ACCOUNTING 281 TAKE-HOME MID-TERM
NAME: ______________________________________
1) LEONARD, ARTHUR & JULIUS FORMED THE "THREE BROTHERS
PARTNERSHIP. LEONARD INVESTED $250,000. ARTHUR INVESTED
$150,000 AND JULIUS INVESTED $100,000. LEONARD & ARTHUR
EACH WORKED 1/2 TIME & JULIUS WORKED FULL TIME.
IN 2017, THE PARTNERSHIP HAD NET INCOME OF $300,000.
REQUIRED: SHOW HOW THE $300,000 NET INCOME WOULD BE
DIVIDED UNDER EACH OF THE FOILLOWING PLANS:
A) EQUAL DISTRIBUTION
B) BASED ON INITIAL INVESTMENT
C) BASED ON TIME DEVOTED TO THE BUSINESS
D) BASED ON THE FOLLOWING PLAN"
10% RETURN ON INVESTMENT
SALARIES OF $75,000 TO LEONARD & ARTHUR &
$150,000 TO JULIUS
REMAINDER EQUALLY
TWO POINTS EXTRA CREDIT: WHO ARE THESE "THREE BROTHERS"? Leonard
$ 100,000.00
$ 150,000.00
$ 75,000.00
$
$ Arthur
$ 100,000.00
$ 90,000.00
$ 75,000.00 25,000.00 $
- $ Julius
$ 100,000.00
$ 60,000.00
$ 150,000.00 15,000.00 $
- $ 10,000.00
- The three brothers are unlimited partners in the partnership 2A) CAYO HUESO CORP. HAS 500.000 SHARES OF $10 PAR
VALUE STOCK AUTHORIZED AND 400,000 SHARES ISSUED
AND OUTSTANDING. THEY ALSO HAVE 100,000 SHARES
OF $20 PAR VALUE, $2 PREFERRED STOCK AUTHORIZED,
AND 80,000 SHARES ISSUED AND OUTSTANDING.
REQUIRED: JOURNALIZE THE FOLLOWING TRANSACTIONS:
2/1/20X1 SOLD $25,000 SHARES OF COMMON STOCK AT
$90 PER SHARE
4/1/20X1
SOLD 10,000 SHARES OF PREFERRED STOCK
AT $500 PER SHARE
6/1/20X1
REPURCHASED 15,000 SHARES OF COMMON STOCK
AT $100 PER SHARE
8/1/20X1
SOLD 5,000 SHARES OF THE STOCK REPURCHASED
ON 6/1 AT $120 PER SHARE
10/1/20X1 SOLD 5,000 SHARES OF THE STOCK REPURCHASED
ON 6/1 AT $90 PER SHARE
10/15/20X1 DECLARED DIVIDEND TO PAY THE PREFERRED
DIVIDEND AND $1 PER SHARE ON COMMON STOCK
11/15/20X1 THIS IS THE DATE OF RECORD
12/31/20X1 PAID THE CASH DIVIDEND DECLARED ON 10/15 DATE:
2/1/20X1 ACCOUNT:
COMMON STOCK
CASH
4/1/20X1
PREFERRED STOCK
CASH
6/1/20X1
COMMON STOCK
CASH
8/1/20X1
COMMON STOCK
CASH
10/1/20X1 COMMON STOCK
CASH
11/15/20X1 PREFERRED DIVIDEND
COMMON STOCK DIVIDEND
ACCOUNTS PAYABALE
12/31/20X1 PREFERRED DIVIDEND
COMMON STOCK DIVIDEND
CASH POST
REF: DEBIT:
2250000 CREDIT:
2250000 5000000
5000000
1500000
1500000
600000
600000
450000
450000
20000
20000
40000
20000
20000
40000 2B) PIRATE 40 INC. CURRENTLY HAS 200,000 SHARES OF $5 PAR VALUE
COMMON STOCK OUTSTANDING AND 20,000 SHARES OF $100 PAR
VALUE, 4%, CUMULATIVE PREFERRED STOCK OUTSTANDING.
THERE ARE NO DIVIDENDS OUTSTANDING AS OF 1/1/2016.
REQUIRED: SHOW HOW THE FOLLOWING DIVIDENDS ARE TO BE
DISTRIBUTED. USE THE "DIVIDENDS IN ARREARS" COLUMN
TO ENSURE MAXIMUM CREDIT. YEAR:
2016 TOTAL
DIVIDEND:
55,000 2017 70,000 2018 200,000 2019 35,000 2020 100,000 COMMON PREFERRED
DIVIDENDS
DIVIDEND:
DIVIDEND: IN ARREARS:
48,000
2,200
43,200
4,800
61,091
2,800
54,982
6,109
174,545
8,000
157,091
17,455
30,545
1,400
27,491
3,055
87,273
4,000
78,545
8,727 3) CHEWBACCA CHEWING GUM CO. WANTS TO RAISE CAPITAL BY SELLING BONDS.
THE BONDS WILL HAVE A TERM OF 10 YEARS, INTEREST OF 6% WILL BE PAYABLE
SEMI-ANNUALLY. THE FACE VALUE IOF THE BONDS IS $25,000,000.
REQUIRED: JOURNALIZE THE ISSUANCE OF THE BONDS, THE FIRST INTEREST PAYMENT
AND THE FINAL PAYMENT UNDER THE FOLLOWING SITUATIONS:
A) THE MARKET RATE OF INTEREST IN 6%.
B) THE MARKET RATE OF INTEREST IS 5%
C) THE MARKET RATE OF INTEREST IS 8%
DATE:
1/1/2XX1
1/1/2X11
1/1/2XX1
1/1/2X11
1/1/2XX1
1/1/2X11 ACCOUNT:
BOND ISSUANCE AT 6%
CASH
FINAL BOND PAYMENT
CASH
BOND ISSUANCE AT 5%
CASH
FINAL BOND PAYMENT
CASH
BOND ISSUANCE AT 8%
CASH
FINAL BOND PAYMENT
CASH REF:
$ DEBIT:
1,500,000.00 CREDIT:
$ 1,500,000.00 $ 19,771,192.41
$ 19,771,192.41
$ 1,250,000.00
$ 1,250,000.00 $ 15,722,365.67
$ 15,722,365.67
$ 2,000,000.00
$ 2,000,000.00 $ 28,973,124.93
$ 28,973,124.93 4) SIMPSON FAMILY, INC. PURCHASED $1,000.000 WORTH OF BURNS ENTERPRISES CO.
STOCK. BURNS ENTERPRISES REPORTS NET INCOME OF $400,000 FOR THE YEAR.
BURNS ENTERPRISES PAYS SIMPSON $12,000 IN DIVIDENDS.
REQUIRED: REPORT ALL NECESSARY TRANSACTIONS UNDER THE FOLLOWING SITUATIONS:
A) THE INVESTMENT IS GOING TO BE HELD FOR ONLY SIX MONTHS
B) THE INVESTMENT IS LONG-TERM AND REPRESENTS 15% OWNERSHIP
C) THE INVESTMENT IS LONG-TERM AND REPRESNETS 40% OWNERSHIP
DATE: ACCOUNT: REF: DEBIT: CREDIT: REQUIRED:
CALCULATE THE FOLLOWING RATIOS FOR 2016 TO ONE DECIMAL PLACE.
NOTE: SHOW YOUR CALCULATIONS TO ENSURE MAXIMUM CREDIT.
1) CURRENT RATION
2) QUICK RATIO
3) NUMBER OF DAYS SALES IN RECEIVABLES
4) INVENTORY TURNOVER
5) RATIO OF FIXED ASSETS TO LONG-TERM LIABILITIES
6) RATIO OF LIABILITIES TO STOCKHOLDERS' EQUITY
7) RATIO OF SALES TO ASSETS
8) RATE EARNED ON TOTAL ASSETS
9) RATE EARNED ON COMMON STOCKHOLDERS' EQUITY
10) EARNINGS PER SHARE OF COMMON STOCK
11) PRICE-EARNINGS RATIO
12) DIVIDENDS PER SHARE OF COMMON STOCK

 

• 1496291042-beth mid.xlsx

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Status NEW Posted 01 Jun 2017 04:06 AM My Price 20.00

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