Accounting Exercises



Accounting Exercises of Chapter 2 and 3

Chapter 2

Exercise 1

Issuance of Stock

A

Date

Items

Debit

Credit

X-X-13

Cash

2000000

 

 

Common Stock at Par

 

100,000

 

Paid in capital in Excess of Par

 

1,900,000

B

Date

Items

Debit

Credit

X-X-13

Cash

2000000

 

 

Common Stock at $5

 

500,000

 

Paid in capital in Excess of $5

 

1,500,000

C

Date

Items

Debit

Credit

X-X-13

Cash

2000000

 

 

Common Stock

 

2000000

Chapter 2

Exercise 3

Analysis of stockholders' equity

A

Cash

$604,000

Price per share

$104

Number of preferred stock issued

5569.536424

B

Number of common stock sold

792324.2468

Price per share

2.965957447

cash

6,970,000

Par value

10

Common stock issued

$7,923,242.47

Paid in capital

$12,543,242.47

average issue price of the common stock sold

$15.83

C

Increase in Paid in Capital during 19X6

1,044,000

D

Increase or decrease in Total Legal Capita;

19X6

Total common stock issued at par

$7,923,242.47

Total preferred stock issued at par

$556,954

Total legal capital in 19x6

$8,480,196.11

19X5

Cash

$500,000

Price per share

1

Number of preferred stock issued

$500,000.00

Cash

5,350,000

Price per share

$3.06

Number of COMMON stock issued

163551.4019

Total common stock issued at par

1635514.019

Total preferred stock issued at par

$50,000,000.00

Total legal capital in 19X5

$51,635,514.02

Increase or decrease in legal stock

$43,155,317.91

Chapter 2

Problem 1

Case A

Case A

Case A

 

 

 

90000000

86400000

94500000

162000000

155520000

170100000

72000000

69120000

75600000

7200000

6912000

7560000

0

288000

360000

0

0

4500000

0

3600000

0

90000000

82800000

99000000

Chapter 3

Exercise 1

Product costs and period costs

A

1. Weekly wages of an equipment maintenance worker

Period Cost

2. Marketing costs of a soft drink bottler

Product Cost

3. Cost of sheet metal in a Honda automobile

Product Cost

4. Cost of president's subscription to Fortune magazine

Period Cost

5. Monthly operating costs of pollution control equipment used in a steel mill

Period Cost

6. Weekly wages of a seamstress employed by a jeans maker

Period Cost

7. Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams

Product Cost

B

2. Marketing costs of a soft drink bottler

Not Easily Traced to Finished Product

3. Cost of sheet metal in a Honda automobile

Easily Traced to Finished Product

7. Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams

Easily Traced to Finished Product

Chapter 3

Exercise 2

Definitions of manufacturing concepts

Total Direct Material Consumed

Amount

Brass

75000

Machine Lubricants

9000

Total

84000

Total direct labor

Amount

Wages and salaries Machine operators

128,000

Production supervisors

64000

Maintenance personnel

41000

Sales commissions

20000

Total

253,000

Total Prime Cost

337,000

Manufacturing Overhead

Amount

Repair Parts

16,000

Other factory overhead Variable

35,000

Fixed

46,000

Total

97,000

Total Conversion Cost

350,000

Chapter 3

Exercise 5

A

Schedule of cost of goods manufactured for the year ended December ...