Q-1

Towson Corp.,was organized on January 2, 2018. During the first year of operation, Towson issued 100,000 shares of $3 par value common stock at a price of $35 cash per share.On December 31, 2018, Towson reported Net Income of $250,000 and paid $50,000 cash dividends. Use this information to determine the dollar amounts that Towson will report on its year end Balance Sheet forPaid in Capital Common Stock in Excess to par.

Q-2

Towson Corp., had 4,000 shares of $100 par, 5% cumulativepreferred stock as of January 1, 2018.No additional shares of preferred stock were issued during fiscal years 2018 & 2019.Dividends were paid to common shareholders in 2017 but no shareholders were paid dividends in 2018.A total of $80,000 of dividends was paid in 2019.Use this information to determine the total dollar amount of dividends that was paid to common shareholders during fiscal year 2019.

Q-3

On January 2, 2018, the first year of operations, Brunswick Corp. issued 15,000 shares of $10 par value common stock for $15 per share.On July 1, 2018, 2,000 of these shares were reacquired for $17 each. On September 1, 2018 Brunswick Corp. reissued 900 shares of its treasury stock for $25 per share. No other stock transactions occurred during the rest of fiscal year 2018. Use this information to determine the dollar amount that Brunswick will report on its fiscal year 2018 Balance Sheet forPaid in Capital Treasury Stock.

Q-4

On August 1, 2018, Towson Corp., declared a 10% stock dividend on its common stock when the market value of the common stock was $20 per share.The balance in the common stock account, before the stock dividend was declared, was $900,000.The par value of all common stock is $10.What is the total dollar amount credited to additional paid in capital - common stock on August 1, 2018?

Q-5

Easton Company prepares annual adjusting entries only. During the third quarter of Fiscal Year 2018, Easton Company acquired the following trading securities:

DateCompany # of Shares Price per Share

8/15X Company 1,500 $42

9/25Y Company 1,250 $30

9/30Z Company 1,000 $28

On November 10th, Easton Company sold the Y Company stock for $31 per share. On December 15th, Z Company paid dividends of $0.12 per share. The following were the year-end market values:

Company FMV per Share

X Company $41

Y Company $15

Z Company $27

What the total dollar values that Easton Company should record for the Unrealized Gain or (Loss) on Trading Securities for 2018?Enter a Loss as a negative number.

Q-6

Arundel Company uses aging to estimate uncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance that consists of:

Dollar Value Age of Account Estimated Collectible

$280,000 < 30 days old 98.0%

65,000 30 to 60 days old 91.5%

20,000 61 to 120 days old 76.5%

7,000 > 120 days old16.0%

The current unadjusted Allowance for Uncollectible Accounts balance is a debit balance of $2,000 and the Bad Debt Expense accounts has an unadjusted balance of zero. After the adjusting entry is made, what will be the dollar balances in the Allowance for Doubtful Accounts?Round to nearest whole dollar.

Q-7

ArundelCompany uses percentage of sales to estimateuncollectibles.At the end of the fiscal year, December 31, 2018, Accounts Receivable has a balance of $78,000 and had a total of $805,000 in credit sales.Arundel assumes that 1.5% of sales will eventually be uncollectible.before adjustment, the Allowance for Uncollectible Accounts had a credit balance of 5,000.What dollar amount should be credited to Allowance for Uncollectible Accounts at year end?

Q-8

Salisbury Company uses the perpetual inventory system and had the following inventory & sales activity for the month of May 2019:

Date Activity Quantity Unit Price

5/1 Beginning Inventory 175 $11.00

5/5Purchase 200 $11.00

5/10Sales 300 $25

5/15Purchase 200 $12.50

5/20Sales 250 $28

5/25Purchase 150 $13.50

Using the LIFO method, determine the dollar value for Ending Inventory at the end of month of May.Round to the nearest cent.

Q-9

Adelphi Company purchased a machine on January 1, 2017, for $90,000.The machine was estimated to have a service life of ten years with an estimated residual value of $5,000.Adelphi sold the machine on January 1, 2021 for $30,000. Adelphi uses the double declining method for depreciation. Using this information, how much isthegain or (loss) for the equipment sale entry made on January 1, 2021.Enter a loss as a negative number.

Q-10

Barbara is an employee of Baltimore Company. Baltimore Company pays employees the Friday after the wages are earned. Overtime in excess of 40 hours must be paid at 150% of the normal hourly rate.Social Security taxes are 6.2% and Medicare taxes are 1.45%. The federal unemployment tax rate is 1.2% and the state unemployment tax rate is 3.0%. Barbara's wages, including the current pay period, will not exceed the limits for Social Security, Medicare and unemployment taxes.Barbara earns $18 per hour and worked 48 hours for the week ended January 13 , 2019.Baltimore will withhold $220 federal income taxes. Use this information to determine the totalpayroll tax expense for Baltimore Company as related to Barbara's earnings.(Round to the closest cent)

Q-11

The following is the Easton Company adjusted Trial Balance.

Easton Company

Adjusted Trial Balance

December 31, 2018________

Account Title Debit Credit

Cash $88,665

Accounts Receivable 2 32,400

Supplies 17,000

Equipment 395,000

Accumulated Depreciation $224,260

Accounts Payable 72,555

Capital Stock 220,000

Retained Earnings 127,145

Service Revenue 881,105

Interest Income 5,500

Dividends 9,000

Rent Expense 59,500

Wages Expense 529,000

Supplies Expense 42,000

Utilities Expense 8,000

Depreciation Expense 150,000________

Totals $1,530,565 $1,530,565

Use this information to prepare the Single-Step Income Statement for the fiscal year. There are additional lines in the formatted income statement form to allow for authorized alternate presentations.

Q-12

The following is the Easton Company's adjusted Trial Balance.

Easton Company

Adjusted Trial Balance

December 31, 2018

Account Title Debit Credit

Cash $88,665

Accounts Receivable 232,000

Supplies 17,000

Equipment 395,000

Accumulated Depreciation $224,260

Accounts Payable 72,555

Capital Stock 220,000

Retained Earnings 127,145

Service Revenue 877,105

Interest Income 5,500

Dividends 7,000

Rent Expense 59,900

Wages Expense 529,000

Supplies Expense 40,000

Utilities Expense 8,000

Depreciation Expense 150,000 ________

Totals $1,526,565 $1,526,565

Use this information to prepare the Balance Sheet for the fiscal year. There are additional lines in the formatted Balance Sheet form to allow for authorized alternate presentations.