157.West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is:    A.Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. B.Debit Common Dividends Payable $95,000; credit Cash $95,000. C.Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000. D.Debit Common Dividends Payable $90,000; credit […]

  81) _____________ 82) Bob’s Appliances manufactures industrial Dryers and Washers. During February the following data are available:   DryersWashers Actual units sold 10,00040,000 Budgeted sales 8,82033,180 Actual selling price $700$900 Budgeted selling price         $710$930 Budgeted market share   25%24% Actual market share   20%19% Budgeted sales mix   51%49% Actual sales mix   49%51% Budget cont. margin /unit     […]

  21) Operating expenses–other than depreciation–for the year were $335,000. Prepaid expenses decreased by $7,000. Cash payments for operating expenses to be reported on the cash flow statement using the direct method would be: A) $335,000. B) $342,000. C) $328,000. D) $ 7,000. 22) Operating expenses–other than depreciation–for the year were $280,000. Prepaid expenses increased by $16,000. Cash payments for operating expenses to be reported […]

  184. 1. Identifying accounting principles. Indicate the accounting principle or method described in each of the following statements. Explain your reasoning. a. This inventory cost-flow assumption results in reporting the largest net income during periods of rising acquisition costs and nondecreasing inventory levels. b. This method of accounting for uncollectible accounts recognizes the implied income reduction in the period of sale. c. This method of […]

  11.A revenue account a. is increased with a debit. b. is not considered to be an item on the income statement. c. is reported on the balance sheet at the end of the accounting period. d. when offset with expenses ultimately leads to net income and an increase to retained earnings. 12.The declaration of dividends a. increases with a credit. b. decreases retained earnings. […]

143.In the rare instance when a par value stock is issued at a cash price below par, the excess of the par value over the amount of cash received should be   a. credited to the Retained Earnings account. b. debited to an account titled Discount on Capital Stock. c. credited to a liability account. d. debited to the Retained Earnings account.       […]

  11) R&R Heating, Inc. has 350,000 shares of $3-par common stock outstanding. They have declared a 5% stock dividend. The current market price of the common stock is $7.50/share. The amount that will be credited to common stock on the date of declaration is: A) $ 52,500. B) $131,250. C) $ 78,750. D) $183,750. 12) Valley Marine, Inc. has 200,000 shares of $5-par common […]

    41. Which of the following does not help explain why it is less expensive for groups versus individuals to purchase many benefits?  A. Groups can spread fixed costs over more people, thereby reducing the cost per person. B. Insurance risks are pooled in large groups. C. ERISA rules provide favorable tax treatment for large groups. D. Larger groups have greater bargaining power when negotiating over prices. ERISA does […]

    135. Balance sheet and income statement data indicate the following:  Bonds payable, 6% (issued 2000, due 2020) $1,200,000 Preferred 8% stock, $100 par     (no change during the year) 200,000 Common stock, $50 par     (no change during the year) 1,000,000 Income before income tax for year 340,000 Income tax for year 80,000 Common dividends paid 60,000 Preferred dividends paid 16,000   […]

  111. Yoho Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Assume a target income of 15% of average invested assets. Compute residual income for the division:  A. $150,450. B. $196,750. C. $150,500. D. $133,000. E. $100,300. 112. The following is taken from Ames Company’s internal records […]