For YOURlecturer ONLY

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INSTRUCTIONS FOR PART 2

It is imperative that you follow these instructions carefully. DO NOT SUBMIT

THE INSTRUCTIONS PAGE OR THE QUESTIONS.

 Use the “Header” format for your first and last names

 No cover page is needed.

 You may type or neatly handwrite or your solutions.

 Work each problem on a separate sheet of plain white paper.

 You must support the solutions to the problems with computations, in order to receive credit.

 Submit your answer sheets as a WORD document file or a PDF document file in LEO Quiz 3 Assignment Folder.

 Save you solutions with the following file name: Last Name, First Name, ACCT310 Quiz 1 Spring 2016.

 Each questions is worth 17.5 percent of the total points

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ACCT310 Spring 2016 Quiz #1

The following pretax amounts pertain to the XYZ Company for the year ended

December 31, 2015.

Sales ............................................................................... $ 510,000

Operating expenses .................................... 79,000

Extraordinary gain .................................... 32,000

Interest expense ...................................... 5,000

Cost of goods sold .................................... 260,000

Gain on sale of equipment ............................. 14,000

Prior period adjustment( before tax) ............................... (16,000)

Gain on disposal of business component.................. 40,000

Retained earnings, January 1, 2015 .................... 1,800,000

Dividends declared …………………… 10,000

Dividends paid …………………………………….. 40,000

The corporate tax rate is 40 percent. The company had 10,000 shares of common stock

outstanding for the entire year.

Prepare a multiple-step income statement and statement of retained earnings,

in good form, for the year ended December 31, 2015, including EPS.

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2. The December 31, 2015, post-closing trial balance ($ in thousands) for UMUC

Company is presented below:

Debits Credits

Cash 22,500

Investments (long-term) 55,000

Accounts receivable 30,000

Allowance for uncollectible accounts 7,500

Prepaid insurance 4,500

Inventories 100,000

Land 45,000

Buildings 140,000

Accumulated depreciation - Buildings 50,000

Equipment 132,500

Accumulated depreciation- Equipment 30,000

Patents 5,000

Accounts payable 37,500

Notes payable, due 2016 65,000

Interest payable 10,000

Bonds payable, due 2024 120,000

Common stock, no par, 20,000 shares

authorized, issued, and outstanding 150,000

Retained earrings - 64,500

Totals 534,500 534,500

Required: Prepare a classified balance sheet for UMUC Company at December 31, 2015.