Paper

ACC 3100 final exam practice question

QUESTIONS 1-9 pertain to the following:

Following are selected balance sheet accounts of Johanna Deleon Corp. at December 31, 2014 and 2013, and the increases or decreases in each account from 2013 to 2014. Also presented is selected income statement information for the year ended December 31, 2014, and additional information.

Increase

Selected balance sheet accounts 2014 2013 (Decrease)

Assets:

Accounts receivable $70,000 $94,000 ($24,000)

Inventory 80,000 70,000 10,000

Property, plant, and equipment 350,000 200,000 150,000

Accumulated depreciation (230,000) (200,000) (30,000)

Liabilities and stockholders’ equity:

Accounts payable 400,000 370,000 30,000

Dividends payable 15,000 25,000 (10,000)

Taxes payable 25,000 34,000 (9,000)

Deferred tax liability 10,000 13,000 (3,000)

Bonds payable 80,000 10,000 70,000

Common stock, $1 par 50,000 40,000 10,000

Additional paid-in capital 70,000 40,000 30,000

Retained earnings 250,000 190,000 60,000

Selected income statement information for the year ended December 31, 2014

Sales revenue $700,000

Cost of goods sold 100,000

Depreciation 40,000

Loss on sale of equipment 6,000

Tax expense 30,000

Net income 75,000

Additional information

-Accounts receivable relates to sales of merchandise.

-During 2014, equipment costing $60,000 was sold for cash.

-During 2014, $30,000 of bonds payable were issued in exchange for property plant, and

equipment. There was no amortization of bond discount or premium.

-During 2014, 10,000 shares of common stock...