Accounting 221 Final Exam

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Question 1: 30% points

a. General Journal Entries:

Date | Account | Debit | Credit |

Jan 01 | Cash dividends ((100,000x15)x0.05) | 75,000 | |

| Common stock dividends distributable | | 75,000 |

Jan 31 | Common stock dividends distributable | 75,000 | |

| Common stock ((100,000x10)x0.05) | | 50,000 |

| Additional paid-in capital (75,000-50,000) | | 25,000 |

Feb 15 | Treasury stock (1,000x20) | 20,000 | |

| Cash | | 20,000 |

Mar 31 | Cash (250x25) | 6,250 | |

| Treasury stock (250x20) | | 5,000 |

| Paid-in capital – Treasury stock transactions (6,250-5,000) | | 1,250 |

Jul 01 | Cash (500x16) | 8,000 | |

| Paid-in capital – Treasury stock transactions (10,000-8,000) | 2,000 | |

| Treasury stock (500x20) | | 10,000 |

Oct 01 | Retained earnings Preferred stock ((10,000x100)x0.05) | 50,000 | |

| Dividends payable | | 50,000 |

Oct 01 | Retained earnings Common stock (100,000x1.50) | 150,000 | |

| Dividends payable | | 150,000 |

Oct 15 | Dividends payable Preferred stock | 50,000 | |

| Cash | | 50,000 |

Oct 15 | Dividends payable Common stock | 150,000 | |

| Cash | | 150,000 |

Dec 15 | Common stock - $10 par value | 1,000,000 | |

| Common stock - $5 par value | | 1,000,000 |

2014 | Income summary | 425,000 | |

| Retained earnings | | 425,000 |

Answer.Sheet.Page.1.of.6.Sp.15 Final-Exam

b. Partial Classified Balance Sheet:

Flip Corporation |

Balance Sheet (partial) |

December 31, 2014 |

Stockholders’ equity: | | |

Paid-in capital: | | |

Preferred stock – 5%, par value $100; 10,000 shares issued and outstanding | 1,000,000 | |

Common stock - $10 par value; 100,000 shares issued and outstanding | 1,000,000 | |

Paid-in capital in excess of par, Common | 150,000 | |

Total paid in capital | | 2,150,000 |...