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UMUC ACCT301 quiz 3 part 2




Question;Name;Date;YoumustcompletebothPart1(MAL)&Part2ofQuiz1;Question1;On February;14, Moran Company recorded sales of merchandise inventory on account, $55,000.;The sales were subject to Illinois? state sales tax of 7.5% On March 31, Moran;Company paid $2,100 of the sales tax to Illinois.;A.;Journalize;(without explanations) the transaction to record the sale on February 14.;Ignore cost of goods sold.;B.;Journalize;(without explanations) the transaction to record the payment of sales tax to;the state of Illinois.;(Record debits first, then credits);Question2;The Dalton Group borrowed money for the;purchase of new railcars by issuing $5,000,000 of 8.5% bonds payable at 97.5.;A.;How;much cash did the Dalton Group receive when the bonds were issued?;B.;Was;the bond issued at par, a discount, or a premium?;C.;How;much must the Dalton Group pay back at maturity?;D.;How;much cash interest will the Dalton Group pay each six months?;Question 3;Tombstone has the following income statement;Tombstone Laundry;Income Statement;Year Ended December;31,2013;Net Sales;$;25,000;Cost of Goods Sold;14,050;Gross Profit;10,950;Operating Expenses;4,215;Operating Income;6,735;Other Revenues and (Expenses);135;Income before Taxes;6,870;Income Tax Expense;1,374;Income from Continuing Operations;5,496;Discontinued Operations (less applicable tax);180;Net Income;5,676;Tombstone Laundry had 9,000 shares of;common stock outstanding during 2013. Tombstone Laundry declared and paid;preferred dividends of $500 during 2013. Show how Tombstone Laundry reports EPS;data on its 2013 income statement.;(Round the earnings per share amount to the nearest cent, $X.XX.);Question;4;A. Calculate;Tombstone Laundry?s cash ratio using the following balance sheet;(Round the cash ratio to three decimal places;X.XXX);B.;ComputedebttoequityratioatDecember 31, 2013;(Roundtheratiotoonetenthofapercent,X.X%.);C. Computethedebtratio at December 31, 2013;(Roundthe ratio to two;decimal places, X.XX);Tombstone;Laundry has the following balance sheet;Tombstone;Laundry;Balance Sheet;December 31, 2013;Assets;Current Assets;Cash;$ 6,000;3 month CD;$ 6,200;Accounts Receivable;6,300;Office Supplies;200;Total Current Assets;$ 18,700;Plant Assets;Furniture;$ 8,000;Less: Accumulated;Depreciation;(6000);2,000;Building;42,000;Less: Accumulated;Depreciation;(24000);18,000;Land;10,000;Total Plant assets;30,000;Total Assets;$ 48,700;Liabilities;Current Liabilities;Accounts Payable;$ 2,000;Salaries Payable;500;Unearned revenue;5,000;Total;Current Liabilities;$ 7,500;Long -term Liabilities;Notes Payable;7,000;Total Liabilities;$ 14,500;Owner's Equity;Earp Capital;12/31/13;$ 34,200;Total Liabilities;Owner?s Equity;$ 48,700;Question 5;In;order for an item to be reported in the extraordinary items section of the;income statement, it must be;A.;infrequent.;B.;unusual.;C.;unusual or infrequent.;D.;unusual and infrequent


Paper#48488 | Written in 18-Jul-2015

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