1.  After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.   Cash      18,000 ...

1.  After several years of business, Abel, Barney, and Cole are liquidating. The following are post-closing account balances.
  Cash      18,000  Inventory     73,000  Other assets   157,000  Accounts Payable    61,000   Abel, Capital    50,000   Barney, Capital   50,000   Cole, Capital   87,000
   Noncash assets are sold for $275,000. Profits and losses are shared equally.
   After all li The partnership of Brandon and Ryan is being liquidated. All gains and losses are shared in a 3:1 ratio, respectively. Before liquidation, their balance sheet balances are as follows:
  Cash $10,000  Other Assets 8,000  Liabilities 4,000  Brandon, Capital  7,000  Ryan, Capital 7,000
  a.  If the Other Assets are sold for $10,000, how much will each partner receive before paying liabilities and distributing the remaining assets?
  b.  If the Other Assets are sold for $8,000, how much will each partner receive before paying liabilities and distributing remaining assets?
 
Part B (10 points each for a possible total of 20 points)
 1.  Simon Brothers pays $47,000 into a bond sinking fund each year to redeem the future maturity of its bonds. During the first year, the fund earned $3,825. At the time of bond redemption, the fund has a balance of $417,000. Of this, $400,000 was used to redeem the bonds. Journalize the following entries.
  a. Initial deposit
  b. The first year’s interest
  c. The redemption of the bonds
 2.  On January 1, Auctions Online issued $300,000, 9%, 10-year bonds to lenders at the contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries.
  a. Issued the bonds
  b. Paid first semiannual interest payment
  c. Retired the bonds at maturityabilities are paid, divide the remaining cash amongst the partners.

Part C (10 points each for a possible total of 20 points)
 1.  Prepare a statement of retained earnings in proper form for White Corporation for the year ended December 31, 2012, from the following:
  Retained Earnings, January 1, 2012 $2,000
  Dividends paid during the year 800
  Net income for the year 3,000
  Correction of prior year error. Purchase   of land recorded as rent expense 1,000
 2. Curtis Corporation’s balance sheet included the following:
  Common Stock, $5 par value, 5,000 shares issued   and outstanding $25,000
  Retained Earnings 20,000
  Total Stockholders’ Equity $45,000
  Prepare journal entries for the following transactions.
  May    3 Issued 500 shares at $6 per share
      9 Reacquired 100 shares at $4 per share
    15 Reissued 50 of the Treasury shares at $7 per share
    17 Reissued 10 of the Treasury shares at $3 per shar

                 o6-exam 6
Part A (2 points each for a possible total of 6 points)
The following information is given for Tripp Company, which uses the indirect method.
Net income $20,000 Depreciation expense 3,000 Increase in accounts receivable 2,000 Payment of dividends 2,000 Proceeds from sale of equipment 6,000 Increase in accounts payable 4,000 Decrease in inventory 3,000
From the information provided, answer the following questions:
 1. The cash flow from operating activities is ________.
 2. The cash flow from investing activities is ________.
 3. The cash flow from financing activities is ________.

Part B (2 points each for a possible total of 10 points)
Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth).
    Year 2  Year 1
Net Credit Sales $25,000 $30,000 Cost of Goods Sold  16,000 18,000 Net Income 2,000 2,800 Cash 5,000 900 Accounts Receivable 3,000 2,000 Inventory 2,000 3,600 Current Liabilities 6,000 5,000
Compute the following:
 1. Current ratio for Year 2
 2. Acid-test ratio for Year 2
 3. Accounts receivable turnover for Year 2
 4. Average collection period for Year 2
 5. Inventory turnover for Year  2

Part C (10 points)
Prepare an income statement showing departmental contribution margin based on the following:
    Dept. X  Dept. Y  Rent Expense
Space (square feet) 17,500  35,000
Net Sales $60,000 $40,000
Cost of Goods Sold 18,000  16,000
Rent Expense (allocated based on square feet)  $2,700

(4 points each for a possible total of 24 points)
From the following transactions, prepare the appropriate general journal entries for the month of April.
 1. Raw materials costing $60,000 were issued from the storeroom.
 2. Direct labor of $53,000 was charged to production.
 3. Indirect labor costs of $17,000 were incurred.
 4. Overhead was applied at the rate of 40% of direct labor dollars.
 5. Completed products costing $42,000 were transferred to finished goods.
 6. Products costing $32,000 were sold