Quiz

Note: It is recommended that you save your response as you complete each question.

Directions: This quiz tests how well you understand the concepts covered in Weeks 1-4. .It contains 10 multiple-choice questions worth 5 points each. Journal Entries 1 and 2 are worth 12.5 points each. Problems 1 and 2 are worth 12.5 points each.

The computer will automatically grade the multiple-choice questions, but grading will not be complete until your instructor manually grades the short-answer questions. Your instructor may grant partial credit on short-answer questions for less than complete answers.

You can take the quiz only once. You can save each question after answering, and you can save the quiz before submitting. Once you have submitted the quiz, you will receive a score and be able to compare your answers to the correct answers.

Multiple Choice Questions

Select the best answer for the following questions. Each question is worth 5 points

Question 1 (5 points) Question 1 Unsaved

The Washington Company has 100,000 shares of $10 par common stock outstanding. Management declares (not pays) a 10% stock dividend. The market value of a share of common stock was $30 immediately prior to the stock dividend declaration. The journal entry is:

Question 1 options:

.debit stock dividends distributable, $100,000; credit common stock, $100,000.

debit retained earnings, $300,000; credit stock dividend distributable, $100,000; credit paid in capital in excess of par, $200,000

debit stock dividends distributable, $300,000; credit common stock, $300,000.

debit retained earnings, $300,000; credit stock dividend distributable, $10,000; credit paid in capital in excess of par, $290,000.

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Question 2 (5 points) Question 2 Unsaved

Spiffy Dress Company previously purchased 10,000 shares of treasury stock on the open market for $10 per share. Later, the company resells 6,000 shares for $12 per share. What is the journal entry for the sale?

Question 2 options:

debit cash, $72,000; credit treasury stock, $12,000; credit additional paid-in capital, $60,000

debit cash, $72,000; credit treasury stock, $72,000

debit cash, $72,000; credit treasury stock, $60,000; credit additional paid-in capitaltreasury stock, $12,000

debit cash, $72,000; credit treasury stock, $60,000; credit retained earnings, $12,000

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Question 3 (5 points) Question 3 Unsaved

Green Ventures Inc. purchased 10% of the outstanding stock of Jones Company. Green paid $15 per share to acquire 8,000 shares and will treat this purchase as available-for-sale securities. Par value of the stock is 50 cents. Green uses a calendar year, and on December 31, the market value of Jones stock is $17 per share. What is the entry Green needs to make on December 31?

Question 3 options:

debit unrealized gain on available-for-sale securities, $16,000; credit available-for-sale securities, $16,000.

no entry is required because the stock has not been sold.

debit available-for-sale securities, $8,000; credit unrealized gain on available-for-sale securities, $8,000.

debit available-for-sale securities, $16,000; credit unrealized gain on available-for-sale securities, $16,000.

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Question 4 (5 points) Question 4 Unsaved

On January 10, Bowie Ventures Inc. purchased 40% of the outstanding stock of Mighty Manufacturing Corp. The purchase was 30,000 shares at $10 per share. Bowie received dividends from Mighty in the amount of $20,000 on June 15 and again on December 15. Mighty reported net income for the year ended December 31 in the amount of $300,000. What is the journal entry, if any, that Bowie needs to make dated December 31?

Question 4 options:

Debit investment in Mighty Corp., $120,000; credit income from Mighty Corp., $120,000

Debit investment in Mighty Corp., $100,000; credit income from Mighty Corp., $100,000.

No entry on December 31 because the dividends were paid on different dates.

Debit investment in Mighty Corp., $120,000; credit income from Mighty Corp., $100,000; credit dividends income, $20,000.

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Question 5 (5 points) Question 5 Unsaved

On January 1, 2017, Montgomery Inc. issued $250,000, 20-year, 5% bonds at 101. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2017, is:

Question 5 options:

debit cash, $250,000; credit bonds payable, $200,000.

debit cash, $252,500; credit bonds payable, $250,000; credit premium on bonds payable, $2,500.

debit cash, $250,000; debit premium on bonds payable, $5,000; credit bonds payable, $255,000.

debit cash, $252,500; credit bonds payable, $252,500.

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Question 6 (5 points) Question 6 Unsaved

Using the selected data below, calculate the net cash provided by operating activities:

Net income $250,000

Increase in accounts receivable $13,000

Increase in accounts payable $10,000

Loss on the sale of equipment $8,000

Depreciation expense $21,000

Purchase of new delivery truck $40,000

Question 6 options:

260,000

$282,000

$276,000

$263,000

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Question 7 (5 points) Question 7 Saved

AA Corporation has 250,000 shares of $10 par common stock issued and outstanding. AA Corporation also has 50,000 shares of $100, 6% par cumulative preferred stock. In 2017, AA had net income of $3,500,000. The number of shares of both common and preferred stock has not changed during the year, and the preferred stock dividends were paid at the end of 2017. What are the common earnings per share (EPS) for 2017? Round to the nearest cent.

Question 7 options:

$14.20

$14.00

13.73

12.80

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Question 8 (5 points) Question 8 Unsaved

A manufacturing company allocates overhead at a fixed rate of $40 per hour based on direct labor hours. During the month, total overhead incurred was $280,000, and the total direct labor hours work was 4,000. Job number 5-23 had 500 hours of direct labor. What is the amount of overhead allocated to job 5-23?

Question 8 options:

$25,000

$35,000

$27,500

$20,000

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Question 9 (5 points) Question 9 Unsaved

The welding department had beginning work in process of 20,000 units, ending work in process of 26,000 units, and units transferred out of 60,000 units. What was the number of units started or transferred in?

Question 9 options:

58,000

620,000

66,000

70,000

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Question 10 (5 points) Question 10 Unsaved

Ziggy Corp. is a job lot manufacturer. The budget for the month of May calls for 8,000 direct labor hours to be worked. Budgeted overhead is $88,000 with a predetermined rate of $11 per hour. Overhead is applied based on actual direct hours worked. Actual direct hours were 8,300 and actual overhead spending was $88,500. What was the under applied or over applied overhead for the month of May? Over applied is shown as a negative number.

Question 10 options:

$3,500

$2,800

($2,800)

($3,500)

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Problems

For this part of the quiz, download the answer sheet found in the Mid-term assignment folder. When complete,upload your answer sheet to the Mid-Term Quiz Assignment folder.

Journal Entries

For this part of the quiz, you will be saving your work on the answer sheet that can be found in the mid-term assignment folder.The answer sheet should be uploaded to the mid-term assignment folder.

Question 11 (12.5 points) Question 11 Unsaved

This problem is worth 12.5 points.

Kesha Company uses the straight-line method for amortization of all bond premium & discounts. During fiscal year 2016 Alpha had the following bond payable transactions:

January 2, issued ten, $1,000 bonds at 102 1/2. These 5-year bonds are dated January 1, 2016. The contract interest rate is 6%.Interest is payable semi-annual on January 1 and July 1.

July 1, Kesha issued $500,000 of 10%, 10-year bonds.The bonds are dated January 1, 2016 were issued at 88 1/2, and pay interest on July 1 and January 1.

October 1, Kesha issued 10-year bonds $10,000 face value bonds for $10,860 cash. The bonds have a stated rate of 8%. Interest is payable on October 1 and April 1.

Use this information to prepare General Journal entries for the three bonds issued and any interest accruals and payments for the fiscal year 2016. Three 12/31/16 transaction dates are provided for the fiscal year accruals. One for each individual bond issue. (Round all calculations to nearest whole dollar.)

Question 11 options:

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Question 12 (12.5 points) Question 12 Unsaved

JE#2 Part A

On January 2, 2017,Pink Company purchased 10,000 shares of the stock of D-12 Company, and did not obtain significant influence.The investment is intended as a long-term investment. The stock was purchased for $10 per share, and represents a 10% ownership stake.D-12 Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017. On December 31, 2017, D-12 Company's stock was trading on the open market for $12 per share at the end of the year.Use this information to prepare the General Journal entry(ies) for January 2 purchase and the December 15 & 31, 2017 record of income & gain/loss. If no entry is required then write "No Entry Required."

JE #2 Part B

On January 1, 2017, Pink Company purchased a significant influence shares investment in the Winehouse Company for $250,000.This investment balance represents 40% of the equity of the Winehouse Company.During 2017, Winehouse Company reported Net Income of $25,000 on November 15, 2017 Winehouse Company paid cash dividends of $10,000 to its shareholders. Use this information to prepare the January 1, November 15 and December 31, 2017 General Journal entry (without explanation.) If no entry is required, then write "No Entry Required."

Question 12 options:

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Question 13 (25 points) Question 13 Unsaved

Problem #1

Zeppelin Company manufactures quality gentlemen's clothing.The following selected financial information for the fiscal year 2016 is provided:

Item

Amount

Sales

$100,000

Cost of Goods Manufactured

75,000

Direct Material Purchased

30,000

Factory Overhead

10,000

Work in Process - January 1

30,000

Work in Process - December 31

15,000

Direct Material - December 31

10,000

Finished Goods Inventory - December 31

60,000

Net Income

15,000

Direct Materials used

30,000

Cost of Goods Sold

55,000

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2016: (Round dollar values & enter as whole dollars only.)

Problem #2

During March 2017, Zappa Corporation recorded $17,500 of costs related to factory overhead.Zappa's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $15,000 would be incurred, and 10,000 direct labor hours would be worked.During March, 10,100 hours were actually worked. Use this information to determine (round & enter any final dollar answers to the nearest whole dollar):

1. the amount of factory overhead that was applied in March

2. the amount of factory overhead that was over or under applies

3. was the factory overhead was over applied or under applied