NAME ACC101 EXAM #3A RFQT Answer the following 30 questions by circling the appropriate letter on this question sheet. 1. Par value a. is the legal capital established for a share of stock. b. represents the original selling price for a share of stock. C. represents what a share of stock is worth. d. is established for a share of stock after it is issued. e none of the above 2. If a company has 900,000 shares of common stock authorized, and has 750,000 shares issued, and holds 30,000 shares of common stock as treasury stock, the general ledger account for common stock, $1 par value would have a balance of a. $870,000 b. $720,000 c. $750,000 d. $150,000 e. none of the above 3. a. All of the following balances are normally found in a corporation's stockholders' equity section except common stock. b. dividends in arrears C. retained earnings. d. paid-in capital in excess of par. none of the above e 4. Preferred stock would least likely have which characteristic? a. The right of the holder to vote at stockholders' meetings. b. The right of the corporation to redeem or retire the stock. Preference as to assets upon liquidation of the corporation. d. Preference as to dividends. none of the above C. e 5. A company purchases 1,500 shares of its $25 par value stock at $35 per share. It then reissues 500 shares at $40 per share. The entry upon reissue of the stock would include a credit to a. Cash for $2,500. b. Paid-in Capital from Treasury Stock for $2,500. c. Retained Earnings for $2,500. d Treasury Stock for $2,500. none of the above e ACC101 EXAM #3A RFQT 6. Prepare a bank reconciliation (on scrap paper) using the following information: a. December 31 balance per bank statement, $250 b. December 31 balance per ledger account, $750 c. Checks outstanding totaled $500 d. Deposit in transit to the bank totaled $750 e. The bank collected $250 on a note receivable that the company was not aware of. f. The bank returned a $500 check marked "NSF" from I. M. Broke, one of the company's customers; the bank also reduced the account by $500. The correct balance of cash on December 31 is: a. $1,000 b. $750 c. $500 d. $250 e. none of the above 7. The journal entry for the above bank reconciliation would be: a. Cash 250 Notes Receivable 250 Accounts Receivable - I. M. Broke 500 750 b. Deposit in transit Outstanding checks Cash 500 250 C. Cash Outstanding checks Deposit in transit 250 500 750 500 d. Accounts Receivable - 1. M. Broke Notes Receivable Cash 250 250 e. none of the above 8. On December 31, the petty cash drawer contained the following: Petty cash vouchers for postage $ 25.00 Petty cash vouchers for entertainment 50.00 Cash (coins and currency) 25.00 Total $100.00 The journal entry to replenish the petty cash fund would be: a. Petty cash 75 Cash 75 100 b. Petty cash Cash 100 c. Postage Expense Entertainment Expense Petty cash Cash 25 50 25 100
