Accounting homework help

Student name:
Exam version MID TERM EXAM A
MCO103 Managerial Accounting Alain Berger
Fall AY 2020-2021
RULES & REGULATIONS
 The first 10 minutes of the exam session will be used to review the exam before commencing; a Q&A session is allowed during these 10 minutes. Students can ask their question and the professor’s response will be shared with the entire class. No disrupting the class after the first 10 minutes after the exam has been distributed.
 No student will be allowed in the exam session after 10 minutes.
 Students may only have a pen and calculator (if specified) on the desk. No extra paper, books, mobile phones, or electronic device is allowed. Any extra paper needed will be brought to you by the administration department upon request. All mobile phones should be switched off and students belongings on the floor at the front of the class; any person found with an unauthorized device, concealed or otherwise, will receive a zero on the exam.
 If a calculator has been authorized by the professor, then this must be a calculator. No cell phones, smart-phones or any electronic device of any sort will be permitted. In the case that a student has forgotten their calculator, they will be requested to do the calculations by hand or obtain one before the start time of the exam.
 Students may not leave the exam for any reason, should they insist of doing so they will not be allowed to return to the exam. Toilet issues should be addressed before the start of the exam; exams over 2 hours in duration, please leave your exam with the professor and ask to be escorted by an administration member to the bathroom.
 You may not leave the exam session during the last 15 minutes.
 Speaking is not allowed under any circumstances. Should a student be seen or heard communicating with another student, they will be disqualified for the session and awarded a zero for the exam.
 If a student is caught or suspected of cheating he or she will be sent to the administration department immediately and a disciplinary file will be opened. Cheating of any kind will result in a 0 and no retake will be allowed.
 If formulas are allowed in the exam, only professors may give the necessary information to the student either by writing on the board or handing them directly to the students. Students may not use their own notes unless specified ahead of time.
By signing this document, I verify that I have read the above rules and am aware of the consequences of not abiding by them. My exam will only be valid when signed.
Signature of Student Date
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INSTRUCTIONS
 Exam Structure: written  Material allowed: an independent calculator  Time: 90 minutes
GRADING
Sample:  Weights of exercises mentioned
EXAM QUESTIONS:
Problem 1 (35%) (every question worth 7%)
Shown below is information relating to the stockholders’ equity of Topaz Inc., at December 31, 2020:
10% cumulative preferred stock, $100 par, 100,000 shares authorized, 8,000 shares issued………………………………………… $ 800,000 Common stock, $3 par, 1,000,000 shares authorized, 700,000 shares issued and outstanding……………………………………………………. 2,100,000 Additional paid-in capital: preferred stock………………………………………………….. 600,000 Additional paid-in capital: common stock…………………………………………………… 700,000 Retained earnings…………………………………………………………………………………… 500,000
From the above information, compute the following:
1 The average issue price per share of common stock: $_____ per share
2 The total amount of paid-in capital: $__________
3 The average issue price per share of preferred stock: $_____ per share
4 The book value per share of common stock (assume current-year preferred dividends have been paid) $_____ per share
 
5 The balance in Retained Earnings at the beginning of the year was $650,000, and there were no dividends in arrears. Net income for 2020 was $475,000. What was the amount of dividend declared on each share of common stock during 2020? $_____ per share
 
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Problem 2 (35%) (every question worth 7%) Shown below are data taken from a recent annual report of, Topaz, Inc. (Dollar amounts in millions.) Beginning End
of Year of Year
Balance sheet data: Current assets……………………………………………………. $ 825 $900 Total assets……………………………………………………….. $1,075 $1,325 Current liabilities……………………………………………….. $475 $375 Total liabilities…………………………………………………… $500 $600 Total stockholders’ equity……………………………………. $575 $725
Income statement data: Net sales…………………………………………………………… $1,900 Gross profit……………………………………………………….. $700 Operating income………………………………………………. $450 Net income……………………………………………………….. $100
. Instructions Compute the following: a Current ratio at beginning of the year(round to nearest tenth) ________ to 1
b Working capital at year-end (in millions) $____________
c Gross profit rate for the year (round to the nearest 1 percent) ______%
d Return on average total assets for the year (round to the nearest 1 percent) ______%
e Return on average total equity for the year (round to the nearest 1 percent) ______%
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Problem 3 (30%) (every question worth 7.5%) On May 5, 2019, Lloyd purchased a machine for $114,000. The estimated life of the machine was 10 years,
with an estimated residual value of $10,000. The service life in terms of “output” is estimated at 12,000 hours of operation.
1 Refer to the above data. Assume Lloyd uses straight-line depreciation with the half-year convention. Depreciation expense to be recognized in 2019 and 2020 (the year of purchase and the following year) is:
2 Refer to the data above. Assume Lloyd uses 200%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2021 (the third year of ownership) is:
3 Refer to the data above. Assume Lloyd uses 150%-declining-balance depreciation with the half-year convention. Depreciation expense to be recognized in 2020 (the second year of ownership) is:
4 Refer to the data above. Assume Lloyd uses the units-of-output method and that the machine was in operation for 1,000 hours in 2019 and 1,800 hours in 2020. The book value of the machine at December 31, 2020 is:
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