ACCOUNTING (MATH) PROBLEMS (FULLY SOLVED & UPDATED 2024)

The board of directors of capstone inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5000 shared held as treasury stock. what is the entry when the dividends are declared? a. dividends 9000 dividends payable 9000 b. dividends 9000 cash. 9000 c. dividends. 12,000 dividends payable . 12,000 d. dividends 12,000 cash . 12,000 a. dividends 9000 dividends payable 900 dividends (20,000-5000) x .60= . 9000 dividends payable 9000 outstanding = issue- treasury stocl On Jan 1, 2018, stoops entertainment purchase a building for by borrowing $340,00, signing a 9%, 10-year mortgage. Installment payment of $4,306.98 are due at the end of each month, with the first payment due on Jan 31, 2018. Record the first monthly mortgage payment of Jan 31 ,2018. A. debit interest expense $2550 B. debit cash $4306.98 C. credit notes payable 1756.98 D. credit interest expense $2550 debit interest expense; $2550 ($340,000 x 9% x 1/12) = $2550 First monthly payment, $2550 goes to interest expense and only $1,756.98 goes reducing the carrying value of the loan. 6 Ways to Show Appreciation for Your Child's Teacher 0:01 / 0:54 During the first two years, supplies. INC drove the truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its customers. The company originally purchased the truck for $175,000. If the truck has an estimated life of 10 years or 300,000 miles, with an estimated residual value of $25,000, which amount of depreciation expense should supplies, Inc. record in the second year using the ACTIVITY- BASED method? 11,000 (175,000)- ($25,000)/300,000 miles= .50 per mile x 22,000 miles Capital Construction purchased a 3‐acre tract of land for a building site for $350,000. The company demolished the old building at a cost of $12,000, but was able to sell scrap from the building for $1,500. The cost of title insurance was $900 and attorney fees for reviewing the contract was $500. Property taxes paid were $3,000, of which $250 covered the period after the purchase date. The capitalized cost of the land is: A. $366,400 B. $366,150 C. $364,650 D. $231,150 $364,650 Purchase price: $350,000 demolition : $12,000 scrap sold: ( 1,500) title insurance: 900 legal fees : 500 property taxes: ( 3000-250)= 2750 TOTAL: 364,650 Schager Company purchased a computer system on January 1, 2012, at a cost of $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000. Assuming the company will use the double-declining-balance method, what is the depreciation expense for the second year? $8,000. $7,000. $5,600. $6,400. 6400 40,000x 20% =8000 ( depreciation in the first year) (40,000-8000) X20% =6400 ( depreciation in the second year On January 1, 2013, Jacob Inc. purchased a commercial truck for $48,000 and use the straight-line depreciation method. The truck has a useful life of 8 years and an estimated residual value of $8000. On December 31, 2015, Jacob Inc. sold the truck for $30,000. what amount of gain or loss should Jacob Inc. record on Dec 31, 2015? loss: 3000 (48,000-8000)/8= $5000 per year ( depreciation. [48,000)-5,000 x 3 years)]= 33,000.... truck was sold for $30,000... $3000 loss below book value Rachel's recordings reported a net income of $200,000. Beginning balance in Accounts receivable and Accounts payable were $15,000 and $20,000, respectively. The ending balance in these accounts was $12,000 and $22,000, respectively. Assuming that all relevant information has been presented. Rachel's cash flow from operating activities would be. Net income: $200,000 add decrease in A/R : $3000 add increase in A/P: $2000 = 205,000 South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What is true about the journal entry to record the issuance? a. Debit Common Stock $10,000 b. Credit Cash $50,000 c. Credit Common Stock $50,000 d. Credit Additional Paid‐In Capital $40,000 Credit additional paid-in capital $40,000 cash 50,000 common stock . 10,000 additional paid-in capital 40,000 On Nov 1, 2012. The Bagel Factory signed a $100,000, 6%, six month note payable with the amount borrowed plus accrued interest due six months later on May 1, 2013. The bagel factory should report interest payable at Dec 31, 2012, in the amount of. $1000 (100,000 x 6%) x 2/12 = 1,000 On Dec 2, coley corp. reacquired 1000 shares of its $2 par value common stock for $27 each. On Dec 20, Coley Corp. reissued 400 shares for $15 each. Which of the following is correct regarding the journal entry for the reissued shares? credit treasury stock $10,800 cash (400 X $15)= 6000 additional paid-in capital 4800 treasury stock (400 x 27) 10,800 trouble accessories has the following current asset: cash 1,200: receivable 1,500 inventory $2300 and current assets $1300. Airline accessories has the following liabitilies: account payable , $1000 million: current portion of long-term debt, $3000: and long-term debt, $1800. Base on these amount, calculate the current ratio and working capital for Trouble accessories 1.5 and $2000 the current portion of a long-term liability is classified as current and the remaining as long-term liability.