Acct212 Final Exam Questions With 100% Correct Answers

Acct212 Final Exam Questions With 100% Correct Answers Clothing frontier engages in the following transactions -Jan 1 - issues 600 shares of common stock for $40 a share -April 1 - Issues 100 additional of common stock for $44 a share Record the transactions assuming clothing frontiers has NO-PAR value common stock - answerJan 1. Cash............. 24,000 .......Common Stock..........24,000 April 1. Cash. 4,400 ......Common stock 4,400 Clothing frontier engages in the following transactions -Jan 1 - issues 600 shares of common stock for $40 a share -April 1 - Issues 100 additional of common stock for $44 a share Record the transactions assuming clothing frontiers has $1 value common stock - answerJan 1. Cash 24,000 ........Common stock 600 ........APIC. 23,400 April 1. Cash 4,400 .........common stock 100 .........APIC. 4,300 Treasury stock - answer1. Must be corporations own stock 2. Must be issued to the stockholders at some point 3. Must be repurchased from stock holders 4. Must not be retired, but must be held for some purpose. No voting rights or rights to dividends Three important dates for Cash Dividends - answer1. Date of declaration 2. Record Date 3.Payment Date Cash dividend Date of declaration journal entry - answerDividends .......Dividends payable Cash Dividend Record Date journal entry - answerNo JE Cash Dividend Payment Date Journal entry - answerDividends payable .........Cash Stock Dividend Date of Declaration and distribution JE - answerRetained Earnings (Market Value * # of shares issued in dividend) Common Stock (Stock Dividend(%) * # of shares outstanding * Par Value) APIC (Plug in remaining value) Stock Dividend Date of Record - answerNo JE Earnings per share (EPS) equation - answerNet income - Preferred stock dividends/ Avg. # common shares outstanding Price Earnings (PE) Equations - answerMarket Price per share/ EPS Percent change - answerCurrent year - Prior Year/ Prior Year Current Ratio - answerCurrent Assets/ Current Liabilities Quick Ratio - answerCash + Marketable Securities + Receivables/ Current Liabilities Receivables Turnover - answerCredit Sales/ Avg Receivables Inventory Turnover - answerCost of Goods Sold/ Avg. Inventory Gross Profit Margin - answerGross Profit/ Sales Profit Margin - answerNet Income/ Sales