Question 1 (12 points) On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. Use this information to prepare the General Journal...

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Question 1 (12 points)   On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 entry. General Journal: Date Accounts Debit Credit 1/2/16                          Question 2 (12 points)   On January 2, 2016, Alpha Corporation issued 1,500 shares of $6 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,100 shares of its $100 par 5% cumulative preferred stock for $105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries. General Journal: Date Accounts Debit Credit 1/2/16                               1/15/16                          Question 3 (12 points)   On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share. Use this information to prepare the General Journal entry (without explanation) for September 1. General Journal: Date Accounts Debit Credit 9/1/16                           Question 4 (12 points)   On January 1, 2016, Alpha Corporation had 100,000 shares of common stock outstanding. On April 15, the board declared a $0.30 per share dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15.  Use this information to prepare the General Journal entries (without explanation) for April 15 & May 15. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit 4/15/16                       5/15/16                 Question 5 (12 points)   On January 1, 2016, Alpha Corporation had 300,000 shares of common stock outstanding with a par value of $3 per share. On March 31, Alpha Corporation declared a 10% stock dividend when the market value was $8 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit                           Question 6 (10 points)   On December 31, 2015, Alpha Corporation has outstanding 1,000 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 20,000 shares of $10 par value common stock. No dividends were paid in 2015. During 2016, Alpha distributed $40,000 in dividends. Use this information to determine for the 2016 the dollar amount of dividends that will be distributed to: 1. Preferred Stock 2. Common Stock   Question 6 options: Question 7 (20 points)   The following are selected accounts for the Alpha Dog Company after all Fiscal Year December 31, 2016, adjusting entries & closing entries have been posted. All balances are normal. Account Amount Common Stock, $5 par $150,000 Treasury Stock, at cost $10 per share 20,000 Dividends Payable 5,000 Paid in Capital in excess of par, Common Stock 30,000 Paid in Capital in excess of par, Preferred Stock 3,500 Retained Earnings 140,000 Bonds Payable 75,000 Preferred Stock, $100 par, 5% cumulative 35,000 On December 31, 2016, Common Stock was authorized 50,000 shares and Preferred Stock was authorized 5,000 shares. Prepare only the Stockholder's Equity section of the Classified Balance Sheet for the year end. Be sure to use a good format, dollar signs and single underlines were required. There are a few extra lines in the formatted input answer form to allow for acceptable balance sheet format variations.  Partial Balance Sheet: Alpha Dog Company Balance Sheet (partial)                                                                                     Question 8 (10 points)   On January 2, 2016, Alpha Corporation procured new equipment with an issue of 5,000 shares of $4.00 par value common stock. The equipment had an MSRP of $65,000. Alpha's stock was trading on the open market for $9.75 per share on January 2nd. Use this information to prepare the General Journal entry (without explanation) for the January 2 entry. General Journal: Date Accounts Debit Credit 1/2/16                         Question 9 (10 points)   Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element: PP&E Element Amount Land $10,000 Building 25,000 Equipment 40,000 Bowie paid $70,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.) Question 10 (10 points)   Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $15,000 for the truck. The truck is expected to have a $3,000 residual value and a 5-year life.  Cambridge has a December 31 fiscal year end. Using the double-declining balance method, how much is the 2019 depreciation expense? (Enter only whole dollar values.)  Hint: what is the year 2 depreciation amount? Question 11 (10 points)   Cambridge Company purchased a truck on January 1, 2018. Cambridge paid $19,000 for the truck. The truck is expected to have a $3,000 residual value and a 7-year life.  Cambridge has a December 31 fiscal year end. Using the straight-line method, how much is the 2019 depreciation expense? (Enter only whole dollar values.) Question 12 (10 points)   Somerset Company acquired a piece of equipment with a list price of $200,000 for $188,000.  Freight to Somerset's location was $8,000.  Installation and testing costs were $6,500.  An old piece of equipment was scrapped as a result of this new purchase.  The old piece of equipment had an undepreciated value (net book value) of $8,000.  The new piece of equipment is expected to have a 10 year life and a salvage value of $15,000.  What is the total value assigned to the new piece of equipment? Question 13 (10 points)   February 1, 2018, Salisbury Company purchased land for the future factory location at a cost of $107,000.  The dilapidated building that was on the property was demolished so that construction could begin on the new factory building. The new factory was completed on November 1, 2018. Costs incurred during this period were: Item Amount Demolition dilapidated building $2,600 Architect Fees $11,250 Legal Fees - for title search $1,250 Interest During Active Construction Period $5,025 Real estate transfer tax $1,125 Construction Costs $605,000 Using this information, how much should be recorded as the cost of the land? Question 14 (10 points)   On January 1, 2017, Frostburg Company purchased for $68,500, equipment having a service life of six years and an estimated residual value of $4,000. Frostburg has recorded depreciation of the equipment using the straight-line method.  On December 31, 2019, before making any annual adjusting entries, the equipment was exchanged for new machinery having a fair value of $35,000.  The transaction has commercial substance. Use this information to prepare all General Journal entries (without explanation) required to record the events for December 31, 2019. General Journal: Date Accounts Debit Credit                                                           Question 15 (10 points)   Bowie Company uses a calendar year and the straight line depreciation method.  On December 31, 2018, after adjusting entries were posted, Bowie Company sold a machine which was originally purchased on January 1, 2015. The historical cost was $21,000, the salvage value assumed was $2,000 and the original estimated life was five years..  It was sold for $4,000 cash. Using this information, how much should be recorded on December 31 for the Gain or (Loss)?  Round to whole dollars. Answer Question 16 (10 points)   Frederick Mining Company owns a large parcel of land which costs $1,000,000.  It is estimated to contain 1,500,000 tons of recoverable ore.  It is estimated that the recovery of the ore will take 10 years and that after the ore is fully depleted the land will be sold for a market value of $100,000.  In 2018, Frederick extracted and sold 115,000 tons of ore.  What is the amount of depletion that should be recorded?  Round total the nearest whole dollar. Question 17 (10 points)   On January 2, 2019, Adelphi Company purchased a patent for $235,000 plus $9,000 in legal fees. On that date, the patent had a remaining legal life of 13 years. Adelphi Company expects to use the patent for 9 years after which time it will be worthless.  How much is the annual amortization expense for 2019?  Round to nearest whole dollar. Your Answer: Answer Question 18 (10 points)   Annapolis Company was recently sold for $450,000.  Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $99,000 Inventory $250,000 Property, Plant & Equipment (net) $510,000 Notes Payable assumed by buyer $615,000 Using this information, how much should be recorded as Goodwill for this transaction? 19. W-2's must be mailed to employees by January 31 each year. The employer must submit W-2 information to the government no later than February 28 each year. What are some the challenges doing this? 20. If you work for a company and have the ability to sign checks, you may have a liability for unpaid payroll taxes. How comfortable are you with this responsibility? 21. If you work for a company that is not properly submitting payroll taxes, this usually creates a legal and financial liability for the company but you can still claim full credit for withholding on your tax return. What do you think of this as a concern for small business owners and officers? 22. At some point, you've probably have filled out a W-4. The W-4 was recently revised. View here: https://www.irs.gov/forms-pubs/about-form-w-4  and https://www.irs.gov/pub/irs-pdf/fw4.pdf and consider how you manage your Federal Tax withholding obligation. What are the financial consequences you need to think about as you complete the W-4?
Answered Same DayOct 01, 2021

Answer To: Question 1 (12 points) On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value...

Yash answered on Oct 05 2021
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Question 1 (12 points)
 
On January 2, 2016, Alpha Corporation issued 5,000 shares of $2 par value common stock. The issue price was $7.50 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 entry.
General Journal:
    Date
    Accounts
    Debit
    Credit
    1/2/16
     Bank A/C ------------------------------Dr.
    37,500
     
     
     To Common Stoc
k
     
    10,000
     
     To Paid in Capital in excess of par
     
    27,500
 
 Question 2 (12 points)
 
On January 2, 2016, Alpha Corporation issued 1,500 shares of $6 par value common stock. The issue price was $15 per share. On January 15, Alpha Corporation issued 1,100 shares of its $100 par 5% cumulative preferred stock for $105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries.
General Journal:
    Date
    Accounts
    Debit
    Credit
    1/2/16
     Bank A/C ------------------------------Dr.
    22,500
     
     
     To Common Stock
     
    9,000
     
     To Paid in Capital in excess of par
     
    13,500
     
     
     
     
    1/15/16
     Bank A/C ------------------------------Dr.
    1,15,500
     
     
     To 5% cumulative preference stock
     
    1,10,000
     
     To Paid in Capital in excess of par
     
    5,500
 
 Question 3 (12 points)
 
On January 2, 2016, Alpha Corporation issued 15,000 shares of $10 par value common stock for $15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading $20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of $25 per share. Use this information to prepare the General Journal entry (without explanation) for September 1.
General Journal:
    Date
    Accounts
    Debit
    Credit
    9/1/16
     Bank A/C ------------------------------Dr.
    12,500
     
     
     To Common Stock
     
    5,000
     
     To Paid in Capital in excess of par
     
    7,500
 
 
Question 4 (12 points)
 
On January 1, 2016, Alpha Corporation had 100,000 shares of common stock outstanding. On April 15, the board declared a $0.30 per share dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15.  Use this information to prepare the General Journal entries (without explanation) for April 15 & May 15. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
    4/15/16
     Retained Earnings --- Dr.
    30,000 
     
     
     To Dividend Payable
     
    30,000 
     
     
     
     
    5/15/16
     Dividend Payable -----------Dr.
    30,000 
     
     
     To Bank
     
    30,000 
Question 5 (12 points)
 
On January 1, 2016, Alpha Corporation had 300,000 shares of common stock outstanding with a par value of $3 per share. On March 31, Alpha Corporation declared a 10% stock dividend when the market value was $8 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."
General Journal:
    Date
    Accounts
    Debit
    Credit
    03/31/16 
    Retained Earnings -------------------Dr. 
    90,000 
     
     
     To Dividend Payable
     
    90,000 
     
     
     
     
 
Question 6 (10 points)
 
On December 31, 2015, Alpha Corporation has outstanding 1,000 shares of $100 par value, 7% cumulative and nonparticipating preferred stock, and 20,000 shares of $10 par value common stock. No dividends were paid in 2015. During 2016, Alpha distributed $40,000 in dividends. Use this information to determine for the 2016 the dollar amount of dividends that will be distributed to:
1. Preferred Stock
2. Common Stock
 
Question 6 options:
    
    
Question 7 (20 points)
 
The following are selected accounts for the Alpha Dog Company after all Fiscal Year December 31, 2016, adjusting entries & closing entries have been posted. All balances are normal.
    Account
    Amount
    Common Stock, $5 par
    $150,000
    Treasury Stock, at cost $10 per...
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