Exam part #2 –accounting majors only 1 hours from now

• Must be completed within specified time, maximum 1 hour

• You will have only ONE attempt to take this part.

C, D, and E are partners. C has $25,000 in her capital account. D has $35,000 in hers, and E has $45,000. Each gets a salary allowance of $15,000. C gets 10% interest on the beginning balance in the capital account, D gets 12%, and E gets 14%. The remainder is divided 20% to C, 35% to E, and 45% to E. What is the balance in the capital account at the end of the year if net income was $80,000?

 

 

 

Bonds issued at par – basic concepts

On April 1, Year 1, Olsen Products, Inc. issued at par $25 million of 10%, 10-year bonds payable. Interest is payable semiannually each April 1 and October 1.

(a) What is the amount of cash paid to bondholders for interest during Year 1?
$________________
(b) Give the adjusting entry necessary at December 31, Year 1 (if any), regarding this bond issue.
(c) Interest expense on this bond issue reported in Olsen Products’ Year 1 income statement is: $________________
(d) With respect to this bond issue, Olsen Products’ balance sheet at December 31, Year 1, includes bonds payable of $___________________ and interest payable of $________________ (indicate $0 or “none” if the item is not reported.
(e) Give the journal entry made by Olsen Products on April 1, Year 2, to record the semiannual payment of interest to bondholders.

 

 

 

Book value per share and other computations

Shown below is information relating to the stockholders’ equity of Silver Waste Management at December 31, 2015:

  

(a) Silver’s total legal capital at December 31, 2015, is $_______________.
(b) The total amount of Silver’s paid-in capital at December 31, 2015, is $_________________.
(c) The average issue price per share of Silver’s preferred stock was $_______.
(d) The book value per share of common stock is $__________ per share.
(e) The balance in Retained Earnings at the beginning of the year was $1,237,500, and net income for 2015 was $1,600,500. What was the amount of dividend declared on each share of common stock during 2015? $_______ per share.

 

 

 

Equity transactions-journal entries

A partial list of the ledger accounts of Soundview Corporation is shown below, followed by a list of transactions. Indicate the accounts that would be debited and credited in recording each transaction by placing the appropriate account number(s) in the space provided. If no journal entry is required for a particular transaction, use “None.”