Shares And Paid in Capital – Accounting & Finance Exam
The key terms in these Accounting include Shares, Common Stock, Paid in Capital, Perpetual Inventory, Net Income, Sales Discounts, Cost of Goods Sold, And Accounting & Finance.
A company issued 30,000 shares of $10 par common stock for $16 per share.
By how much will the Paid in Capital in Excess of Par account increase?
180,000
A company’s normal selling price for its product is $20 per unit. However, due to market competition, the selling price has fallen to $15 per unit. This company’s current inventory consists of 200 units purchased at $16 per unit. Replacement cost has fallen to $13 per unit. Calculate the value of this company’s inventory at the lower of cost or market.
$2,600. – Correct
$2,550.
$3,000.
$3,200.
$2,700.
Explanation
200 units @ $13 per unit = $2,600
Cushman Company had $846,000 in sales, sales discounts of $12,690, sales returns and allowances of $19,035, cost of goods sold of $401,850, and $291,025 in operating expenses. Net income equals:
$814,275.
$153,125.
$412,425.
$121,400. – Correct
$184,850.
Explanation
Net Income = $846,000 – $12,690 – $19,035 – $401,850 – $291,025 = $121,400
A company had the following revenues, expenses and dividends in its first three years of operations:
Year 1 | Year 2 | Year 3 | |
Revenues | $12,000 | $20,000 | $30,000 |
Expenses | $7,500 | $14,000 | $21,500 |
Dividends | $1,000 | $2,000 | $3,000 |
What is the balance in Retained Earnings at the end of the first year?
3,500
Marquis Company uses a weighted-average perpetual inventory system and has the following purchases and sales:
August 2 | 16 units were purchased at $7 per unit. |
August 18 | 21 units were purchased at $9 per unit. |
August 29 | 18 units were sold. |
What is the amount of the cost of goods sold for this sale? (Round average cost per unit to 2 decimal places.)
$130.00
$189.00
$301.00
$132.50
$146.52 – Correct
Explanation
Average cost = [(16 * $7) + (21 * $9)]/37 units = $8.14/unit
Cost of sale = 18 units * $8.14/unit = $146.52
A company issued 30,000 shares of $10 par common stock for $16 per share.
By how much will the Paid in Capital in Excess of Par account increase?
180,000
A company had the following revenues, expenses and dividends in its first three years of operations:
Year 1 | Year 2 | Year 3 | |
Revenues | $12,000 | $20,000 | $30,000 |
Expenses | $7,500 | $14,000 | $21,500 |
Dividends | $1,000 | $2,000 | $3,000 |
What is the balance in Retained Earnings at the end of the third year?
13,000
From E16-3, if Ms. Trevino accepts the $325,000, how much will it be worth in 5 years? Assume she earns a return of 8 percent per year and makes no withdrawals over the 5-year period.
477,532
Cushman Company had $846,000 in sales, sales discounts of $12,690, sales returns and allowances of $19,035, cost of goods sold of $401,850, and $291,025 in operating expenses. Net income equals:
$814,275.
$153,125.
$412,425.
$121,400. – Correct
$184,850.
Explanation
Net Income = $846,000 – $12,690 – $19,035 – $401,850 – $291,025 = $121,400
From E16-4, what is the maximum amount of cash the dean should be willing to pay for a copy machine?
64,427.5
A company issued 30,000 shares of $10 par common stock for $16 per share.
By how much will the Paid in Capital in Excess of Par account increase?
180,000