6,000 of Accounts Receivable as uncollectible. 1. Please utilize the above information provided for Vintage Enterprises and calculate the dollar amount of cash collections in 2015 from customers as payment on account. A. B. C. D. E. $796,000 $802,000 $790,000 $788,300 None of the above 2. The proper journal entry to close overapplied manufacturing overhead to Cost of Goods Sold would be: A. B. C. D. E. None of the above 3. Consider the characteristics of the Income Summary account. Which account(s) listed below have similar characteristics? (i) Manufacturing Overhead (ii) Retained Earnings (iii) Premium on Bonds Payable (iv) Dividends A. B. C. D. E. 4. (ii) and (iv) (iv) (ii) and (iii) (i) and (iv) (ii) Stone Company issued a $1,000,000, 5-year bond on January 1, 2016. The bond was dated January 1, 2016 with an 8% coupon rate, paying interest annually on December 31. At the time of issuance, the market rate of interest was 6%. Stone uses the effective-interest method to account for its bonds. PV table factors are as follows: n= # of periods Table 2 Table 4 PV of $1 PV of an ordinary annuity n, i 5, 6% 0.74726 4.21236 n, i 5, 8% 0.68058 3.99271 Which entry will Stone make on January 1, 2016 in order to record the issuance of the bond? (Answer choices may have been rounded to the nearest $1). A. Cash Bond Payable B. Cash Discount on Bond Payable Bond Payable C. Cash Premium on Bond Payable Bond Payable D. Cash Discount on Bond Payable Bond Payable E. Cash Premium on Bond Payable Bond Payable $1,000,000 $1,000,000 $920,142 $79,858 $1,000,000 $1,000,000 $84,249 $1,084,249 $1,000,000 $79,858 $920,142 $1,084,249 $84,249 $1,000,000 5. Based on the following 12/31st account balances, what would be the beginning balance in the Retained Earnings Account, assuming all accounts have a normal balance? A. B. C. D. E. 6. $15,847 $13,284 $13,847 $14,410 None of the above. Consider the following tax brackets applicable to taxpayer J. Calculate the total tax liability assuming J has a taxable income of $216,000. A. B. C. D. E. 7. $75,600 $50,100 $60,480 $47,580 None of the above On January 1, 2017, when the market rate of interest was 5%, Smythe Company issued $100,000 of its ten-year, 6% bonds payable at a price of $107,794. The bonds pay interest semi-annually on each June 30 and each December 31. Smythe uses the straight line method for premium/discount amortization*. Select the answer below that shows (i) the amount of interest expense reported by Smythe on its Income Statement for the twelve months ended 12/31/2017 and (ii) the carrying value of the bond on Smythe's 12/31/2017 Balance Sheet. * Round all calculations to the nearest $1 prior to placing the number into the amortization table. A. B. C. D. E. (i) $2,695 and (ii) $107,489 (i) $2,610 and (ii) $107,404 (i) $5,382 and (ii) $107,176 (i) $5,220 and (ii) $107,014 None of the above 8. Please utilize the information provided for Vintage Enterprises on pg. 1 of your exam and calculate the cash paid during 2015 to vendor, Lyle Company, for purchases of inventory on account. A. B. C. D. E. 9. On January 1, 2017, when the market rate of interest was 6%, Smythe Company issued $100,000 of its ten-year, 5% bonds payable at a price of $92,562. The bonds pay interest semi-annually on each June 30 and each December 31. Smythe uses the effective interest method for premium/discount amortization. What total amount will Smythe report as Interest Expense over the life of the bond? A. B. C. D. E. 10. $623,000 $635,000 $615,000 $603,000 None of the above $42,562 92,562 $57,438 $107,438 None of the above Please utilize the information provided for Vintage Enterprises on pg. 1 of your exam and calculate the cash paid during 2015 for insurance. A. B. C. D. E. $5,700 $6,200 $5,200 $6,700 None of the above 11. Mansfield Corporation estimates its manufacturing overhead costs to be $160,000 and its direct labor costs to be $320,000 for 2007. The actual manufacturing labor costs were $80,000 for job 1, $120,000 for job 2 and $160,000 for job 3 during 2007. Manufacturing overhead is applied to jobs on the basis of direct labor costs using a predetermined overhead rate. The actual manufacturing overhead cost for the year was $174,000. The amount of overhead assigned to Job 3 during 2007 was: A. B. C. D. E. 12. If a bond is issued at 98, the coupon rate was A. B. C. D. 13. higher than the market rate of interest. equal to the market rate of interest. not related to the market rate of interest. lower than the market rate of interest. Please utilize the information provided for Vintage Enterprises on pg. 1 of your exam and calculate the cash paid during 2015 for salaries. A. B. C. D. E. 14. $ 80,000 $ 58,000 $ 160,000 $ 120,000 None of the above $80,000 $78,000 $82,000 $76,000 None of the above How would the book value of bonds payable be affected by (i) the amortization of a Discount on Bonds Payable and (ii) by the amortization of a Premium on Bonds Payable A. B. C. D. E. (i) No Effect, (ii) No Effect (i) No Effect, (ii) Increase (i) Increase, (ii) Decrease (i) Decrease, (ii) Increase (i) Increase, (ii) No Effect As you may remember from HE2, you are an accounting intern who is working for Steven Lawless, a trial lawyer who opened his own law practice on January 1, 2014. Steven has now asked you to assist with closing the books as of 12/31/2014 and has provided you with the 12/31/2014 adjusted account balances. Please note that these are the HE2 adjusted account balances except for the addition of a dividend payment (A/C 310). Please utilize this information for questions 15 & 16. Adjusted Account Balances- 12/31/2014 * * All account balances listed above are normal (a "normal account balance" means the account balance is on the expected side (i.e. debit or credit) of the T account). Account numbers from 100-199 are used for Assets & Contra Assets; from 200-299 are used for Liabilities; 300-399 are used for Equity; 600- 699 are used for Revenue and 700-799 are used for Expense. 15. Consider the closing entries that will be made for Steven Lawless' legal practice and select the entry(s) below that would be included as part of the closing process: (i) Dividends 20,000 Income Summary 20,000 (ii) Retained Earnings 102,530 Income Summary 102,530 (iii) Income Summary 102,530 Retained Earnings 102,530 (iv) Income Summary 20,000 Dividends A. B. C. D. E. (ii) (ii) and (iv) (iii) and (i) (iii) None of the above 20,000 16. Consider the Adjusted Trial Balance provided for Steven Lawless. Understanding that zero account balances are not reported on the post-closing trial balance, of the 31 accounts listed on the Adjusted Trial Balance, how many will not be included on the post-closing trial balance? A. B. C. D. E. 17. 14 15 16 17 18 Select the true statement below A. B. C. D. Bonds will sell for a premium when the market rate of interest exceeds their stated rate. Premium on bonds payable is an adjunct liability account. Interest Expense is calculated as the stated interest rate times the amount of debt outstanding during the period. Amortization of discount on bonds payable results in interest expense that is less than the actual cash interest payment. E. All of the above are true. Continued on next page. 18. Lincoln Corporation manufactures cooling equipment. At the beginning of each year the company goes through an extensive budgeting process. They apply overhead to production based on machine hours. Consistent with industry standards, Lincoln pays time and a half for overtime. Lincoln's controller provides you with the following data: Actual Results: Beginning Inventory, raw material $225,000.00 Ending Inventory, raw material $120,000.00 Purchases of raw material $310,000.00 Direct Material- transferred to production ? Indirect Materials- used in production (*) $15,000.00 Beginning Inventory, work-in-process $365,000.00 Ending Inventory, work-in-process $425,000.00 Beginning Inventory, finished goods $525,000.00 Ending Inventory, finished goods $650,000.00 Total Manufacturing Overhead Incurred $344,000.00 Machine Hours 29,000.00 Direct Labor Hours (**) 20,000.00 Hourly Direct Labor Rate $25.00 Budgeted Numbers: Machine Hours 32,000.00 Direct Labor Hours 21,000.00 Hourly Direct Labor Rate $27.50 Manufacturing Overhead $352,000.00 * Assume that both direct materials and indirect materials are stored in the raw materials account. ** Lincoln's production workers submitted time cards (for the year) showing 18,000 regular hours and 2,000 overtime hours. Given the above information, what was Lincoln's cost of goods manufactured? A. B. C. D. E. $1,174,000 $1,159,000 $1,199,000 $1,249,000 None of the above 19. Continue with question #18. Please consider the 20,000 direct labor hours incurred by Lincoln in the current year. Select the entry which would be made to record these hours? A. Salary Expense Cash B. Work In Process Cash C. Manufacturing Overhead Work In Process Cash D. Manufacturing Overhead Salary Expense Cash E. None of the above 20. 525,000 525,000 525,000 25,000 500,000 525,000 75,000 450,000 525,000 Continue with question #18. By what dollar amount was Lincoln's MOH over or under applied? A. B. C. D. E. 21. 525,000 $8,000 (under applied) $25,000 (over applied) $8,000 (over applied) $25,000 (under applied) None of the above Please utilize the information provided for Vintage Enterprises on pg. 1 of your exam and calculate the cash paid during 2015 for dividends. A. B. C. D. E. $19,000 $54,000 $73,000 $35,000 None of the above 22. Leslie owns a thriving retail business and provides the following year-to-date income statement prepared using U.S. GAAP. Please consider (i) that Leslie uses the Sum-of-the -years digits (SOYD) depreciation method for financial accounting purposes and MACRS (a tax depreciation method) for tax purposes. SOYD resulted in $25,000 of total depreciation expense in the current year and MACRS provides $35,000. (ii) During the current year Leslie sold a piece of equipment for $32,000. The equipment had an original cost of $70,000 and had been depreciated for books and for tax as indicted below: What is company's taxable income after taking into account these two book/tax differences? A. B. C. D. E. $63,300 $59,300 $72,300 $36,300 None of the above ***check your scantron & make sure it is coded as VA***