Accounting 350
Quiz #3, Fall 2010
Name
1. Olmsted Company has the following items: common stock, $720,000; treasury stock,
$85,000; deferred taxes, $100,000 and retained earnings, $363,000. What total amount
should Olmsted Company report as stockholders' equity?
A) $898,000.
B) $998,000.
C) $1,098,000.
D) $1,198,000.
2. . Presented below are data for Antwerp Corp.
2010
Assets, January 1
$2,800
Liabilities, January 1
1,680
Stockholders' Equity, Jan. 1
?
Dividends
560
Common Stock
504
Stockholders' Equity, Dec. 31
?
Net Income
560
2011
$3,360
?
?
420
448
?
448
Stockholders' Equity at January 1, 2010 is
A) $ 504.
B) $ 560.
C) $1,120.
D) $1,624.
3. Lohmeyer Corporation reports:
Cash provided by operating activities
Cash used by investing activities
Cash provided by financing activities
Beginning cash balance
$250,000
110,000
140,000
70,000
What is Lohmeyer's ending cash balance?
A) $280,000.
B) $350,000.
C) $500,000.
D) $570,000.
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2012
?
$2,016
2,100
476
500
1,596
?
4. During 2010 the DLD Company had a net income of $50,000. In addition, selected
accounts showed the following changes:
Accounts Receivable
Accounts Payable
Building
Depreciation Expense
Bonds Payable
$3,000 increase
1,000 increase
4,000 decrease
1,500 increase
8,000 increase
What was the amount of cash provided by operating activities?
A) $49,500
B) $50,000
C) $51,500
D) $59,500
5. Stine Corp.'s trial balance reflected the following account balances at December 31,
2010:
Accounts receivable (net)
Trading securities
Accumulated depreciation on equipment and
furniture
Cash
Inventory
Equipment
Patent
Prepaid expenses
Land held for future business site
$24,000
6,000
15,000
11,000
30,000
25,000
4,000
2,000
18,000
In Stine's December 31, 2010 balance sheet, the current assets total is
A) $90,000.
B) $82,000.
C) $77,000.
D) $73,000.
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Use the following to answer questions 6-8:
The following trial balance of Reese Corp. at December 31, 2010 has been properly adjusted except for the
income tax expense adjustment.
Reese Corp.
Trial Balance
December 31, 2010
Dr.
Cr.
Cash
$ 775,000
Accounts receivable (net)
2,695,000
Inventory
2,085,000
Property, plant, and equipment (net)
7,366,000
Accounts payable and accrued liabilities
$ 1,701,000
Income taxes payable
654,000
Deferred income tax liability
85,000
Common stock
2,350,000
Additional paid-in capital
3,680,000
Retained earnings, 1/1/10
3,450,000
Net sales and other revenues
13,360,000
Costs and expenses
11,180,000
Income tax expenses
1,179,000
25,280,00
25,280,00
Other financial data for the year ended December 31, 2010:
• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000
The last payment is due December 29, 2012.
• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year
of which $20,000 is classified as a current liability.
• During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax
rate on all types of income is 30%.
In Reese's December 31, 2010 balance sheet,
6. The current assets total is
A) $6,080,000.
B) $5,555,000.
C) $5,405,000.
D) $4,955,000.
7. The current liabilities total is
A) $1,850,000.
B) $1,915,000.
C) $2,375,000.
D) $2,440,000.
8. The final retained earnings balance is
A) $4,451,000.
B) $4,536,000.
C) $4,976,000.
D) $4,905,000.
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9. Fulton Company owns the following investments:
Trading securities (fair value)
Available-for-sale securities (fair value)
Held-to-maturity securities (amortized cost)
$60,000
35,000
47,000
Fulton will report investments in its current assets section of
A) $0.
B) exactly $60,000.
C) $60,000 or an amount greater than $60,000, depending on the circumstances.
D) exactly $95,000.
10. For Grimmett Company, the following information is available:
Capitalized leases
Trademarks
Long-term receivables
$200,000
65,000
75,000
In Grimmett's balance sheet, intangible assets should be reported at
A) $65,000.
B) $75,000.
C) $265,000.
D) $275,000.
11. Houghton Company has the following items: common stock, $720,000; treasury stock,
$85,000; deferred taxes, $100,000 and retained earnings, $313,000. What total amount
should Houghton Company report as stockholders' equity?
A) $848,000.
B) $948,000.
C) $1,048,000.
D) $1,118,000.
12. Presented below are data for Caracas Corp.
Assets, January 1
Liabilities, January 1
Stockholders' Equity, Jan. 1
Dividends
Common Stock
Stockholders' Equity, Dec. 31
Net Income
2010
$3,800
2,280
?
760
684
?
760
Net income for 2012 is
A) $684 income.
B) $684 loss.
C) $38 income.
D) $38 loss.
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2011
$4,560
?
?
570
608
?
684
2012
?
$2,736
2,850
646
650
2,166
?
Answer Key
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
B
C
B
A
D
D
A
C
C
A
B
D
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