财务会计英语试题3

FINANCIAL ACCOUNTING编号成绩true or fault1.R ussll'Retail bought goods at $10000 which are marked up to $12500.What was the gross profit rate?a) $25% b)20% c)12.5% d)15%2.G ooden Company purchased and began depreciating a new truck on April 1,1999.The truck cost $60000,has a five-year service life, and a $12000 residual value. Assuming use of the double-declining method, what is the 1999 depreciation expense?a) $13440 b)$14400 c)$16800 d)$180003.A Co. purchased $8000 of merchandise on July 9 from B Co., FOB shipping point, term 2/10,n/30. Freight charges of $200 were paid by B Co. If A Co. settled the transaction on July 17, the company would pay:a)$7840 b)8040 c)8036 d)82004.Extraordinary items are:a)d isclosed on the statement of retained earnings.b)disclosed as part of income from continuing operationsc)unusual or infrequent in natured)unusual and infrequent in nature5.Accumulated depreciation, as the term is used on financial accounting represents:a)cash set aside to replace plant assets when they are worn outb)earnings retained in the business that will be used to purchase another plant asset when thepresent asset becomes fully depreciatedc) the portion of the cost of an asset that has been written off as expense since acquisitiond)an expense to be shown on the income statementing the data presented below, calculate the cost of goods sold for the ABC Company for 1999.Current ratio 3.5Acid ratio 3Current liabilities 12/31/1999 $600000Inventory 12/31/1998 $500000Inventory turnover 8The cost of goods sold for the ABC Company of 1999 was:a)$1600000 b)$2400000 c)$3200000 d)$64000007.Which of the following transactions would result in an increase in the current ratio if the ratio is presently 2:1?a)r epaid a 90-day loanb)purchased merchandise on accountc)liquidated a long-term liabilityd)received payment of an accounts receivablee)none of the above8.An aging schedule indicated that M Co. had $12500 of uncollectible accounts. Yet, the adjusting entry for bad debts expense was prepared for only $6000. This situation arose because:a)T here was a $6500 debit balance in the Allowance for Bad Debts account prior to adjustment.b) There was a $6500 credit balance in the Allowance for Bad Debts account prior to adjustment.c) The Bad Debts expense account had an existing balance of $6500d) $6500 of uncollectible accounts were written off during the accounting period.9.The LIFO inventory valuation method:a)i s acceptable only if a company sells its newest goods first.b)will result in higher income levels than FIFO in periods of rising prices.c)will result in a match of fairly current inventory cost against recent selling prices on the income statement.d)cannot be used with a periodic inventory system .10.Four years ago, Harrison company invested $500,000,acquired 25% interest equity in M Co. During the next 3 years, M Co. reported earnings of $300,000 and paid dividends of $200,000. In the current year, M Co. reported earnings of $30,000 and paid dividends of $10,000. If Harrison use the equity method, the balance of the investment account and the current income from the investment should be respectively:a) $582,500 and $7500b)$530,000 and $7500c)$530,000 and $2500d)$500000 and $2500Bonds Transactions(15%):ABC company sold $800,000 of its 9%, 20 years bonds on April 1,1999, at 105. The semi-annual interest payment dates are April 1 and October 1.The effective interest rate is 8%. The company fiscal year ends Dec.31. Requirements:Prepare journal entries to record:1.T he bond issuance on April.1, 1999.2.T he first interest payment and amortization of premium on Oct.1(using effective interest method)3.T he amortization of premium and interest expense on Dec.31,1999.(using straight-line method).XYZ Co. was formed on Jan.1999. The company is authorized to issue 100000 shares of $20 par-value common stock and 30000 shares of 6%, $10 par-value preferred stock. The following selected transactions occurred during the year(15%):1.I ssued 80000 shares of common stock at $35 per share.2.I ssued 14000 shares of preferred stock at $12 per share.3.R equired 5000 shares of treasury stock for $40 per share.4.S old 500 shares of treasury stock at $25 per share.5.D eclared cash dividend for $15000.Requirement:Make journal entries based on the information given above(compute the cash dividend for common stock and preferred stock respectively)Statement of cash flow(30%)Paper 1 Accounting ReportsInformation One：Colwell CorporationIncome StatementFor 2003Sales $ 3,000,000Cost of goods sold 1,200,000$ 1,800,000ExpensesSelling &administrative $ 1,455,000Building depreciation 25,000Equipment depreciation 70,000 $ 1,550,000$ 250,000Other revenue (expense)Interest expense $ (200,000)Loss on sale of equipment (5,000)Gains on sale of L-T investment 15,000 (190,000 )Income before income taxes $ 60,000Income taxes 20,000Net income $ 40,000Information Two：Statement of Retained earningFor 2003Retained earnings, 1/1/2003 $ 450,000Add: Net income 40,000$ 490,000Less: Cash dividends 15,000Retained earnings,12/31/2003 $ 475,000Information Three：Colwell CorporationComparative Balance SheetDec.31,2002 and 2003Assets 2003 2002Current assetsCash $ 100,000 $ 50,000Accounts receivable (net) 400,000 375,000Inventory 425,000 450,000Prepaid selling expenses 5,000 4,000Total current assets $ 930,000 $ 879,000Property, plant & equipmentLand $ 200,000 $ 115,000Building 1,450,000 1,250,000Accumulated depreciation: building (50,000) (25,000)Equipment 725,000 800,000Accumulated depreciation: equipment (250,000) (260,000)Total property, plant & equipment $2,075,000 $ 1,880,000Other assetsL--T investment $ 880,000 $ 1,000,000Total assets $ 3,885,000 $ 3,759,000Liabilities & Stockholders' EquityCurrent liabilitiesAccounts payable $ 470,000 $ 340,000Notes payable --- 300,000Income taxes payable 40,000 39,000Total current liabilities $ 510,000 $ 679,000L-T liabilitiesBonds payable $ 2,070,000 $ 2,000,000Stockholders' equityCommon stock, par value $ 1 $ 195,000 $ 130,000Paid-in capital in excess of par 635,000 500,000Retained earnings 475,000 450,000Total stockholders' equity $ 1,305,000 $ 1,080,000Total liabilities &stockholders' equity $ 3,885,000 $ 3,759,000Additional Information extracted from Colwell's accounting records:1.A parcel of land which cost $85,000 was purchased for cash on Oct.19.2.A building having a fair market value of $200,000 was acquired on the last day of the year inexchange for 65,000 shares of the company's $1 par-value common stock.3.Equipment of $100,000 was disposed of for cash on May 1.4.E quipment of $25,000 was purchased on Nov.1.5.T he notes payable relate to money borrowed from First Pacific Trust in late 1998.6.$120,000 of long-term investments was sold for $135,000, generated a gain of $15,000.7.B onds of $70,000 were issued at face value on Feb.14.Requirements:Prepare the Statement of Cash Flow in good form for Colwell Corporation under indirect approach.。