INSERT ANSWERS IN THIS COLUMN NUM QUESTION The Boeing Company purchased 1,000 shares of its own at $90 per share, and later, was able to sell those shares for $98 per share. What effect does this transaction have on Boeing's net income? it would have no effect 1 =IF(AND(COUNTIF(A20, "*"&"both"&"*"),COUNTIF(A20, **& "employer"&"*")),1,0) Johnson Corp's common stock had a balance of $4,000,000 and a par value of $25 per share. If Johnson declared a cash dividend of $1.25 per share, what is the total amount of the dividend? Show calculations: 200000 1 Investment A offers cash flows of $1,000, $2,000 and $3,000 in years 1, 2 and 3 respectively, while investment B offers cash flows of $1,000, $1,000 and $1,000. Which investment (A or B) is an annuity and why? 3 0 Bob invested $4,000 in an account that earns 6% per year. How much will the investment grow to in four years' time? Show calculations 4 0 Betty earns $18 per hour and time-and-a-half for each hour over 40 hours. If Betty worked 44 hours this week, what was her gross pay? 0 Wilson purchased a $100,000 building, with estimated salvage value of $10,000 and a life of 5 years. If Wilson uses straight line depreciation, what is the accumulated depreciation after two years of using the asset? Show calculations 6 0 Dana borrows $3,000 for 3 years at 6% interest with annual payments. Calculate Dana's payment: 0 Jack sells equipment with cost of $12,000, and accumulated depreciation of $9,000. If the equipment is sold for $5,000, Jack has a (gain or loss?). of $ 0 Tim is thinking about investing in a 3-year, $5,000 annuity. How much should Tim pay for this annuity if he desires a rate of return of 8%? Calculations: 9 0 both When making payroll calculations, the accountant must remember that FICA (Social Security) taxes are paid by (employer or employee or both?) and that unemployment taxes are paid by (employer or employee or both?) both employer 10 1 two conditions =IF(AND(COUNTIF(A20, "*"&"both"&"*"),COUNTIF(A20, "*"&"employer"&"*")),1,0) Clayton Corporation purchased equipment for $10,000. The equipment had a 4 year life with $1,000 salvage value. What is the book value of this equipment after two years? (Use SL depreciation) 2250 11 1 SL here? Lancer purchased 22,000 shares of its $1.00 par common stock for $12 per share, as treasury stock. What effect will this purchase have on the stockholders' equity of Lancer? Will stockholders' equity increase or decrease, and by how much? no effect, decrease by 264000 12 1 13 Name one method of depreciation that is considered accelerated. 0 Which of the following is an income taxable entity? A. Proprietorship b. Partnership c. Corporation d. All of these are income taxable entities 14 0 Remington Corporation issued 12,000 shares of its $1.00 par common stock on January 1 for $6.00 per share. On July 7, the company declared a 10% stock dividend when the market value of the shares was $7.00. How many shares were outstanding after the dividend? 15 0 On the cash flow statement, a gain will be added or subtracted?) from net income and a loss will be added or subtracted?)_ from net income in the operations section of the statement. 6 0 0 Barney invests $1,000 today. What is the future value of this investment at the end of 5 years, if the money is invested at 8%? 17 0 Robert borrows $5,000 for 3 years with annual payments. If Robert borrows the money at 10%, what will Bob's annual payment be? 18 0 On a cash flow statement, an increase in Accounts Receivable will be shown in which section, and will it be added or subtracted? 19 0 Clark Company had net income of $42,000, depreciation expense of $3,000, increase in Accounts Receivable of $10,000 and increase in Accounts Payable of $5,000. What is the cash flow from operations? 20 0 Johnson Corporation issued bonds at a discount because the interest rate offered on the bond was less than the market rate. This discount represents: a. extra income for Johnson b. extra future interest expense for Johnson 21 c. less future interest expense for Johnson d. none of these 0 INSERT ANSWERS IN THIS COLUMN NUM QUESTION The Boeing Company purchased 1,000 shares of its own at $90 per share, and later, was able to sell those shares for $98 per share. What effect does this transaction have on Boeing's net income? it would have no effect 1 =IF(AND(COUNTIF(A20, "*"&"both"&"*"),COUNTIF(A20, **& "employer"&"*")),1,0) Johnson Corp's common stock had a balance of $4,000,000 and a par value of $25 per share. If Johnson declared a cash dividend of $1.25 per share, what is the total amount of the dividend? Show calculations: 200000 1 Investment A offers cash flows of $1,000, $2,000 and $3,000 in years 1, 2 and 3 respectively, while investment B offers cash flows of $1,000, $1,000 and $1,000. Which investment (A or B) is an annuity and why? 3 0 Bob invested $4,000 in an account that earns 6% per year. How much will the investment grow to in four years' time? Show calculations 4 0 Betty earns $18 per hour and time-and-a-half for each hour over 40 hours. If Betty worked 44 hours this week, what was her gross pay? 0 Wilson purchased a $100,000 building, with estimated salvage value of $10,000 and a life of 5 years. If Wilson uses straight line depreciation, what is the accumulated depreciation after two years of using the asset? Show calculations 6 0 Dana borrows $3,000 for 3 years at 6% interest with annual payments. Calculate Dana's payment: 0 Jack sells equipment with cost of $12,000, and accumulated depreciation of $9,000. If the equipment is sold for $5,000, Jack has a (gain or loss?). of $ 0 Tim is thinking about investing in a 3-year, $5,000 annuity. How much should Tim pay for this annuity if he desires a rate of return of 8%? Calculations: 9 0 both When making payroll calculations, the accountant must remember that FICA (Social Security) taxes are paid by (employer or employee or both?) and that unemployment taxes are paid by (employer or employee or both?) both employer 10 1 two conditions =IF(AND(COUNTIF(A20, "*"&"both"&"*"),COUNTIF(A20, "*"&"employer"&"*")),1,0) Clayton Corporation purchased equipment for $10,000. The equipment had a 4 year life with $1,000 salvage value. What is the book value of this equipment after two years? (Use SL depreciation) 2250 11 1 SL here? Lancer purchased 22,000 shares of its $1.00 par common stock for $12 per share, as treasury stock. What effect will this purchase have on the stockholders' equity of Lancer? Will stockholders' equity increase or decrease, and by how much? no effect, decrease by 264000 12 1 13 Name one method of depreciation that is considered accelerated. 0 Which of the following is an income taxable entity? A. Proprietorship b. Partnership c. Corporation d. All of these are income taxable entities 14 0 Remington Corporation issued 12,000 shares of its $1.00 par common stock on January 1 for $6.00 per share. On July 7, the company declared a 10% stock dividend when the market value of the shares was $7.00. How many shares were outstanding after the dividend? 15 0 On the cash flow statement, a gain will be added or subtracted?) from net income and a loss will be added or subtracted?)_ from net income in the operations section of the statement. 6 0 0 Barney invests $1,000 today. What is the future value of this investment at the end of 5 years, if the money is invested at 8%? 17 0 Robert borrows $5,000 for 3 years with annual payments. If Robert borrows the money at 10%, what will Bob's annual payment be? 18 0 On a cash flow statement, an increase in Accounts Receivable will be shown in which section, and will it be added or subtracted? 19 0 Clark Company had net income of $42,000, depreciation expense of $3,000, increase in Accounts Receivable of $10,000 and increase in Accounts Payable of $5,000. What is the cash flow from operations? 20 0 Johnson Corporation issued bonds at a discount because the interest rate offered on the bond was less than the market rate. This discount represents: a. extra income for Johnson b. extra future interest expense for Johnson 21 c. less future interest expense for Johnson d. none of these 0
