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Prepare JE's as needed for the following:
1. January 1st, 2000 - Conniecoe
Corporation issued $500,000, 10%, 5-year bonds dated January 1,
2000, at 97. The
bonds pay semiannual interest on January 1st and July 1st. The company uses the
straight-line method of amortization and has a calendar year end.
2. Prepare the remaining journal entries that Conniecoe Corporation would make for the year 2000.
3. Prepare the remaining journal entries that Conniecoe Corporation would make for the year 2001.
4. January 1st, 2000 - Wineyjon
Corporation issued $500,000, 10%, 5-year bonds dated January 1,
2000, at 104.
The bonds pay semiannual interest on January 1st and July 1st. The company uses
the
straight-line method of amortization and has a calendar year end.
5. Prepare the remaining journal entries that Wineyjon Corporation would make for the year 2000.
6. Prepare the remaining journal entries that Wineyjon Corporation would make for the year 2001.
Use the following information for
problems 7 & 8
Almstdun Company
Income Statement
For the Year Ending 12/31/03
Income from Sales $175,000
Operating Expenses:
Wages Expense $41,000
Supplies Expense 12,000
Insurance Expense 2,000
Depreciation Expense 10,000
Total Operating Expenses 65,000
Net Income from Operations $110,000
Almstdun Company
Comparative Balance Sheet
As of 12/31/03 & 12/31/02
12/31/03 12/31/02
Assets
Cash $106,000 $ 20,000
Accounts Receivable 45,000 30,000
Supplies 62,000 50,000
Prepaid Insurance 5,000 7,000
Equipment 50,000 50,000
Less Accumulated Depreciation (15,000) (5,000)
Total Assets $253,000 $152,000
Liabilities & Owners Equity
Liabilities:
Accounts Payable (supplies) $ 0 $ 10,000
Wages Payable 2,000 1,000
Total Liabilities $ 2,000 $ 11,000
Owners Equity:
Common Stock $ 92,000 $ 92,000
Paid in Capital in Excess of Par 44,000 44,000
Retained Earnings 115,000 5,000
Total Owners Equity $251,000 $141,000
Total Liability & Owners Equity $253,000 $152,000
7. For the year 2003 - prepare the
Cash Flows from Operating Activities section of the Statement of
Cash Flows
(indirect method) for Almstdun Company.
8. For the year 2003 - prepare the
Cash Flows from Operating Activities section of the Statement of
Cash Flows
(direct method) for Almstdun Company.
Answer Key.
1.Cash 485,000
Discount on Bonds Payable 15,000
Bonds Payable 500,000
2.7/1/00 -
Bond Interest Expense 25,000
Cash 25,000
Bond Interest Expense 1,500
Discount on Bonds Payable 1,500
12/31/00-
Bond Interest Expense 25,000
Bond Interest Pay 25,000
Bond Interest Expense 1,500
Discount on Bonds Payable 1,500
3.1/1/01 -
Bond Interest Payable 25,000
Cash 25,000
7/1/01 -
Bond Interest Expense 25,000
Cash 25,000
Bond Interest Expense 1,500
Discount on Bonds Payable 1,500
12/31/01-
Bond Interest Expense 25,000
Bond Interest Payable 25,000
Bond Interest Expense 1,500
Discount on Bonds Payable 1,500
4.Cash 520,000
Premium on Bonds Payable 20,000
Bonds Payable 500,000
5.7/1/00 -
Bond Interest Expense 25,000
Cash 25,000
Premium on Bonds Payable 2,000
Bond Interest Expense 2,000
12/31/00-
Bond Interest Expense 25,000
Bond Interest Payable 25,000
Premium on Bonds Payable 2,000
Bond Interest Expense 2,000
6. Bond Interest Payable 25,000
Cash 25,000
7/1/01 -
Interest Expense 25,000
Cash 25,000
Premium on Bonds Payable 2,000
Bond Interest Expense 2,000
12/31/01-
Bond Interest Expense 25,000
Bond Interest Payable 25,000
Premium on Bonds Payable 2,000
Bond Interest Expense 2,000
7.Cash Flow from Operating Activities
Net Income $ 110,000
Adjustments to reconcile Net Income to
Net Cash Provided by Operating Activities:
Depreciation 10,000
Decrease (Increase) in AR (15,000)
Decrease (Increase) in Supplies (12,000)
Decrease (Increase) in Prepaids 2,000
Increase (Decrease) in AP (10,000)
Increase (Decrease) in Wages payable 1,000
Net Cash Provided by Operating Activities $ 86,000
8.Cash from Operating Activities:
Cash Receipts from Customers (175,000-15,000) $160,000
Wages (41,000-1,000) (40,000)
Supplies (12,000+62,000-50,000+10,000) (34,000)
Insurance (2,000-2,000) 0
Cash from Operating Activities $ 86,000