Baruch College – CUNY

Stan Ross Department of Accountancy

Accountancy 3100 - Section TR74 – A

Fall 2003 – Prof Jan Sweeney

Quiz 1-Solution

Question 1

1. No entry necessary.

2. Land ...................................................................................................... 200,000

Common Stock ........................................................................................ 50,000

Paid-in Capital in Excess of Stated Value .................................................. 150,000

3. Cash ...................................................................................................... 480,000

Preferred Stock ........................................................................................ 400,000

Paid-in Capital in Excess of Par—Preferred Stock .................................... 80,000

4. Organization Expense ................................................................................ 12,000

Common Stock ........................................................................................ 1,000

Paid-in Capital in Excess of Stated Value .................................................. 11,000

Q2 Part A.

————————————————————————————————————

Balance 400,000 $2,000,000 $850,000 $3,000,000

#1—March 1 160,000 800,000 -0- (800,000)

————————————————————————————————————

Balance 560,000 $2,800,000 $850,000 $2,200,000

#2—April 1 560,000 -0- -0- -0-

————————————————————————————————————

Balance 1,120,000 $2,800,000 $850,000 $2,200,000

#3—July 1 112,000 280,000 840,000 (1,120,000)

————————————————————————————————————

Balance 1,232,000 $3,080,000 $1,690,000 $1,080,000

#4—Aug. 1 -0- -0- -0- (123,200)

————————————————————————————————————

Balance 1,232,000 $3,465,000 $2,075,000 $956,800

#5—Nov. 1 -0- -0- -0 -0

Balance 1,232,000 $3,080,000 $1,690,000 $956,800 ————————————————————————————————————

Part B $3,080,000 + $1,690,000 + 956,800 – $120,000 = $5,606,800

Question 3

(a) Cash ......................................................................................... 4,200

Treasury Stock.......................................................................................... 3,600

Paid-in Capital from Treasury Stock.......................................................... 600

(b) Cash...................................................................................................... 2000

Paid-in Capital from Treasury Stock................................................... 400

Treasury Stock.......................................................................................... 2,400

Baruch College – CUNY

Stan Ross Department of Accountancy

Accountancy 3100 - Section TR74 – B

Fall 2003 – Prof Jan Sweeney

Quiz 1-Solution

Question 1

(a) Cash ......................................................................................... 4,200

Treasury Stock.......................................................................................... 3,600

Paid-in Capital from Treasury Stock.......................................................... 600

(b) Cash...................................................................................................... 2000

Paid-in Capital from Treasury Stock................................................... 400

Treasury Stock.......................................................................................... 2,400

Question 2

1. No entry necessary.

2. Land ...................................................................................................... 200,000

Common Stock ........................................................................................ 50,000

Paid-in Capital in Excess of Stated Value .................................................. 150,000

3. Cash ...................................................................................................... 480,000

Preferred Stock ........................................................................................ 400,000

Paid-in Capital in Excess of Par—Preferred Stock .................................... 80,000

4. Organization Expense ................................................................................ 12,000

Common Stock ........................................................................................ 1,000

Paid-in Capital in Excess of Stated Value .................................................. 11,000

Q3 Part A.

———————————————————————————————————

Balance 400,000 $2,000,000 $850,000 $3,000,000

#1—March 1 160,000 800,000 -0- (800,000)

————————————————————————————————————

Balance 560,000 $2,800,000 $850,000 $2,200,000

#2—April 1 560,000 -0- -0- -0-

————————————————————————————————————

Balance 1,120,000 $2,800,000 $850,000 $2,200,000

#3—July 1 112,000 280,000 840,000 (1,120,000)

————————————————————————————————————

Balance 1,232,000 $3,080,000 $1,690,000 $1,080,000

#4—Aug. 1 -0- -0- -0- (123,200)

————————————————————————————————————

Balance 1,232,000 $3,465,000 $2,075,000 $956,800

#5—Nov. 1 -0- -0- -0 -0-

Balance 1,232,000 $3,080,000 $1,690,000 $956,800 ————————————————————————————————————

Part B $3,080,000 + $1,690,000 + 956,800 – $120,000 = $5,606,800

Baruch College – CUNY

Stan Ross Department of Accountancy

Accountancy 3100 - Section TR74 – C

Fall 2003 – Prof Jan Sweeney

Quiz 1-Solution

Q1

(a) Cash ................................................................................................... 60,000

Treasury Stock ...................................................................................... 58,000

Paid-in Capital from Treasury Stock ...................................................... 2,000

(b) Cash....................................................................................................... 20,800

Paid-in Capital from Treasury Stock ......................................................... 2,000

Retained Earnings……………………………………………….. 400

Treasury Stock ...................................................................................... 23,200

Q2

1. No entry necessary.

2. Land ...................................................................................................... 300,000

Common Stock ........................................................................................ 50,000

Paid-in Capital in Excess of Stated Value .................................................. 250,000

3. Cash ...................................................................................................... 550,000

Preferred Stock ........................................................................................ 500,000

Paid-in Capital in Excess of Par—Preferred Stock .................................... 50,000

4. Organization Expense ................................................................................ 10,000

Common Stock ........................................................................................ 1,000

Paid-in Capital in Excess of Stated Value .................................................. 9,000

Question 3 Part A

———————————————————————————————————————

Opening Balance 450,000 $2,250,000 $1,130,000 $3,000,000

#1—March 1 180,000 900,000 -0- (900,000)

————————————————————————————————————

Balance 630,000 $3,150,000 $1,130,000 $2,100,000

#2—April 1 630,000 -0- -0- -0-

————————————————————————————————————

Balance 1,260,000 $3,150,000 $1,130,000 $2,100,000

#3—July 1 126,000 315,000 945,000 (1,260,000)

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $840,000

#4—Aug. 1 -0- -0- -0- (138,600)

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $701,400

#5 – Nov.1 -0- -0- -0- -0-

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $701,400

Part B

Balance =$3,465,000 +$2,075,000+$701,400 - $150,000 = $6,091,400

Baruch College – CUNY

Stan Ross Department of Accountancy

Accountancy 3000 - Section TR74 – D

Fall 2003 – Prof Jan Sweeney

Quiz 1-Solution

Q1 1. No entry necessary.

2. Land ...................................................................................................... 300,000

Common Stock ........................................................................................ 50,000

Paid-in Capital in Excess of Stated Value .................................................. 250,000

3. Cash ...................................................................................................... 550,000

Preferred Stock ........................................................................................ 500,000

Paid-in Capital in Excess of Par—Preferred Stock .................................... 50,000

4. Organization Expense ................................................................................ 10,000

Common Stock ........................................................................................ 1,000

Paid-in Capital in Excess of Stated Value .................................................. 9,000

Question 2 Part A

———————————————————————————————————————

Opening Balance 450,000 $2,250,000 $1,130,000 $3,000,000

#1—March 1 180,000 900,000 -0- (900,000)

————————————————————————————————————

Balance 630,000 $3,150,000 $1,130,000 $2,100,000

#2—April 1 630,000 -0- -0- -0-

————————————————————————————————————

Balance 1,260,000 $3,150,000 $1,130,000 $2,100,000

#3—July 1 126,000 315,000 945,000 (1,260,000)

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $840,000

#4—Aug. 1 -0- -0- -0- (138,600)

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $701,400

#5 – Nov.1 -0- -0- -0- -0-

————————————————————————————————————

Balance 1,386,000 $3,465,000 $2,075,000 $701,400

Part B

Balance =$3,465,000 +$2,075,000+$701,400 - $150,000 = $6,091,400

Solution Q3

(a) Cash ................................................................................................... 60,000

Treasury Stock ...................................................................................... 58,000

Paid-in Capital from Treasury Stock ...................................................... 2,000

(b) Cash....................................................................................................... 20,800

Paid-in Capital from Treasury Stock ......................................................... 2,400

Retained Earnings……………………………………………….. 400

Treasury Stock ...................................................................................... 23,200 23,200