Supplemental Instruction
Iowa State University / Leader: / Ben
Course: / ACCT 284
Instructor: / Duffy
Date: / 12/2/15
Stockholders’ Equity / Before / 2 – 1 Stock Split / 100% Stock Dividend / $10,000 Cash Dividend
Shares Outstanding / 1,000,000
Par Value / .01
Common Stock / 10,000
Additional Paid in Capital / 30,000
Retained Earnings / 650,000
Total Equity / 690,000

Fill out the table using the following information.

Preferred Stock Outstanding: 6%, par $20, 2,000 shares

Common Stock Outstanding: par $10, 5,000 shares

Year / Total Dividend Declared / Dividends on 10% Preferred Stock / Dividends on Common Stock
2015 / $8,000
2016 / $10,000

A company purchased stock (treasury stock) at $25 per share. If the company issues these shares for $28, what would the journal entry be?

$22?

A company sells $100,000 bonds at 97. The stated interest rate is 4% and the market rate is 5%. The bond is for 5 years. Prepare the amortization schedule below.

Year / Interest Expense / Cash Paid / Discount Amortized / Discount Balance / Carrying Value
0
1
2
3
4
5
  1. The acquisition cost of an asset less accumulated depreciation describes:
  2. Depreciable cost
  3. Gain or loss on sale of an asset
  4. Net assets
  5. Book value
  6. Which of the following statements regarding the allowance method is not correct?
  7. It reduces the net amount reported for Accounts Receivable on the balance sheet
  8. It records an estimate of Bad Debt Expense for the accounting period
  9. It removes specific customer balances in an end-of-period adjusting journal entry
  10. It reduces the amount of net income reported on the income statement
  11. Which of the following correctly depicts the cost of goods sold equation?
  12. BI + P – EI = COGS
  13. BI – P + EI = COGS
  14. EI + P – EI = COGS
  15. EI – P + EI = COGS
  16. Which of the following internal control principles underlies the requirement that each task should be assigned to only one employee?
  17. Segregate duties
  18. Establish responsibility
  19. Restrict access
  20. Document procedures
  21. Which of the following is not part of the fraud triangle?
  22. Opportunity to commit fraud
  23. Effective internal controls
  24. Incentive to commit fraud
  25. Character to rationalize and conceal fraud
  26. On February 1, 2010, Gargles Inc. borrowed $10,000 and signed a note that promised repayment in one year. During February and March, 2010, Gergles incurred $150 of interest on this loan. No adjustments have been recorded relating to this interest. The related adjusting journal entry will include a :
  27. Debit to interest expense for $150
  28. Debit to interest expense for $10,000
  29. Credit to interest expense for $150
  30. Credit to interest expense for $10,000
  31. Which of the following situations would require a debit to cash and a credit to Unearned Revenue?
  32. Cash is received after the company delivers goods/services
  33. Cash is received before the company delivers goods/services
  34. Cash is received in the same period that the company delivers goods/services
  35. The company has earned revenue that was previously unearned