Intermediate Accounting Test 2

Topics: Balance sheet, Generally Accepted Accounting Principles, Accounts receivable Pages: 9 (1664 words) Published: October 4, 2012
Intermediate Accounting Test 2
The accountant of Weatherspoon Shoe Co. has compiled the following information from the company's records as a basis for an income statement for the year ended December 31, 2012. | Rental revenue| $29,000|

 | Interest expense| 18,000|
 | Market appreciation on land above cost| 31,000|
 | Wages and salaries-sales| 114,800|
 | Materials and supplies-sales| 17,600|
 | Income tax| 30,600|
 | Wages and salaries-administrative| 135,900|
 | Other administrative expenses| 51,700|
 | Cost of goods sold| 516,000|
 | Net sales| 980,000|
 | Depreciation on plant assets (70% selling, 30% administrative)| 65,000|  | Dividends declared| 16,000|
There were 20,000 shares of common stock outstanding during the year. (a)| Prepare a multiple-step income statement.|

(b)| Prepare a single-step income statement.|

Armstrong Corporation reported the following for 2012: net sales $1,200,000; cost of goods sold $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on available-for-sale securities $15,000. Prepare a statement of comprehensive income, using the two-income statement format. Ignore income taxes and earnings per share.

Presented below is information related to Dickinson Company for 2012.  | Retained earnings balance, January 1, 2012| $980,000|  | Sales for the year| 25,000,000|
 | Cost of goods sold| 16,000,000|
 | Interest revenue| 70,000|
 | Selling and administrative expenses| 4,700,000|
 | Write-off of goodwill (not tax deductible)| 820,000|  | Income taxes for 2012| 1,244,000|
 | Gain on the sale of investments (normal recurring)| 110,000|  | Loss due to flood damage–extraordinary item (net of tax)| 390,000|  | Loss on the disposition of the wholesale division (net of tax)| 440,000|  | Loss on operations of the wholesale division (net of tax)| 90,000|  | Dividends declared on common stock| 250,000|

 | Dividends declared on preferred stock| 80,000|
Prepare a multiple-step income statement and a retained earnings statement. Dickinson Company decided to discontinue its entire wholesale operations and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2012, there were 500,000 shares of common stock outstanding all year.

Presented below are the captions of Nikos Company's balance sheet. (a)| Current assets.| (f)| Current liabilities.|
(b)|  Investments.| (g)|  Non-current liabilities.|
(c)| Property, plant, and equipment.| (h)| Capital stock.| (d)| Intangible assets.| (i)| Additional paid-in capital.| (e)| Other assets.| (j)| Retained earnings.|
Indicate by letter where each of the following items would be classified. 1.| Preferred stock.|
2.| Goodwill.|
3.| Wages payable.|
4.| Trade accounts payable.|
5.| Buildings.|
6.| Trading securities.|
7.| Current portion of long-term debt.|
8.| Premium on bonds payable.|
9.| Allowance for doubtful accounts.|
10.| Accounts receivable.|
11.| Cash surrender value of life insurance.|
12.| Notes payable (due next year).|
13.| Office supplies.|
14.| Common stock.|
15.| Land.|
16.| Bond sinking fund.|
17.| Merchandise inventory.|
18.| Prepaid insurance.|
19.| Bonds payable.|
20.| Taxes payable.|

he major classifications of activities reported in the statement of cash flows are operating, investing, and financing. Classify each of the transactions listed below as: 1. Operating activity–add to net income.

2. Operating activity–deduct from net income.
3. Investing activity.
4. Financing activity.
5. Reported as significant noncash activity.
The transactions are as follows.
(a)| Issuance of capital stock.|
(b)| Purchase of land and building.|
(c)| Redemption of bonds.|
(d)| Sale of equipment.|...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Intermediate Accounting Essay
  • Financial Accounting Ch.2 Essay
  • Test Bank for Intermediate Accounting Essay
  • intermediate accounting chapter 2 Essay
  • Intermediate Accounting Chapter 2 Essay
  • Intermediate Accounting Essay
  • Essay on Accounting Test Questions
  • Accounting

Become a StudyMode Member

Sign Up - It's Free