Posted: September 16th, 2017
UMUC ACCT301 quiz 3 part 2
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Date: _
YoumustcompletebothPart1(MAL)&Part2ofQuiz1
Question1:
On February 14, Moran Company recorded sales of merchandise inventory on account, $55,000. The sales were subject to Illinois’ state sales tax of 7.5% On March 31, Moran Company paid ,100 of the sales tax to Illinois.
A. Journalize (without explanations) the transaction to record the sale on February 14. Ignore cost of goods sold.
B. Journalize (without explanations) the transaction to record the payment of sales tax to the state of Illinois.
(Record debits first, then credits)
Question2:
The Dalton Group borrowed money for the purchase of new railcars by issuing $5,000,000 of 8.5% bonds payable at 97.5.
A. How much cash did the Dalton Group receive when the bonds were issued?
B. Was the bond issued at par, a discount, or a premium?
C. How much must the Dalton Group pay back at maturity?
D. How much cash interest will the Dalton Group pay each six months?
Question 3:
| Tombstone has the following income statement | ||||||
| Tombstone Laundry | ||||||
| Income Statement | ||||||
| Year Ended December 31,2013 | ||||||
| Net Sales | $ | 25,000 | ||||
| Cost of Goods Sold | 14,050 | |||||
| Gross Profit | 10,950 | |||||
| Operating Expenses | 4,215 | |||||
| Operating Income | 6,735 | |||||
| Other Revenues and (Expenses) | 135 | |||||
| Income before Taxes | 6,870 | |||||
| Income Tax Expense | 1,374 | |||||
| Income from Continuing Operations | 5,496 | |||||
| Discontinued Operations (less applicable tax) | 180 | |||||
| Net Income | 5,676 | |||||
Tombstone Laundry had 9,000 shares of common stock outstanding during 2013. Tombstone Laundry declared and paid preferred dividends of $500 during 2013. Show how Tombstone Laundry reports EPS data on its 2013 income statement. (Round the earnings per share amount to the nearest cent, $X.XX.)
Question 4:
A. Calculate Tombstone Laundry’s cash ratio using the following balance sheet:
(Round the cash ratio to three decimal places, X.XXX)
B. ComputedebttoequityratioatDecember 31, 2013
(Roundtheratiotoonetenthofapercent,X.X%.)
C. Computethedebtratio at December 31, 2013
(Roundthe ratio to two decimal places, X.XX)
Tombstone Laundry has the following balance sheet:
| Tombstone Laundry | |||||||
| Balance Sheet | |||||||
| December 31, 2013 | |||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash | $ 6,000 | ||||||
| 3 month CD | $ 6,200 | ||||||
| Accounts Receivable | 6,300 | ||||||
| Office Supplies | 200 | ||||||
| Total Current Assets | $ 18,700 | ||||||
| Plant Assets: | |||||||
| Furniture | $ 8,000 | ||||||
| Less: Accumulated Depreciation | (6000) | 2,000 | |||||
| Building | 42,000 | ||||||
| Less: Accumulated Depreciation | (24000) | 18,000 | |||||
| Land | 10,000 | ||||||
| Total Plant assets | 30,000 | ||||||
| Total Assets | $ 48,700 | ||||||
| Liabilities | |||||||
| Current Liabilities | |||||||
| Accounts Payable | $ 2,000 | ||||||
| Salaries Payable | 500 | ||||||
| Unearned revenue | 5,000 | ||||||
| Total Current Liabilities | $ 7,500 | ||||||
| Long -term Liabilities | |||||||
| Notes Payable | 7,000 | ||||||
| Total Liabilities | $ 14,500 | ||||||
| Owner’s Equity | |||||||
| Earp Capital, 12/31/13 | $ 34,200 | ||||||
| Total Liabilities & Owner’s Equity | $ 48,700 | ||||||
Question 5:
In order for an item to be reported in the extraordinary items section of the income statement, it must be
A. infrequent.
B. unusual.
C. unusual or infrequent.
D. unusual and infrequent
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