# ACC 557/ACC557 Final Exam Part 1 (A+++++ Solution) - 93294

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1. Ramos Corporation sold 400 shares of treasury stock for \$45 per share. The cost for the shares was \$35. The entry to record the sale will include a

credit to Gain on Sale of Treasury Stock for \$14,000.

credit to Paid-in Capital from Treasury Stock for \$4,000.

debit to Paid-in Capital in Excess of Par for \$4,000.

credit to Treasury Stock for \$18,000.

2. Each of the following decreases retained earnings except

cash dividend.

liquidating dividend.

stock dividend.

All of these decrease retained earnings.

3. Paid-In Capital in Excess of Stated Value

is credited when no-par stock does not have a stated value.

is reported as part of paid-in capital on the balance sheet.

represents the amount of legal capital.

normally has a debit balance.

4. A computer company has \$2,800,000 in research and development costs. Before accounting for these costs, the net income of the company is \$2,000,000. What is the amount of net income or loss after these R & D costs are accounted for?

\$800,000 loss

\$2,000,000 net income

\$0

Cannot be determined from the information provided.

5. A plant asset was purchased on January 1 for \$100,000 with an estimated salvage value of \$20,000 at the end of its useful life. The current year's Depreciation Expense is \$10,000 calculated on the straight-line basis and the balance of the Accumulated De

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