ACCT 221

THE EXCEL SHEET IS THE ANSWER SHEET.

 

YOU CAN GIVE ME A PRICE.

 

9 PROBLEMS

Chapters

1

3

& 1

4

1. Becker Company is a publicly held corporation whose $1 par value stock is actively traded at
$

2

0 per share. The company issued 2,000 shares of stock to acquire land recently advertised at
$

5

0,000. When recording this transaction, Becker Company will

a. debit Land for $50,000.
b. credit Common Stock for $40,000.
c. credit Paid-In Capital in Excess of Par Value for $48,000.
d. debit Land for $40,000.

2. The acquisition of treasury stock by a corporation
a. decreases its total assets and total stockholders’ equity.
b. has no effect on total assets and total stockholders’ equity.
c. requires that a gain or loss be recognized on the income statement.
d. increases its total assets and total stockholders’ equity.

3. Dividends in arrears on cumulative preferred stock
a. are considered to be a non-current liability.

b. are considered to be a current liability.
c. should be disclosed in the notes to the financial statements.
d. only occur when

preferred dividends have been declared.

4. On January 2, 2010, Riley Corporation issued 20,000 shares of

6

% cumulative preferred stock at
$100 par value. On December 31, 2013, Riley Corporation declared and paid its first dividend.
What dividends are the preferred stockholders entitled to receive in the current year before any
distribution is made to common stockholders?
a. $0
b. $120,000
c. $360,000
d. $480,000

5. Stock dividends and stock splits have the following effects on retained earnings:
Stock Splits Stock Dividends
a. Increase No change
b. Decrease Decrease
c. No change No change
d. No change Decrease

6. Indicate the respective effects of the declaration of a cash dividend on the following balance
sheet sections:

Total Assets Total Liabilities Total Stockholders’ Equity
a. Increase Decrease No change
b. No change Increase Decrease
c. Decrease Increase Decrease
d. Decrease No change Increase

Due Date: Sunday, April

7

@ 11 p.m. ET submit via WebTycho Assignment Folder

1

7. When computing earnings per share,
a. an adjustment related to preferred stock dividends is made in the numerator and

denominator of the earnings per share formula.
b. an adjustment for the preferred dividends is made in the denominator of the earnings per

share formula.
c. the dividends for cumulative preferred stock are deducted from net income whether or not

preferred dividends have been declared.
d. the dividends for cumulative preferred stock are deducted from net income only if the

preferred dividends have been declared.

8.
Milner Corporation had 200,000 shares of common stock outstanding during the year. Milner
declared and paid cash dividends of $200,000 on the common stock and $160,000 on the
preferred stock. Net income for the year was $880,000. What is Milner’s earnings per share?
a. $2.60
b. $3.40
c. $3.60
d. $4.40

Chapter 1

5

9. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-
term financing is that

a. bond interest is deductible for tax purposes.
b. income to stockholders may increase as a result of trading on the equity.
c. the bondholders do not have voting rights.
d. interest must be paid on a periodic basis regardless of earnings.

10. A legal document which summarizes the rights and privileges of bondholders as well as the
obligations and commitments of the issuing company is called

a. a bond indenture.
b. a bond debenture.
c. trading on the equity.
d. a term bond.

11. A major disadvantage resulting from the use of bonds is that
a. earnings per share may be lowered.
b. bondholders have voting rights.
c. taxes may increase.
d. interest must be paid on a periodic basis.

12.
The statement that “Bond prices vary inversely with changes in the market interest rate” means
that if the

a. market rate of interest increases, the contractual interest rate will decrease.
b. contractual interest rate increases, then bond prices will go down.
c. contractual interest rate increases, the market rate will decrease.
d. market interest rate decreases, then bond prices will go up.

13. Bond interest paid is
a. higher when bonds sell at a discount.
b. lower when bonds sell at a premium.
c. the same whether bonds sell at a discount or a premium.
d. higher when bonds sell at a discount and lower when bonds sell at a premium.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder

2

14. Gomez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 2, 2013, at 98. The
journal entry to record the issuance will show a
a. debit to Cash of $2,000,000.
b. credit to Discount on Bonds Payable for $40,000.
c. credit to Bonds Payable for $1,960,000.
d. debit to Cash for $1,960,000.

15. The sale of bonds above face value
a. will cause the total cost of borrowing to be less than the bond interest paid.
b. will cause the total cost of borrowing to be more than the bond interest paid.
c. will have no net effect on Interest Expense by the time the bonds mature.
d. is a rare occurrence.

16. Hoffman Corporation retires its bonds at 106 on January 1, following the payment of semi-
annual interest. The face value of the bonds is $400,000. The carrying value of the bonds at the
redemption date is $419,800. The entry to record the redemption will include a
a. credit of $19,800 to Loss on Bond Redemption.
b. debit of $24,000 to Premium on Bonds Payable.
c. credit of $4,200 to Gain on Bond Redemption.
d. debit of $19,800 to Premium on Bonds Payable.

Chapter 16

Use the following information for questions 17–19.

On January 1, 2013, Turner Company purchased at face value, a $1,000, 7% bond that pays interest on
January 1 and July 1. Turner Company has a calendar year end.

17. The entry for the receipt of interest on July 1, 2013, is
………………………………………………………………………………….a. Cash 35

………………………………………………………… Interest Revenue 35
………………………………………………………………………………….b. Cash 70

………………………………………………………… Interest Revenue 70

……………………………………………………………….c. Interest Receivable 35

………………………………………………………… Interest Revenue 35
……………………………………………………………….d. Interest Receivable 70

………………………………………………………… Interest Revenue 70

18. The adjusting entry on December 31, 2013, is
a. not required.

………………………………………………………………………………….b. Cash 35
………………………………………………………… Interest Revenue 35

……………………………………………………………….c. Interest Receivable 35
………………………………………………………… Interest Revenue 35

……………………………………………………………….d. Interest Receivable 35
……………………………………………………….. Debt Investments 35

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder

3

19. The entry for the receipt of interest on January 1, 2014 is
………………………………………………………………………………….a. Cash 70

………………………………………………………… Interest Revenue 70
………………………………………………………………………………….b. Cash 70

……………………………………………………… Interest Receivable 70
………………………………………………………………………………….c. Cash 35

………………………………………………………… Interest Revenue 35
………………………………………………………………………………….d. Cash 35

………………………………………………………Interest Receivable 35

20. When an investor owns between 20% and 50% of the common stock of a corporation, it is
generally presumed that the investor

a. has insignificant influence on the investee and that the cost method should be used to
account for the investment.

b. has significant influence on the investee and that the equity method should be used to
account for the investment.

c. should apply the cost method in accounting for the investment.
d. will prepare consolidated financial statements.

21. If the equity method is being used, cash dividends received
a. are credited to Dividend Revenue.

b. require no entry because investee net income has already been recorded at the proper
proportion on the investor’s books.

c. are credited to the Stock Investments account.
d. are credited to the Revenue from Investment in Stock account.

22. In recognizing a decline in the fair value of short-term stock investments, an unrealized loss
account is debited because

a. management intends to realize this loss in the near future.
b. the securities have not been sold.
c. the stock market is volatile.
d. management cannot determine the exact amount of the loss in value.

23. The Market Adjustment account
a. is set up for each security in the company’s

portfolio.

b. is closed at the end of each accounting period.
c. appears on the income statement as Other Expenses and Losses.
d. relates to the entire portfolio of securities held by the company.

24. On January 2, Matthews Corporation acquired 20% of the outstanding common stock of
Dennehy Company for $450,000. For the year ended December 31, Dennehy reported net
income of $90,000 and paid cash dividends of $30,000 on its common stock. At December 31,
the carrying value of Matthews’ investment in Dennehy under the equity method is
a. $444,000.
b. $450,000.
c. $456,000.
d. $462,000.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder

4

Chapter 17

25. The acquisition of land by issuing common stock is
a. a cash transaction and would be reported in the body of a statement of cash flows.
b. a noncash transaction which is not reported in the body of a statement of cash flows.
c. a noncash transaction and would be reported in the body of a statement of cash flows.
d. only reported if the statement of cash flows is prepared using the direct method.

26. Financing activities involve
a. issuing debt.
b. lending money.
c. acquiring investments.
d. acquiring long-lived assets.

27. Investing activities include
a. collecting cash on loans made.
b. obtaining cash from creditors.
c. repaying money previously borrowed.
d. obtaining capital from owners.

28. Cash receipts from interest and dividends are classified as
a. financing activities.
b. investing activities.
c. operating activities.
d. either financing or investing activities.

29. Flynn Company reported a net loss of $20,000 for the year ended December 31, 2013. During
the year, accounts receivable decreased $10,000, merchandise inventory increased $16,000,
accounts payable increased by $20,000, and depreciation expense of $10,000 was recorded.
During 2013, operating activities
a. used net cash of $4,000.
b. used net cash of $16,000.
c. provided net cash of $4,000.
d. provided net cash of $16,000.

30. Each of the following is added to net income in computing net cash provided by operating
activities except

a. amortization expense.
b. a gain on sale of equipment.
c. an increase in accrued expenses payable.
d. a decrease in inventory.

31. Which of the following adjustments to convert net income to net cash provided by operating
activities is incorrect?

Add to Net Income Deduct from Net Income
a. Accounts Receivable decrease increase
b. Prepaid Expenses increase decrease
c. Inventory decrease increase
d. Accounts Payable increase decrease

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
5

32. Using the indirect method, if equipment is sold at a gain, the
a. sale proceeds received are deducted in the operating activities section.
b. sale proceeds received are added in the operating activities section.
c. amount of the gain is added in the operating activities section.
d. amount of the gain is deducted in the operating activities section.

Chapter 18

33. Short-term creditors are usually most interested in evaluating
a. solvency.
b. marketability.
c. liquidity.
d. profitability.

34. A stockholder is interested in the ability of a firm to
a. pay consistent dividends.
b. appreciate in share price.
c. survive over a long-period.
d. all of these.

35. Assume the following sales data for a company:
2013 $1,000,000
2012 900,000
2011 750,000
2010 600,000

If 2010 is the base year, what is the percentage increase in sales from 2010 to 2012?
a. 100%
b. 150%
c. 50%
d. 66.7%

36. Walker Clothing Store had a balance in the Accounts Receivable account of $780,000 at the
beginning of the year and a balance of $820,000 at the end of the year. Net credit sales during
the year amounted to $8,000,000. The average collection period of the receivables in terms of
days was
a. 30 days.
b. 365 days.
c. 10 days.
d. 37 days.

37. Parr Hardware Store had net credit sales of $5,200,000 and cost of goods sold of $4,000,000 for
the year. The Accounts Receivable balances at the beginning and end of the year were $600,000
and $700,000, respectively. The receivables turnover was
a. 7.4 times.
b. 8.7 times.
c. 6.2 times.
d. 8 times.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
6

Use the following information for questions 38–40.

Waters Department Store had net credit sales of $12,000,000 and cost of goods sold of $9,000,000 for
the year. The average inventory for the year amounted to $2,000,000.

38. Inventory turnover for the year is
a. 6 times.
b. 10.5 times.
c. 4.5 times.
d. 3 times.

39. The average number of days in inventory during the year (assuming 365 days in a year) was
a. 122 days.
b. 81 days.
c. 61 days.
d. 35 days.

40. Holt Company reported the following on its income statement:
Income before income taxes $420,000
Income tax expense 120,000
Net income $300,000

An analysis of the income statement revealed that interest expense was $50,000. Holt
Company’s times interest earned was
a. 9.4 times.
b. 8.4 times.
c. 7 times.
d. 6 times.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
7

ACCT 221
Midterm Problems

1. Albert Corporation is authorized to issue 1,500,000 shares of $4 par value common stock. During
2013, its first year of operation, the company has the following stock transactions.
Jan. 15 Issued 500,000 shares of stock at $11 per share.
Jan.
30
The company’s attorney accepted 3,500 shares of common stock as payment for legal

services rendered in helping the company incorporate. The legal services are estimated to
have a value of $28,000.

July 2 Issued 100,000 shares of stock for land. The land had an asking price of $2,000,000. The
stock is currently selling on a national exchange at $14 per share.

Instructions
Journalize the transactions for Albert Corporation.

2. Vero Corporation has the following stockholders’ equity accounts on January 1, 2013:

The company uses the cost method to account for treasury stock transactions. During 2013, the
following treasury stock transactions occurred:

March 1 Purchased 12,000 shares at $18 per share.
July 1 Sold 3,500 shares at $21 per share.
Sept 1 Sold 3,100 shares at $14 per share.

Instructions
Journalize the treasury stock transactions for 2013.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
1

Common Stock, $10 par value $1,500,000

Paid-in Capital in Excess of Par 200,000

Retained Earnings 500,000

Total Stockholders’ Equity $2,200,000

3. Domino Corporation was organized on January 1, 2011. During its first year, the corporation issued
20,000 shares of $5 par value preferred stock and 200,000 shares of $1 par value common stock. At
December 31, the company declared the following cash dividends:

Year Dividend

2011 5,000

2012 15,000

2013 35,000

Instructions
(a) Show the allocation of dividends to each class of stock, assuming the preferred stock dividend

is 8% and cumulative.

(b) Journalize the declaration of the cash dividend at December 31, 2013.

4. On January 1, 2013, Alsace Corporation had $3,000,000 of $5 par value common stock outstanding
that was issued at par and retained earnings of $2,000,000. The company issued 250,000 shares of
common stock at $14 per share on July 1. On December 15, the board of directors declared a 15%
stock dividend to stockholders of record on December 31, 2013, payable on January 15, 2014. The
market value of Alsace Corporation stock was $18 per share on December 15 and $20 per share on
December 31. Net income for 2013 was $550,000.

Instructions
Journalize the issuance of stock on July 1, the declaration of the stock dividend on December 15,
2013, and the issuance of the stock dividend on January 15, 2014.

5. Prepare the journal entries for the following two independent situations:

(a) On January 1, 2013, Hathaway Corporation issued $300,000, 11%, 10-year bonds for $291,780.
The bonds were sold to yield an effective-interest rate of 12%. Prepare the journal entry that
Hathaway Corporation would make on January 1.

(b) Monaghan, Inc. redeemed $500,000 of its bonds at 96 on June 30, 2013, and immediately
retired them. The carrying value of the bonds on the retirement date was $493,500. The bonds
pay semiannual interest and the interest payment due on June 30, 2013 has been made and
recorded. Prepare the journal entry to record the retirement of these bonds.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
2

6. On December 31, 2012, Rhadik, Inc. owned the following securities, held as a short-term investment
(trading securities). The securities are not held for influence or control of the investee.

On December 31, 2012, the total fair value of the securities was equal to its cost. In 2013, the
following transactions occurred:
July 1 Received $2.25 per share cash dividend on BOD Co. common stock.
Aug 1 Received $0.90 per share cash dividend on Carter Co. common stock.
Sept 1 Sold 1,500 shares of BOD Co. common stock for cash at $7.50 per share, less brokerage

fees of $500.
Oct 1 Sold 1,200 shares of Carter Co. common stock for cash at $28 per share, less brokerage

fees of $900.

At year end on December 31, 2013, the market values per share were:

Instructions
(a) Prepare the journal entries to record the 2013 stock transactions.
(b) On December 31, 2013, prepare any adjusting entry that might be necessary relative to the

portfolio.

7. Information pertaining to long-term investments in stock in 2013 by Tater Corporation follows:

Obtained significant influence over Tot Company by buying 30% of its 180,000 outstanding shares
of common stock at a total cost of $28 per share on January 1, 2013. On June 15, Tot Company
declared and paid a cash dividend of $1.80 per share. On December 31, Tot’s reported net income
was $520,000.

Instructions
Prepare journal entries for January 1, June 15, and December 31 for Tater Corporation.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
3

Stock
# of

Shares Cost

Carter Common Stock 3,200 76,800

BOD Common Stock 6,400 51,840

Williams Common Stock 2,700 34,290

162,930

Carter Common Stock $27.00

BOD Common Stock $5.00

Williams Common Stock $15.00

8. A comparative balance sheet and income statement for Momma, Inc. is presented below:

Additional information
• Bonds matured and were paid off at face value for cash.
• Plant assets costing $119,000 were purchased for cash during the year.
• Old plant assets having an original cost of $80,500 were sold for $2,100 cash.
• Hint: You can determine cash dividends paid using information about retained earnings and net

income.

Instructions
For the year ended 2013, prepare a statement of cash flows using the indirect method.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
4

Momma, Inc.
Comparative Balance Sheets

December 31

Momma, Inc.
Comparative Balance Sheets
December 31
Momma, Inc.
Comparative Balance Sheets
December 31

Assets

2013 2012

Cash 129,222 167,760

Accounts Receivable 129,920 146,200

Inventories 157,500 143,990

Prepaid Expenses 39,760 36,400

Investments 193,200 159,600

Plant Assets 378,000 339,500

Accumulated Depreciation (77,400) (72,800)

Total Assets 950,202 920,650

Liabilities & Equity

Accounts Payable 156,800 194,220

Accrued Expenses 23,100 23,800

Bonds Payable 175,000 210,000

Common Stock 320,000 245,000

Retained Earnings 275,302 247,630

Total Liabilities & Equity 950,202 920,650

Momma, Inc.
Income Statement

For the Year Ended December 31, 2013

Momma, Inc.
Income Statement
For the Year Ended December 31, 2013
Momma, Inc.
Income Statement
For the Year Ended December 31, 2013

Sales 459,427

Less:

Cost of Goods Sold 201,865

Operating Expenses 112,274

Depreciation Expense 73,500

Income Taxes 12,350

Interest Expense 7,766

Loss on Sale of Plant Assets 10,500 418,255

Net Income 41,172

9. The financial statements of Dobson Company appear below:

Additional information
• All sales were credit sales.
• Market value of common stock on December 31, 2013, was $28 per share.
• Hint: You can determine the weighted-average common shares and cash dividends paid using

information in the stockholders’ equity section of both balance sheets and net income.

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
5

Dobson, Inc.
Income Statement

For the Year Ended December 31

Dobson, Inc.
Income Statement
For the Year Ended December 31
Dobson, Inc.
Income Statement
For the Year Ended December 31
2013 2012

Net Sales 615,000 580,000

Cost of Goods Sold 405,000 354,000

Gross Margin 210,000 226,000

Selling & Administrative Expenses 120,800 114,800

Income from Operations 89,200 111,200

Other Expense & Losses

Interest Expense 7,800 6,000

Income before Taxes 81,400 105,200

Income Tax Expense 18,000 14,000

Net Income 63,400 91,200

Dobson, Inc.
Balance Sheets
December 31

Dobson, Inc.
Balance Sheets
December 31
Dobson, Inc.
Balance Sheets
December 31

Assets 2013 2012

Current Assets

Cash 31,000 18,000

Short-term Investments 13,000 15,000

Accounts Receivable, net 98,000 74,000

Inventories 102,000 88,000

Total Current Assets 244,000 195,000

Plant Assets, net 421,400 393,000

Total Assets 665,400 588,000

Liabilities & Equity

Current Liabilities

Accounts Payable 112,000 110,000

Income Taxes Payable 23,000 28,000

Total Current Liabilities 135,000 138,000

Bonds Payable 114,000 92,000

Stockholders’ Equity

Common Stock ($5 par) 150,000 150,000

Retained Earnings 266,400 208,000

Total Stockholders’ Equity 416,400 358,000

Total Liabilities & Equity 665,400 588,000

Instructions
Compute the following ratios for Dobson Company for 2013 (round to 3 decimal places):
(a) Current Ratio
(b) Acid-test (quick ratio)
(c) Receivables Turnover
(d) Inventory Turnover
(e) Profit Margin
(f) Asset Turnover
(g) Return on Assets
(h)
Return on Common Stockholders’ Equity
(i) Earnings per Share
(j) Price-Earnings (P-E) Ratio
(k) Payout Ratio
(l) Debt to Total Assets Ratio
(m) Times Interest Earned Ratio

What additional information would you want in order to evaluate Dobson, Inc.?

Due Date: Sunday, April 7 @ 11 p.m. ET submit via WebTycho Assignment Folder
6

2

>Grade Summary

ssignment

Maximum

ate

Points

My Score Points

2 5

0

.00

3 5

– 0

inal Exam

100.00

4 5

– 0

5 5

– 0

s

0.00

0.00

6 6

– 0

7 5

– 0

8 8

– 0

9 8

– 0

8

– 0

– 0

– 0

100 0

– 0

– 0

– 0

I will also use the grade calculator to summarize your performance through the midter

– 0 – 0

ed

Weight Earned

Homework

& 14

– 0 Participation 0% 0.0% 0.00%

Ch 15 – 0 Midterm 0% 0.0% 0.00%

– 0 Final Exam 0% 0.0% 0.00%

– 0

– 0

0.00%

– 0

==> 0

Ch 20 – 0
Ch 21 – 0

Ch 22 – 0
Ch 23 – 0

Ch 24 – 0

Ch 26 – 0
Ch 25 – 0

Totals – 0 – 0
F 0.0%
D

C

A

Max

Points Points

Earned Homework Exams
M

C 4 0 A Maximum
1 5 Number D My Score Description Date
Ch 1

3 – 0 Midterm 0.00 10
Ch

14 F
Ch

15
Ch 1

6 Total 20
Ch 1

7
Ch 1

8
Ch 1

9
Ch 20
On time Ch

21
Ch

22
Ch

23
<== your score Ch

24
Ch

26
Ch

25
Grade Summary As Of
You do not need to do anything on this page because this is where I will calculate your exam scor

e. m. Totals April 4, 2009
Percent Weight
Percentage
Participation 0% 0.0% 0.00%
Ch

13
Ch

16
Ch

17
Ch

18 My Average ==>
Ch

19 My Letter Grade
60.0%
70.0%
B 80.0%
90.0%

Multiple Choice

Question Answer

1 D 21 C
2 A 22 B
3 C 23 D
4 D 24 D
5 D 25 A
6 B 26 C
7 C

A

8 A

B

9 D

C

10 A

D

D

C

A

D

13 C

C

14 D

D

15 A

D

16 B

D

17 A

D

18 C

C

19 C

D

20 B

A

0

Question Answer
27
28
29
30
11 31
12 32
33
34
35
36
37
38
39
40
Number Incorrect

&A

#1 & 2

Date

Account Title Amount

Account Title Amount

Account Title Amount

Stock

Account Title Amount

Distributable

Account Title Amount

Account Title Amount

Account Title Amount

Account Title Amount

Date Accounts Debit Credit

Adjustment – Available for Sale

Account Title Amount

Account Title Amount

Account Title Amount

Account Title Amount

Account Title Amount

Stock Dividends

Account Title Amount

Account Title Amount Stock Investments
Account Title Amount Treasury Stock
Account Title Amount

Problem #1
Accounts Debit Credit Choose from the account titles below (not all accounts will be used)
01/14/09 Account Title Amount Bonds Payable
Cash
Cash Dividends
Cash Dividends Payable
01/29/09 Common
Common

Stock Dividends
Discount on Bonds Payable
Dividend Revenue
07/01/09 Gain on Retirement of Bonds
Gain on Sale of

Stock Investments
Interest Expense
Interest Payable
Land
Loss on Retirement of Bonds
Problem #2 Loss on Sale of Stock Investments
Market
02/28/09 Market Adjustment – Trading
Organization Expense
Paid-in Capital from

Treasury Stock
06/30/09 Paid-in Capital in Excess of Par Value
Premium on Bonds Payable
Retained Earnings
08/31/09 Stock Investment Revenue
Unrealized Gain – Equity
Unrealized Gain – Income
Unrealized Loss – Equity
Unrealized Loss – Income

&A

#3

Total

Common

Date Accounts Debit Credit

Amount Amount

Account Title Amount Choose from the account titles below (not all accounts will be used)

Amount Amount

Account Title Amount Bonds Payable

Amount Amount Cash

Cash Dividends
Cash Dividends Payable
Discount on Bonds Payable
Dividend Revenue
Gain on Retirement of Bonds
Interest Expense
Interest Payable
Land
Loss on Retirement of Bonds
Loss on Sale of Stock Investments
Market Adjustment – Trading
Organization Expense
Paid-in Capital in Excess of Par Value
Premium on Bonds Payable
Retained Earnings
Stock Dividends
Stock Investment Revenue
Stock Investments
Treasury Stock
Unrealized Gain – Equity
Unrealized Gain – Income
Unrealized Loss – Equity
Unrealized Loss – Income
(a) Year Preferred (b)
2011 5,000 12/30/09
2012 15,000
2013 35,000
Common Stock
Common Stock Dividends Distributable
Gain on Sale of Stock Investments
Market Adjustment – Available for Sale
Paid-in Capital from Treasury Stock

&A

#4 & 5

Date Accounts Debit Credit

06/30/09 Account Title Amount Choose from the account titles below (not all accounts will be used)

Account Title Amount Bonds Payable
Account Title Amount Cash
Cash Dividends

Account Title Amount Cash Dividends Payable

Account Title Amount Common Stock

Account Title Amount Common Stock Dividends Distributable
Discount on Bonds Payable

Account Title Amount Dividend Revenue

Account Title Amount Gain on Retirement of Bonds

Gain on Sale of Stock Investments
Interest Expense
Interest Payable
Land

Loss on Retirement of Bonds

Date Accounts Debit Credit Loss on Sale of Stock Investments

Account Title Amount Market Adjustment – Available for Sale

Account Title Amount Market Adjustment – Trading

Account Title Amount Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par Value

Premium on Bonds Payable

Date Accounts Debit Credit Retained Earnings

Account Title Amount Stock Dividends

Account Title Amount Stock Investment Revenue
Account Title Amount Stock Investments
Account Title Amount Treasury Stock

Unrealized Gain – Equity
Unrealized Gain – Income
Unrealized Loss – Equity
Unrealized Loss – Income

Problem #4
12/14/09
01/14/10
Problem #5 (a)
12/31/08
Problem #5 (b)
06/29/09

&A

#6 & 7

Date Accounts Debit Credit

06/30/09 Account Title Amount Choose from the account titles below (not all accounts will be used)
Account Title Amount Bonds Payable
Cash

Account Title Amount Cash Dividends

Account Title Amount Cash Dividends Payable

Common Stock

08/31/09 Account Title Amount Common Stock Dividends Distributable
Account Title Amount Discount on Bonds Payable
Account Title Amount Dividend Revenue

Gain on Retirement of Bonds

Account Title Amount Gain on Sale of Stock Investments

Account Title Amount Interest Expense
Account Title Amount Interest Payable

Land

Loss on Retirement of Bonds

Date Accounts Debit Credit

Market Loss on Sale of Stock Investments

12/30/09 Account Title Amount

Market Adjustment – Available for Sale

Account Title Amount

Market Adjustment – Trading

Organization Expense

Paid-in Capital from Treasury Stock

Totals Paid-in Capital in Excess of Par Value

Date Accounts Debit Credit Premium on Bonds Payable
12/31/08 Account Title Amount Retained Earnings
Account Title Amount Stock Dividends

Stock Investment Revenue

Account Title Amount Stock Investments

Account Title Amount Treasury Stock
Unrealized Gain – Equity
12/30/09 Account Title Amount Unrealized Gain – Income
Account Title Amount Unrealized Loss – Equity

Unrealized Loss – Income

Problem #6 (a)
07/31/09
09/30/09
Problem #6 (b) Calculation for #6 (b)
Shares Cost
Carter
BOD
Williams
Problem #7
06/14/09

&A

#8

Amount

Item Amount

Item Amount
Item Amount
Item Amount
Item Amount
Item Amount

Item Amount

Total

Item Amount
Item Amount
Item Amount

Total

Item Amount
Item Amount
Item Amount

Total

Item Total

Item Amount
Item Total

Momma Corporation
Statement of Cash Flows
For the Year Ended December 31, 2013
Cash Flows from (for) Operating Activities
Item
Subtotal
Net Cash from (for) Operating Activities
Cash Flows from (for) Investing Activities
Net Cash from (for) Investing Activities
Cash Flows from (for) Financing Activities
Net Cash from (for) Financing Activities
Noncash Investing and Financing Activities (if any)

&A

#9

Amount

xx.xxx Amount

xx.xxx Amount

xx.xxx Amount

e.

Amount

xx.xxx Amount

xx.xxx% Amount

xx.xxx% Amount

Amount

xx.xxx Amount

xx.xxx% Amount

xx.xxx% Amount

m.

xx.xxx Amount

Ratio Sample Formatting Answers Computations
a. Current Ratio xx.xxx
b. Acid-test (quick ratio)
c. Receivables Turnover
d. Inventory Turnover
Profit Margin xx.xxx%
f. Asset Turnover
g. Return on Assets
h. Return on Common Stockholders’ Equity
i. Earnings per Share $ x.xx
j. Price-Earnings Ratio
k. Payout Ratio
l. Debt to Total Assets Ratio
Times Interest Earned Ratio
Note: I have already preformatted the cells in the Answers column for you, but you can use the sample formatting column as a guide in case you erase the formatting in the Answers column. Show your work in the Computations column. Write your response to the short-answer question anywhere on this spreadsheet.

&A

Still stressed with your coursework?
Get quality coursework help from an expert!