SOLUTION
Short-questions:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Financial accounting
Primary
Asset
Received
Posting
General ledger
Preference dividends
Increases
Free cash flow
Net income
Multiple Choice
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
B
D
C
A
B
D
C
A
D
C
Essays:
1.
Interest expense
Interest payable
300
Account receivable
Service revenue
5,400
Salaries and wages expense
Salaries and wages payable
700
Bad debt expense
Allowance for doubtful accounts
900
300
5,400
700
900
2.
WEBSTER COMPANY
INCOME STATEMENT
FOR THE YEAR ENDEDDECEMBER 31, 2015
Sales revenue
Cost of good sold
Gross profit
Selling expenses
Delivery expense
Sales commissions
Depreciations of sales equipment
Administrative expense
Officers’ salaries
Depreciation of office furniture and equipment
Other income and expenses
Rent revenue
Income from operations
Interest expense
Income before income tax
Income tax
Net income for the year
Earnings per share
96,500
63,570
32,930
2,690
7,980
6,480
17,150
4,900
3,960
8,860
(26,010)
17,230
24,150
1,860
22,290
7,580
14,710
0,36
3.
VIVALDI CORPORATION
STATEMENT OF FINANCIAL POSITION
DECEMBER 31, 2015
Assets
Non-Current Assets
Long-term investments in bonds
Long-term investments in shares
Property, plant, and equipment
Land
Buildings
Less: Accumulated depreciation - Buildings
Equipment
Less: Accumulated depreciation – Equipment
Intangible Assets
Franchises
Patents
Total non-current assets
Current Assets
Cash
Trading Securities
Inventory
Account receivable
Less: Allowance for doubtfull accounts
Total Current Assets
Total assets
299,000
277,000
576,000
260,000
1,040,000
352,000
600,000
60,000
688,000
540,000
160,000
195,000
1,488,000
355,000
2,419,000
197,000
153,000
597,000
435,000
25,000
410,000
1,357,000
3,776,000
Equity and Liabilities
Equity
Share capital
Retained earnings
Accumulated other comprehensive income
Less: Treasury shares
Total equity
Non-current liabilities
Pension liability (long-term)
Notes payable (long-term)
Total non-curret liabilities
Current liabilities
Notes payable
Accounts payable
Dividends payable
Accrued liabilities
Bonds payable
Total current liabilities
Total liabilities
Total equity and liabilities
1,000,000
130,000
80,000
191,000
1,019,000
80,000
900,000
980,000
90,000
455,000
136,000
96,000
1,000,000
1,777,000
2,757,000
3,776,000