(TCO A) Which of the following accounts is recorded as part of stockholders’ equity on the Balance Sheet?
(TCO B) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share?
(TCO C) Purchasing inventory is an example of a(n)
(TCO D) Dividends declared are reported on which of the following statements?
(TCO E) Which of the following describes the normal balance and classification of the Unearned Revenue account?
(TCO F) The accrual accounting term used to indicate recording an expense before paying cash for the item is
(TCO A) XYZ Company recorded the following events involving a recent merchandise purchase.
- Received goods for $50,000, terms 2/10, n/30.
- Returned $1,000 of the shipment for credit due to damaged goods.
- Paid $1,500 for freight-in.
- Paid the invoice within the discount period.
As a result of these events, the company's merchandise inventory
(TCO B) In periods of rising prices, which of the following inventory methods results in the highest gross profit figure?
(TCO A) Which of the following is not a current liability?
(TCO E) Which of the following is an internal control procedure?
(TCOs A and E) Your friend, Ellen, has hired you to evaluate the following internal control procedures.
Explain to your friend whether each of the numbered items below is an internal control strength or weakness. You must also state which internal control procedure relates to each of the internal controls.
For the weaknesses, you also need to state a recommendation for improvement.
(1) The cashier counts the total receipts and reconciles the receipts with the cash register total.
(2) Electronic documents are password-protected.
(3) The accountant is completely independent of the sales department.
(4) Invoices are not numbered.
(5) Large purchase orders must be approved by a manager.
(TCOs B and D) Please prepare the following journal entries. Indicate which account should be debited and which account should be credited, along with the dollar amount of the debit and credit.
(1) Investors invest $300,000 in exchange for 30,000 shares of common stock.
(2) Company made payment on account for $500.
(3) Employees work Monday through Friday and are paid on Friday. Salary expense is $20,000 per day, and December 31 falls on a Tuesday.
(4) Company purchased Supplies for $2,000.
(5) The company needs to record Supplies used for $500.
(TCOs B and D) The following items are taken from the financial statements of Ashe Company for 2012:
(TCO D) The following items are taken from the financial statements of BGS Company for 2012: