1) On January 4, Year 1, Barber Company purchased 7,500 sharesof Convell Company for $84,500 plus a broker's fee of $1,500.Convell Company has a total of 37,500 shares of common stockoutstanding and it is presumed the Barber Company will have asignificant influence over Convell. During each of the next twoyears, Convell declared and paid cash dividends of $0.85 per share,and its net income was $97,000 and $92,000 for Year 1 and Year 2,respectively. What is the book value of Barber's investment inConvell at the end of Year 2?

A) $111,050.

B) $86,000.

C) $122,800.

D) $73,250.

E) $123,800.

2) The accountant for Crusoe Company is preparing the company'sstatement of cash flows for the fiscal year just ended. Thefollowing information is available:

Retained earningsbalance at the beginning of the year	$	128,500
Cash dividends declared for theyear		48,500
Proceeds from the sale ofequipment		83,500
Gain on the sale ofequipment		7,500
Cash dividends payable at thebeginning of the year		20,500
Cash dividends payable at theend of the year		23,000
Net income for the year		94,500

The amount of cash dividends paid during the year would be:

A) $253,000.

B) $179,000.

C) $46,000.

D) $258,500.

E) $281,000.

3) On February 15, Jewel Company buys 6,500 shares of MarceloCorp. common stock at $28.68 per share plus a brokerage fee of$475. The stock is classified as long-term available-for-salesecurities. This is the company’s first and only investment inavailable-for-sale securities. On March 15, Marcelo declares adividend of $1.30 per share payable to stockholders of record onApril 15. Jewel received the dividend on April 15 and ultimatelysells half of the Marcelo stock on November 17 of the current yearfor $29.45 per share less a brokerage fee of $325. The journalentry to record the purchase on February 15 is:

A) Debit Long-Term Investments-AFS $186,420; credit Cash$186,420.

B) Debit Long-Term Investments-Trading $186,895; credit Cash$186,895.

C) Debit Long-Term Investments-HTM $191,425; credit cash$191,425.

D )Debit Long-Term Investments-AFS $186,895; credit Cash$186,895.

E) Debit Long-Term Investments-Trading $186,420; credit Cash$186,420.

4) Jeffreys Company reports depreciation expense of $58,000 forYear 2. Also, equipment costing $194,000 was sold for a $11,800loss in Year 2. The following selected information is available forJeffreys Company from its comparative balance sheet. Compute thecash received from the sale of the equipment.

At December 31	Year 2			Year 1
Equipment	$	700,000		$	894,000
AccumulatedDepreciation-Equipment		500,000			590,000

A) $57,800.

B) $34,200.

C) $78,200.

D) $46,000.

E) $58,000.

5) Use the following information to compute the cost of goodsmanufactured. Assume that all raw materials used were traceable tospecific units of product.

Beginning rawmaterials	$	6,700
Ending raw materials		5,200
Direct labor		13,450
Raw material purchases		8,600
Depreciation on factoryequipment		7,700
Factory repairs andmaintenance		4,500
Beginning finished goodsinventory		11,400
Ending finished goodsinventory		10,100
Beginning work in processinventory		6,900
Ending work in processinventory		7,500

A) $35,750.

B) $35,150.

C) $36,650.

D) $36,350.

E) $42,650.

6) Memphis Company anticipates total sales for April, May, andJune of $830,000, $930,000, and $980,000 respectively. Cash salesare normally 30% of total sales. Of the credit sales, 30% arecollected in the same month as the sale, 65% are collected duringthe first month after the sale, and the remaining 5% are collectedin the second month. Compute the amount of accounts receivablereported on the company’s budgeted balance sheet for June 30.

$480,200.

$543,900.

$512,750.

$851,950.

$922,950.

7) Landmark Corp. buys $400,000 of Schroeter Company's 7%,5-year bonds payable at par value on September 1. Interest paymentsare made semiannually. Landmark plans to hold the bonds for the5-year life. When the bonds mature, the journal entry to record theproceeds will be:

A) Debit Cash $400,000; credit Interest Receivable $400,000.

B) Debit Cash $400,000; credit Long-Term Investments-HTM$400,000.

C) Debit Cash $400,000; credit Interest Revenue $400,000.

D) Debit Cash $400,000; credit Bonds Payable $400,000.

E) Debit Long-Term Investments-HTM $400,000; credit Cash$400,000.