accounting test asap needed

ZnepvnQ
timer Asked: Feb 14th, 2015

Question Description

questions don't know.docx


Unformatted Attachment Preview

Chaney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. The journal entry for this transaction would: a. credit Cash $600,000, debit Common stock $20,000, and debit Paid-in capital $580,000. b. debit Cash $600,000 and credit Paid-in capital $600,000. c. debit Cash $600,000, credit Common stock $20,000, and credit Paid-in capital $580,000. d. debit Cash $600,000 and credit Common stock $600,000. Peterson Company issued 4,000 shares of preferred stock for $240,000. The stock has a par value of $60 per share. The journal entry to record this transaction would: a. credit Cash $240,000, debit Common stock $4,000, and debit Paid-in capital $236,000. b. debit Cash $240,000, credit Common stock $4,000, and credit Paid-in capital $236,000. c. credit Cash $240,000 and debit Preferred stock $240,000. d. debit Cash $240,000 and credit Preferred stock $240,000. Lerner Company had the following transactions in 2013, its first year of operations. • Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00per share. • Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par. • Earned net income of $35,000. • Paid no dividends. At the end of 2013, what is the total amount of Stockholders' equity? a. $415,000 b. $120,000 c. $260,000 d. $380,000 Lerner Company had the following transactions in 2013, its first year of operations. • Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00per share. • Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par. • Earned net income of $35,000. • Paid no dividends. At the end of 2013, what is the total amount of Paid-in capital? a. $415,000 b. $120,000 c. $280,000 d. $380,000 Notebook Company had the following transactions in 2013, its first year of operations. • Issued 2,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $50.00per share. • Issued 100 shares of $100 par value preferred stock. Shares were issued at par. • Earned net income of $95,000. • Paid dividends of $5,000. At the end of 2013, how much was the total Stockholders' equity? a. $200,000 b. $110,000 c. $90,000 d. $100,000 Ajax Company was founded in 2012. Its yearly earnings are shown here: 2012: Net income of $4,000 2013: Net income of $23,000 2014: Net income of $2,000 2015: Net loss of $30,000 No dividends were paid. At the end of the year 2015, what amount would be shown on the balance sheet for Retained earnings? a. Negative $1,000 b. Positive $29,000 c. Positive $31,000 d. Negative $30,000 Beta Company was founded in 20013. Its yearly earnings and dividend payments are shown here: 2013: Net income of $4,000, paid zero dividends 2014: Net income of $20,000, paid $10,000 dividends 2015: Net income of $8,000, paid $5,000 dividends 2016: Net loss of $22,000, paid zero dividends At the end of 2016, what would be the balance in Retained earnings? a. Negative $22,000 b. . Positive $32,000 c. Negative $5,000 d. Positive $1,000 B. Jones and R. Tate began a partnership in 2012. Jones would do a larger portion of the partnership work, and Tate would make a larger cash contribution, and so the partnership agreement specified a profit split to recognize that situation. Profits will be split in a two step allocation. The first step will allocate partnership profits based on 5% of each partner’s capital balance. The second step will allocate remaining amounts in a ratio of 4:1. Data at the end of the first year are as follows: Partnership profits to allocate: $ 24,000 Jones’s capital balance: $ 36,000 Tate’s capital balance: $120,000 At the end of the year, what will Tates’s updated capital account balance be? a. $129,240 b. $126,000 c. $123,240 d. $132,960 On January 1, the partnership of Clark, Lipton, and Onassis had capital account balances as shown here: Clark, capital 109,000 Lipton, capital 88,000 Onassis, capital 76,000 On the same date, Arthur Brolin offered to purchase Lipton’s partnership interest directly from him for $120,000, and Lipton agreed. New partnership papers were drawn up and the partnership made a journal entry. What journal entry was made? a. Debit Cash $120,000; credit Brolin, capital $120,000 b. Debit Lipton, capital for $88,000; debit Cash $32,000; credit Brolin, capital $120,00 c. Debit Lipton, capital for $88,000; credit Brolin, capital $88,0 d. Debit Lipton, capital $120,000; credit Brolin, capital $120,000 On June 1, the partnership of Clark, Lipton, and Onassis had capital account balances as shown here: Clark, capital 102,000 Lipton, capital 102,000 Onassis, capital 102,000 On the same date, Betty Morales made an offer to buy in to the partnership at book value. Morales will pay cash for her partnership interest. Assume that at the date of transaction, there are no balances in the partners’ drawing accounts'. If the partners accept, what journal entry would be made by the partnership? a. Debit Cash $102,000; credit Morales, capital $102,000 b. Debit Clark, capital $102,000; credit Morales, capital $102,000 c. Debit Cash $102,000; credit Clark, capital $34,000; credit Lipton, capital $34,000; credit Onassis, capital $34,000 d. Debit Clark, capital $34,000; debit Lipton, capital $34,000; debit Onassis, capital $34,000; credit Morales, capital $102,000 1 points Frank Evans and Barbara Baker have a partnership which splits profits equally, and which has become very successful. They are considering admitting a new partner, Pete Zhang, for an equal share—a 1/3 interest in the new partnership. Based on the value of the partnership’s business, they have negotiated an amount of $118,000 which Zhang will invest to obtain a 1/3 share. The balances in the existing partner capital accounts are: Evans $60,000 Baker $62,000 After admission to the partnership, what would be the initial balance in Zhang’s capital account? a. $118,000 b. $ 59,000 c. $ 80,000 d. $ 66,000 G. Allman, M. Jagger, and G. Harrison had a partnership which shared profits equally. At the end of 2012, Harrison announced his intention to retire and withdraw from the partnership. Assets were revalued, and the capital accounts were adjusted. After adjustments, the balance sheet appeared as follows: Assets Cash Inventory Land $ 55,000 33,000 101,000 Total assets $189,000 Liabilities & Owners’ Equity Accounts payable $ 22,000 Allman, capital 69,000 Jagger, capital 56,000 Harrison, capital 42,000 Total liabilities & owners’ equity $189,000 It was agreed that Harrison would take a cash payment for withdrawal at book value. How much cash did the partnership pay Harrison? a. $42,000 b. $63,000 c. $55,000 d. $55,667
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Related Tags

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors