I have 40 questions with multiple choice answers for my Financial Accounting class. The attachment includes the questions, book information. I need help answering these questions. I need a fast turn around.

Financial Accounting: Economics for Managers (Third Edition) by Paul G. Farnham. Questions cover material on Chapters 5 thru 13. Q1 Wallah Company agreed to accept $3,000 in cash along with an $8,000, 90day, 11% note from customer Judith Taylor to settle her $11,000 pastdue account. How should Wallah record this transaction? A. B. C. D. DR Cash 3,000 CR Note Receivable 8,000 CR Accounts Receivable - J. Taylor 11,000 DR Note Receivable 8,000 CR Sales 8,000 DR Cash 3,000 DR Note Receivable 8,000 CR Sales 11,000 R Sales 11,000 CR Note Receivable 8,000 CR Cash 3,000 Q2 Leo issued 25year, 7% bonds with a par value of $400,000. Interest is paid semiannually. The market rate on the issue date was 6.5%. Leo received $429,856 in cash proceeds. Which of the following statements is true? A. B. C. D. Leo must pay $400,000 at maturity plus 50 interest payments of $14,000 each. Leo must pay $429,856 at maturity plus 50 interest payments of $14,000 each. Leo must pay $429,856 at maturity and no interest payments. Leo must pay $400,000 at maturity plus 50 interest payments of $13,000 each. Q3 On December 1, Kaif Company signed a $9,500 3month 7% note payable, with the principal plus interest due on March 1 of the following year. What amount of interest expense is accrued at December 31 on the note? Use a 360day year for interest calculation. Round your answer to the nearest dollar. A. B. C. D. $55 $665 $166 $0 Q4 A corporation issued 5,000 shares of its $10 par value common stock in exchange for land that has a market value of $91,000. The entry to record this transaction would include: A. B. C. D. A credit to Paidin Capital in Excess of Par Value, Common Stock for $41,000. A credit to Common Stock for $91,000. A credit to Land for $50,000. A debit to Land for $50,000. Q5 A company's board of directors votes to declare a cash dividend of 75 per share. The company has 12,000 shares authorized, 10,000 issued, and 9,800 shares outstanding. The total amount of the cash dividend is: A. B. C. D. $7,350 $7335 $1,650 $7,500 Page 1 of 10 Q6 A company issued 12%, 10year bonds with a par value of $750,000. The current market rate is 12%. The journal entry to record each semiannual interest payment is: A. B. C. D. DR Bond Interest Expense 45,000 CR Cash 45,000 No entry is needed, since no interest is paid until the bond is due DR Bond Interest Expense 90,000 CR Cash 90,000 DR Bond Interest Expense 750,000 CR Cash 750,000 Q7 A machine with a cost of $150,000 and accumulated depreciation of $87,000 is sold for $57,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: A. B. C. D. $57,000 Zero. This is a financing activity. Zero. This is an operating activity. $63,000 Q8 Smith Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Smith Company wrote off the $2,100 uncollectible account of its customer, P. Barney. On July 10, Smith received a check for the full amount of $2,100 from Barney. On July 10, the entry or entries Smith makes to record the recovery of the bad debt should include a: A. B. C. D. Credit to Allowance for Doubtful Accts 2,100 Debit to Bad Debts Expense $2,100 Debit to Allowance for Doubtful Accts 2,100 Debit to Cash 2,100 Q9 A company paid $115,000, plus a 9% commission and $6,000 in closing costs for a property. The property included land appraised at $90,000, land improvements appraised at $36,000, and a building appraised at $54,000. What should be the allocation of this property's costs in the company's accounting records? A. B. C. D. Land $65,675; Land Improvements, $26,270; Building, $39,405 Land $57,500; Land Improvements, $23,000; Building, $34,500 Land $23,000; Land Improvements, $34,500; Building, $57,500 Land $26,270; Land Improvements, $39,405; Building, $65,675 Q10 Employees earn vacation pay at the rate of one day per month. During September, 26 employees qualify for one vacation day each. Their average daily wage is $140 per day. What is the amount of vacation benefit expense for the month of September? A. $3,640 B. $1,680 Page 2 of 10 C. $42,000 D. $26 Q11 A company estimates that warranty expense will be 5% of sales. The company's sales for the current period is $187,000. The current period's entry to record the warranty expense includes a: A. B. C. D. Debit to Warranty Expense for $9,350 Credit to Warranty Expense for $9,350 Debit to Estimated Warranty Liability for $9,350 Credit to Inventory for $9,350 Q12 Use the following information to calculate cash paid for wages and salaries: Salaries expense$163,000 Salaries payable, January 16,600 Salaries payable, December 3110,800 A. B. C. D. $158,800 $169,600 $180,400 $167,200 Q13 Nelson Company had net income of $50,000. On January 1, the number of shares of common stock outstanding was 7,000. On April 1, the company issued an additional 1,000 shares of common stock. There were no other stock transactions. The company's earnings per share is (rounded): A. B. C. D. $6.45 $6.25 $50.00 $7.14 Q14 A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: A. B. C. D. A credit to Common Stock for $140,000. A debit to Paidin Capital in Excess of Par Value, Common Stock for $14,000. A debit to Cash for $140,000. A credit to Paidin Capital in Excess of Par Value, Common Stock for $182,000. Q15 A bondholder that owns a $6,000, 19%, 19year bond has: A. The right to receive $6,000 at maturity. B. Ownership rights. C. The right to receive dividends of $6,000 per year. Page 3 of 10 D. The right to receive $19 per year until maturity. Q16 A company had average total assets of $892,000. Its gross sales were $1,086,000 and its net sales were $1,016,000. The company's total asset turnover equals (rounded): A. B. C. D. 1.14 1.07 1.22 .88 Q17 On January 1, 2010, Jacob issues $930,000 of 9%, 11year bonds at a price of 96.5. All interest is accounted for and paid through December 31, 2015, the day before the purchase. The straight line method is used to amortize any bond discount. What is the carrying value of the bond on January 1, 2016? A. B. C. D. $915,210 $897,450 $963,390 $912,240 Q18 Stuart Inc. has an annual accounting period which ends on December 31. During the current year a depreciable asset which cost $43,000 was purchased on September 2. The asset has a $3,500 estimated salvage value. The company uses straightline depreciation and expects the asset to have a 6 year life. What is the total depreciation expense(rounded) for the current year? A. B. C. D. $2,194.44 $7,750.00 $2,583.33 $6,583.33 Q19 On December 31 of the current year, a company's unadjusted trial balance included the following: Accounts Receivable, debit balance of $97,750; Allowance for Doubtful Accounts, credit balance of $970. What amount should be debited to Bad Debts Expense, assuming 7% of outstanding accounts receivable at the end of the current year will be uncollectible?: (Round your answer to the nearest dollar amount.) A. B. C. D. $5,873 $6,842 $7,813 $970 Q20 A company had a beginning balance in retained earnings of $57,000. It had net income of $9,000 and paid out cash dividends of $5,975 in the current period. The ending balance in retained earnings equals: A. $60,025 B. $(53,975) C. $53,975 Page 4 of 10 D. $(42,025) Q21 A company's income statement showed the following: net income, $122,000; depreciation expense, $31,000; and gain on sale of plant assets, $17,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,300; merchandise inventory increased $17,500; prepaid expenses decreased $6,900; accounts payable increased $3,600. Calculate the net cash provided or used by operating activities. A. B. C. D. $138,300 $105,900. $124,200. $62,500. Q22 A corporation issued 3,000 shares of $20 par value common stock in exchange for some land with a market value of $70,000. The entry to record this exchange includes a: A. B. C. D. Credit to Paid in Capital in Excess of Par $10,000 Credit to Common Stock $10,000 Credit to Common Stock $70,000 Credit to Paid in Capital in Excess of Par $60,000 Q23 A company reported that its bonds with a par value of $46,000 and a carrying value of $53,000 are retired for $62,000 cash, resulting in a loss of $9,000. The amount to be reported under cash flows from financing activities is: A. B. C. D. $(62,000). Zero. This is an operating activity. Zero. This is an investing activity. $(53,000). Page 5 of 10 Q24 Temper Company has credit sales of $2.50 million for year 2010. Temper estimates that 1.70% of the credit sales will not be collected. On December 31, 2010, the company's Allowance for Doubtful Accounts has an unadjusted credit balance of $2,238. Temper prepares a schedule of its December 31, 2010, accounts receivable by age. Based on past experience, it estimates the percent of receivables in each age category that will become uncollectible. This information is summarized here: December 31, 2010 Accounts Receivable $636,000 264,000 51,200 26,400 5,120 Age of Accounts Receivable Not yet due 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due Over 90 days past due Expected Percent Uncollectible 1.85% 2.60 7.10 32.55 66.80 Assuming the company uses the percent of sales method, what is the amount that Temper will enter as the Bad Debt Expense in the December 31, adjusting journal entry? A. B. C. D. $42,500.00 $34,278.56 $32,040.56 $36,516.56 Q25 Pete's outstanding stock consists of (a) 12,000 shares of noncumulative 7.50% preferred stock with a $10 par value and (b) 42,500 shares of common stock with a $3 par value. During its first four years of operation, the corporation declared and paid the following total cash dividends. 2010 2011 2012 2013 $0 36,000 110,000 199,000 What is the amount of dividends that the Common Stockholders receive in 2011? Page 6 of 10 A. B. C. D. $27,000 $36,000 $35,100 $0 Q26 A company paid $.80 in cash dividends per share. Its earnings per share is $3.60 and its market price per share is $35. Its dividend yield equals (rounded): A. B. C. D. 2.29% 10.29% 12.57% 8.00% Q27 A company purchased a tract of land for its natural resources at a cost of $1,520,000. It expects to mine 2,400,000 tons of ore from this land. The salvage value of the land is expected to be $290,000. The depletion expense per ton of ore is: A. B. C. D. $.512 $8.28 $.633 $1.58 Q28 XtremeSports has $60,000 of 7% noncumulative, nonparticipating, preferred stock outstanding. Xtreme Sports also has $30,000 of common stock outstanding. In the company's first year of operation, no dividends were paid. During the second year, Xtreme Sports paid cash dividends of $40,000. This dividend should be distributed as follows: A. B. C. D. $4,200 preferred; $35,800 common. $0 preferred; $40,000 common. $20,000 preferred; $20,000 common. $3,700 preferred; $36,300 common. Q29 A credit sale of $2,000 to a customer would result in: A. A debit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable ledger B. A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable ledger C. A credit to the Accounts Receivable account in the general ledger and a debit to the customer's account in the accounts receivable ledger D. A credit to the Accounts Receivable account in the general ledger and a credit to the customer's account in the accounts receivable ledger Q30 A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $10,000. An examination of the company's Page 7 of 10 current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,600; merchandise inventory increased $18,500; prepaid expenses decreased $6,900; accounts payable increased $3,600. Calculate the net cash provided or used by operating activities. A. B. C. D. $145,600. $112,600. $131,500. $202,600. Q31 An employee earned $49,000 during the year working for an employer. The FICA tax for social security is 6.2% and the FICA tax for Medicare is 1.45%. The employee's share of FICA taxes is: A. B. C. D. $3,748.50. $710.50. $4,459.00. Zero, since the employee's pay exceeds the FICA limit. Q32 A company has net sales of $850,000 and average accounts receivable of $173,000. What is its accounts receivable turnover for the period (rounded)? A. B. C. D. 4.91 .20 473.97 74.29 Q33 January 2010, Giant Green Company pays $3,400,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $782,000, with a useful life of 25 years and a $79,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $440,500 that are expected to last another 18 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $2,420,600. Giant Green also incurs the following additional costs: Cost to demolish building 1 Cost of additional land grading Cost to construct new building (building 3), having a useful life of 25 years and a $362,000 salvage value Cost of new land improvements (land improvements 2) near building 2 having a 20-year useful life and no salvage value What is the amount that should be recorded for Land? Page 8 of 10 $440,200 240,000 4,251,000 126,000 A. B. C. D. $2,939,160 $3,400,000 $2,258,960 $4,251,000 Q34 A company receives a 9%, 60day note for $1,600. The total interest due on the maturity date is (Use a 360day year): A. B. C. D. $24.00 $50.36 $29.44 $144.00 Q35 A company sold a machine that originally cost $115,000 for $70,000 cash. The accumulated depreciation on the machine was $45,000. The company should recognize a: A. B. C. D. $0 gain or loss $80,000 gain $70,000 gain $80,000 loss Q36 The purchase of Land results in a cash flow from which type of activity? A. B. C. D. Investing Financing Operating None of the above Q37 A collection of cash from a customer results in which of the following cash flows? A. B. C. D. Operating Financing Investing Neither Q38 If a bond with a par value of $100,000 is issued at 107, what does this mean? A. B. C. D. That the company receives $107,000 upon issuance The company pays $107 of interest each period The company will pay the bondholder $107,000 back at maturity None of the above Page 9 of 10 Q39 If a bond with a stated rate of 5% is issued when the market rate is 8%, which of the following is true? A. B. C. D. The bond will be issued at a discount The bond will be issued at a discount The bond will be issued at a premium None of the above Q40 Which of the following is not a method for reporting depreciation? A. B. C. D. Allowance Method Straight Line Double Declining Balance Units of Production Page 10 of 10