Section II (40 points) Please remember to fill out your answers in the answer sheet. Only the answer sheet will be graded. 1. Froooty Company had 10,000 shares of common stock outstanding at December 31, 2017 and 14,000 shares of common stock outstanding at December 31, 2018. Froooty had sales of S 3,600,000 in 2018 and net income of $300,000 in 2018. What is Froooty's earnings per share reported for 2018? 300ddo -21,4 74dd 21,4 2. The Spicewharf Company has provided the following information: Operating expenses were $345,000; 2 Income from operations was $415.000. 000 Net sales were $1,100,000; Interest expense was $71,000; Exceptional loss from sale of investments was $87.000; Income tax expense was $58,000 What was Spicewharf's gross profit? A. $340,000 B. $689.000 C. $818.000 D. $760,000 3. At the beginning of October, LoXdon Corporation's assets totaled S240,000 and liabilities totaled $60,000. During October the following summarized transactions occurred: Additional shares of stock were issued and sold for $20,000 cash. A building costing $95.000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable. Short-term investments costing $9,000 were purchased using cash. $10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan. How much are LeXdon's total assets at the end of October (211000 2400 00 10000 Booo - 10000 7. The Morningvale Corporation prepares financial statements monthly. The following transactions are October activities of Morningvale. After recording proper and complete journal entries to record each of the following, what will be the change (if any) in Net Income, Total Assets, Total Liabilities, and Shareholders' Equity? Fill in each square in your answer sheet with one of: "Increase" "Decrease" or "No Change". Do not leave any square blank. (Note that the table below is provided for you to practice and will not be graded) Net Income Total Assets Total Liabilities Shareholders 'Equity 7a) Momingvale paid $1,200 on the electricity bill for September (recorded as an expense in September) 7b) During the month, Momingvale purchased $1,500 cash, an insurance for coverage from October 1 to December 31. 7c) Momingvale received the October electricity bill for $1,000 to be paid in November. 8. Which of the following statement(s) is (or are) false? A Under the monetary unit assumption, accounting information should be measured and reported in terms of the national monetary unit, with an adjustment for changes in purchasing power. The trial balance is similar to the balance sheet in that it is a listing of assets, liabilities, and stockholders' equity and is provided to external decision makers. C. One of the advantages/characteristics of a corporation when compared to a partnership is the limited liability of the owners. D. According to the Expense recognition principle, salary expense is recognized on the income statement when the salaries are paid rather than when the employee provides the work. 9. On December 31, 2019. Limeswood Company reported total liabilities of $110,000 prior to the following adjusting entries: Depreciation expense: $31,000. Accrued service revenues: $29,000. Accrued expenses: $12,000. Used insurance: $9.000; the insurance was initially recorded as prepaid. Rent revenue earned: $7.000; the rent was initially prepaid by the tenant and credited to uneamed rent revenue. How much are Limeswood's total liabilities after adjusting entries? A. $115,000. B. $141.000. C 586,000. D$110,000 10. Tastewright Co. prepares financial statements monthly. Record, using proper form, the journal entry for the adjustments which should be recorded at the end of October, 2019. 4900 -100 120-Wert n 1huo. On the September 30th, 2019, Tastewright has lent $48,000 to a new franchisee. The note receivable is a 90-day, 3 percent annual rate. The principal plus all associated interest will be repaid to Tastewright at the due date. The company has recorded that transaction correctly, but on October 31st, 2019, the company needs to make the appropriate adjustment(s). Note rec 48000 Tinterest exn & Sep 30th Section II (40 points) Please remember to fill out your answers in the answer sheet. Only the answer sheet will be graded. 1. Froooty Company had 10,000 shares of common stock outstanding at December 31, 2017 and 14,000 shares of common stock outstanding at December 31, 2018. Froooty had sales of S 3,600,000 in 2018 and net income of $300,000 in 2018. What is Froooty's earnings per share reported for 2018? 300ddo -21,4 74dd 21,4 2. The Spicewharf Company has provided the following information: Operating expenses were $345,000; 2 Income from operations was $415.000. 000 Net sales were $1,100,000; Interest expense was $71,000; Exceptional loss from sale of investments was $87.000; Income tax expense was $58,000 What was Spicewharf's gross profit? A. $340,000 B. $689.000 C. $818.000 D. $760,000 3. At the beginning of October, LoXdon Corporation's assets totaled S240,000 and liabilities totaled $60,000. During October the following summarized transactions occurred: Additional shares of stock were issued and sold for $20,000 cash. A building costing $95.000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable. Short-term investments costing $9,000 were purchased using cash. $10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan. How much are LeXdon's total assets at the end of October (211000 2400 00 10000 Booo - 10000 7. The Morningvale Corporation prepares financial statements monthly. The following transactions are October activities of Morningvale. After recording proper and complete journal entries to record each of the following, what will be the change (if any) in Net Income, Total Assets, Total Liabilities, and Shareholders' Equity? Fill in each square in your answer sheet with one of: "Increase" "Decrease" or "No Change". Do not leave any square blank. (Note that the table below is provided for you to practice and will not be graded) Net Income Total Assets Total Liabilities Shareholders 'Equity 7a) Momingvale paid $1,200 on the electricity bill for September (recorded as an expense in September) 7b) During the month, Momingvale purchased $1,500 cash, an insurance for coverage from October 1 to December 31. 7c) Momingvale received the October electricity bill for $1,000 to be paid in November. 8. Which of the following statement(s) is (or are) false? A Under the monetary unit assumption, accounting information should be measured and reported in terms of the national monetary unit, with an adjustment for changes in purchasing power. The trial balance is similar to the balance sheet in that it is a listing of assets, liabilities, and stockholders' equity and is provided to external decision makers. C. One of the advantages/characteristics of a corporation when compared to a partnership is the limited liability of the owners. D. According to the Expense recognition principle, salary expense is recognized on the income statement when the salaries are paid rather than when the employee provides the work. 9. On December 31, 2019. Limeswood Company reported total liabilities of $110,000 prior to the following adjusting entries: Depreciation expense: $31,000. Accrued service revenues: $29,000. Accrued expenses: $12,000. Used insurance: $9.000; the insurance was initially recorded as prepaid. Rent revenue earned: $7.000; the rent was initially prepaid by the tenant and credited to uneamed rent revenue. How much are Limeswood's total liabilities after adjusting entries? A. $115,000. B. $141.000. C 586,000. D$110,000 10. Tastewright Co. prepares financial statements monthly. Record, using proper form, the journal entry for the adjustments which should be recorded at the end of October, 2019. 4900 -100 120-Wert n 1huo. On the September 30th, 2019, Tastewright has lent $48,000 to a new franchisee. The note receivable is a 90-day, 3 percent annual rate. The principal plus all associated interest will be repaid to Tastewright at the due date. The company has recorded that transaction correctly, but on October 31st, 2019, the company needs to make the appropriate adjustment(s). Note rec 48000 Tinterest exn & Sep 30th