Acct 221 Principles of Accounting Ii Final Exam Answers

ACCT 221 Principles of Accounting II Final Exam Answers

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ACCT 221 Principles of Accounting II Final Exam Answers

Part A.

On January 1, 2014, Flip Corporation had 560,000 shares of $1 par value common stock issued and outstanding. There was a $3,000,000 balance in the Retained Earnings account at the beginning of the year. During the first quarter of the year, the following transactions occurred:

Jan. 8 Issued 40,000 shares of its own common stock for $400,000.

Jan. 18 Declared a cash dividend of $1 per share to stockholders of record on Jan. 10.

Jan. 31 Paid the $1 cash dividend declared on Jan. 18.

Feb. 2 Purchased 3,000 shares of its own common stock for the treasury at $11 per share.

Feb. 14 Sold 2,000 shares of the treasury stock purchased on Feb. 2 for $12 per share.

March 25 Declared a 2 for 1 stock split on outstanding shares.

Instructions

Prepare journal entries to record the above transactions.

Part B.

The following information is available for Flip Corporation for the year ended December 31, 2014:

Beginning retained earnings $ 340,000

Cost of goods sold 620,000

Declared cash dividends 50,000

Operating expenses 170,000

Other expenses and losses 40,000

Other revenues and gains 60,000

Sales 1,000,000

Tax rate 30%

Instructions:

1....