Question

Can anyone help me with my homework problems?

1.

Sunny Company has the following account balances after adjusting entries at December 31, 2012:

Accounts Payable	$24,000
Dividends	7,000
Treasury Stock, Common (22,000 shares)	98,000
Preferred Stock ($10 par)	80,000
Land	220,000
Cash	220,000
Equipment	120,000
Accounts Receivable	90,000
Common Stock ($1 par)	365,000
Sales	820,000
Prepaid Rent	70,000
Bonds Payable (due 2030)	120,000
Premium on Bonds Payable	8,000
Cost of Goods Sold	720,000
Interest Expense	20,000
Unearned Revenue	20,000
Allowance for Doubtful Accounts	15,000
Operating Expenses	97,000
Accumulated Depreciation- Equipment	40,000
Paid-in Capital in Excess of Par Value, Common	113,000
Retained Earnings	57,000

The total assets on the December 31, 2012 balance sheet would be:

a). 720,000

b). 665,000

c). 674,000

d). 680,000

Use the following chart for the next two questions

Marla Corporation’s ledger includes the following selected account balances at December 31, 2012:

Paid-in Capital in Excess of Par Value, Common	560,000
Cash	820,000
Unearned Revenue	55,000
Discount on Bonds Payable	75,000
Retained Earnings	300,000
Paid-in Capital in Excess of Par Value, Preferred	100,000
Cash Dividends Payable	80,000
Treasury Stock, Common, 36,000 shares	40,000
Accounts Payable	120,000
Preferred Stock, 12% $100 par value, 4,000 shares issued	400,000
Bonds Payable, 14%	900,000
Common Stock, $1 par value, 240,000 shares issued	240,000

The number of common shares outstanding at December 31, 2012 would be:

1. 204,000

2. 200,000

3. 276,000

4. None of the above

How much is the book value per share of common stock at December 31, 2012, assuming the preferred stock's liquidation value is equal to the par value and there are no dividends in arrears? (Round answer to the nearest whole cent.)

1. 5.71

2. 5.69

3. 5.15

4. 6.20

Tom Company (which uses a perpetual inventory system) has the following account balances after adjusting entries at December 31, 2012: Cash $227,000 Merchandise Inventory (12/31/2012) 100,000 Equipment 120,000 Accounts Receivable 105,000 Common Stock ($.50 par) 350,000 Sales 880,000 Rent Expense 67,000 Bonds Payable (due 2040) 120,000 Accounts Payable 27,000 Dividends 10,000 Treasury Stock, Common (19,000 shares) 47,000 Preferred Stock 6% ($10 par) 85,000 Land 260,000 Paid-in Capital in Excess of Par Value, Preferred 8,000 Cost of Goods Sold 720,000 Interest Expense 20,000 Unearned Revenue 23,000 Paid-in Capital from Treasury Stock Transactions, Common 56,000 Allowance for Doubtful Accounts 5,000 Operating Expenses 95,000 Accumulated Depreciation- Equipment 30,000 Paid-in Capital in Excess of Par Value, Common 117,000 Retained Earnings (1/1/2012) 70,000 The number of outstanding common shares at December 31, 2012 is: 1. 720,000 2.665,000 3. 674,000 4. 680,000

Answer 1

1)

Sunny Company:

The correct answer is d) $680,000.

Supporting calculations:

Current Assets:
Cash		$220,000
Accounts Receivable		$90,000
Prepaid Rent		$70,000
Total Current Assets			$380,000
Long-term assets:
Land		$220,000
Equipment	$120,000
Less: Accumulated Depreciation - Equipment	($40,000)	$80,000
Total Long-term assets			$300,000
Total Assets			$680,000

Therefore, total assets is $680,000.

2)

Marla Corporation:

The correct option is d) None of the above

Supporting explanations:

The total outstanding common shares means the total shares currently outstanding which are issued. Therefore, as per the given information, the current outstanding common shares are 240,000 ($240,000/$1 per share).

Thus, the correct option is none of the above.

Note: As per HOMEWORKLIB RULES, the first question should be answered but i have answered the first two multiple choice questions, hence, please post the remaining two questions separately. Please do not give a thumb down for not answering all the questions as i have followed the HOMEWORKLIB RULES.