Acct 221 Principles of Accounting Ii Final Exam Answers

ACCT 221 Principles of Accounting II Final Exam Answers

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ACCT 221 Principles of Accounting II Final Exam Answers

Part A.
On January 1, 2014, Flip Corporation had 560,000 shares of $1 par value common stock issued and outstanding. There was a $3,000,000 balance in the Retained Earnings account at the beginning of the year. During the first quarter of the year, the following transactions occurred:

Jan. 8 Issued 40,000 shares of its own common stock for $400,000.
Jan. 18 Declared a cash dividend of $1 per share to stockholders of record on Jan. 10.
Jan. 31 Paid the $1 cash dividend declared on Jan. 18.
Feb. 2 Purchased 3,000 shares of its own common stock for the treasury at $11 per share.
Feb. 14 Sold 2,000 shares of the treasury stock purchased on Feb. 2 for $12 per share.
March 25 Declared a 2 for 1 stock split on outstanding shares.

Instructions
Prepare journal entries to record the above transactions.

Part B.
The following information is available for Flip Corporation for the year ended December 31, 2014:

Beginning retained earnings                                                         $   340,000
Cost of goods sold                                                                             620,000
Declared cash dividends                                                                     50,000
Operating expenses                                                                           170,000
Other expenses and losses                                                                 40,000
Other revenues and gains                                                                   60,000
Sales                                                                                               1,000,000
Tax rate                                                                                                   30%


Instructions:
1....