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Midterm exam

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Question;1.(TCO D) The;basis for classifying assets as current or noncurrent is conversion;to cash;within (Points: 5)Question 2.;2. (TCO A) Why are some of the major differences between;iGAAP and U.S. GAAP? Explain in detail.;(Points: 25)Question 3.;3.(TCO C);Perry Corp. reports operating expenses in two categories: (1) selling and (2);general and administrative. The adjusted trial balance at December 31, 2010;included the following expense accounts.;Accounting;and legal fees;$140,000;Advertising;$120,000;Freight-out;$75,000;Interest;$60,000;Loss on;sale of long-term investments;$30,000;Officers;salaries;$180,000;Rent for;office space;$180,000;Sales;salaries and commissions;$110,000;One half of;the rented premises are occupied by the sales department.;How much of;the expenses listed above should be included in Perry's selling expenses for;2010? (Points: 15)395Question 4.;4. (TCO C) For the year ended December 31, 2010, Transformers Inc.;reported the following.;Net income $60,000;Preferred dividends declared $10,000;Common dividend declared$2,000;Unrealized holding loss, net of tax $1,000;Retained earnings, beginning balance;$80,000;Common stock $40,000;Accumulated Other Comprehensive Income, Beginning Balance $5,000;What would Transformers report as the ending balance of retained;earnings? (Points: 20)5.(TCO C) For the year ended;December 31, 2010, Transformers Inc. reported the following.;Net income;$60,000;Preferred dividends declared;$10,000;Common dividend declared;$2,000;Unrealized holding loss, net of tax, ? Available-For-Sale-Securities;$1,000;Retained earnings;$80,000;Common stock;$40,000;Accumulated Other Comprehensive Income, Beginning Balance;5,000;What would Transformers;report as its ending balance of accumulated other comprehensive;income? (Points: 20)Question 6.;6. (TCO B) Prepaid rent at 1/1/10 was $30,000. During 2010, rent;payments of $120,000 were made and charged to "rent expense." The;2010 income statement shows as a general expense the item "rent;expense" in the amount of $125,000. You are to prepare the missing;adjusting entry that must have been made, assuming reversing entries are not;made. Please indicate DR (debit) or CR (credit) to the left of the account;title, and place a comma between the account title and the amount of the;adjustment (Points: 10)Question 7.;7. (TCO B) Retained earnings at 1/1/10 was $170,000 and at 12/31/10 it;was $200,000. During 2010, cash dividends of $50,000 were paid and a stock;dividend of $40,000 was issued. Both dividends were properly charged to;retained earnings. You are to provide the missing closing entry. Please;indicate DR (debit) or CR (credit) to the left of the account title, and place;a comma between the account title and the amount of the adjustment. (Points;10);Question 8.;8. (TCO B) Retained earnings at 1/1/10 was $150,000 and at 12/31/10 it;was $200,000. During 2010, cash dividends of $50,000 were paid and a stock;dividend of $40,000 was issued. Both dividends were properly charged to;retained earnings. You are to provide the missing closing entry. Please;indicate DR (debit) or CR (credit) to the left of the account title, and place;a comma between the account title and the amount of the adjustment. (Points;10)Question 9.;9. (TCO B) Allowance for doubtful accounts on 1/1/10 was $60,000. The;balance in the allowance account on 12/31/10 after making the annual adjusting;entry was $55,000, and during 2010, bad debts written off amounted to $40,000.;You are to provide the missing adjusting entry. Please indicate DR (debit) or;CR (credit) to the left of the account title, and place a comma between the;account title and the amount of the adjustment. (Points: 10)

 

Paper#51199 | Written in 18-Jul-2015

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