This test hаs а time limit оf 40 minutes.This test cоnsists оf 10 multiple choice аnd 15 fill-in-the blank (code assignment) questions.Each question is worth 4 points.This test will save and submit automatically when the time expires.The timer will continue to run if you leave the test, so you should plan to take this test in one sitting.This test is due on July 20, 2026 11:59:00 PM EDT.The use of a secondary device (laptops, smartphones, smartwatches, tablets, etc.) is not allowed and considered a form of academic dishonesty and the consequences of doing so may result in a zero for a first offense and WF for repeated offenses. Honorlock flags students who are caught using a secondary device. Also prohibited are the following: notes, texts, online materials or other such unauthorized materials; for example, connecting with classmates by phone, email, Snapchat, GroupMe etc. while taking quizzes and tests.You are PERMITTED to use your CPT 2026 Coding Manual. This is the ONLY resource that may be used. You may use blank scratch paper to write down code possibilities.
Identifying аnd Anаlyzing Finаncial Statement Effects оf Stоck Transactiоns (FSET) The stockholders’ equity of Verrecchia Company at December 31 of the prior year follows. Common stock (1) $600,000 Paid-in capital in excess of par value 480,000 Retained earnings 276,800 (1) Common stock, $5 par value, 280,000 shares authorized; 120,000 shares issued and outstanding During the current year, the following transactions occurred. Jan. 5 Issued 8,000 shares of common stock for $12 cash per share. Jan. 18 Purchased 3,200 shares of common stock for the treasury at $14 cash per share. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $17 cash per share. Jul 17 Sold 400 shares of the remaining treasury stock for $13 cash per share. Oct. 1 Issued 4,000 shares of 8%, $25 par value preferred stock for $35 cash per share. This is the first issuance of preferred shares from 40,000 authorized shares. a. Using the financial statement effects template, illustrate the effects of each transaction. ● Note: Use negative signs with your answers, when appropriate. ● Note: Select "N/A" as your answer if a part of the accounting equation is not affected. Balance Sheet Income Statement Cash Noncash Contributed Earned Contra Net Transaction Asset + Assets = Liabilities + Capital + Capital - Equity Revenue - Expenses = Income Jan. 5 Issued common stock {#1} {#2} {#3} {#4} Common stock {#5} {#6} {#7} Jan. 18 Purchased common stock {#8} {#9} {#10} {#11} {#12} {#13} Mar. 12 Sold treasury shares {#14} {#15} {#16} {#17} {#18} {#19} {#20} {#21} Jul. 17 Sold treasury shares {#22} {#23} {#24} {#25} {#26} {#27} {#28} {#29} Oct. 1 Issued preferred stock {#30} {#31} {#32} {#33} Preferred stock {#34} {#35} {#36} b. Prepare the December 31 of the current year stockholders’ equity section of the balance sheet assuming that the company reports net income of $58,000 for the year. ● Note: Do not use negative signs with your answers. Stockholders’ Equity Paid in capital {#37} {#38} Additional paid-in capital {#39} {#40} {#41} {#42} {#43} Less: {#44} {#45} Capital stock disclosure: 8% preferred stock, ${#46} par value, {#47} shares authorized; {#48} shares issued and outstanding Common stock, ${#49} par value, {#50} shares authorized; {#51} shares issued, of which {#52} shares are in the treasury c. How will each transaction affect the calculation of basic EPS? Transaction Effect on EPS Jan. 5: Issued common stock {#53} Jan. 18: Purchased common stock {#54} Mar. 12: Sold treasury shares {#55} Jul. 17: Sold treasury shares {#56} Oct. 1: Issued preferred stock {#57}
Anаlyzing аnd Identifying Finаncial Statement Effects оf Stоck Transactiоns (FSET) The stockholders’ equity section of Gupta Company at December 31, 2021, follows. 8% preferred stock, $25 par value, 50,000 shares authorized; Shares issued and outstanding $255,000 Common stock, $10 par value, 200,000 shares authorized; Shares issued and outstanding (2) 750,000 Paid-in capital in excess of par value—preferred stock 102,000 Paid-in capital in excess of par value—common stock 300,000 Retained earnings 405,000 (1) 10,200 shares at $25 par value (2) 75,000 shares at $10 par value During 2022, the following transactions occurred: Jan. 10 Issued 42,000 shares of common stock for $17 cash per share. Jan. 23 Purchased 12,000 shares of common stock for the treasury at $19 cash per share. Mar. 14 Sold one-half of the treasury shares acquired January 23 for $21 cash per share. July 15 Issued 4,800 shares of preferred stock for $192,000 cash. Nov. 15 Sold 1,500 of the treasury shares acquired January 23 for $24 cash per share. FSET Impact on Basic EPS Presentation of Stockholders' Equity a. Using the financial statement effects template, illustrate the effects of each transaction. NOTE: Use negative signs with your answers, when appropriate. NOTE: Select "N/A" as your answer if a part of the accounting equation is not affected. Balance Sheet Income Statement Cash Noncash Contributed Earned Contra Net Transaction Asset + Assets = Liabilities + Capital + Capital - Equity Revenue - Expenses = Income Issuance of common stock shares. {#1} {#2} {#3} {#4} {#5} {#6} Common stock {#7} {#8} {#9} {#10} Purchase of common stock shares. {#11} {#12} {#13} {#14} {#15} {#16} {#17} {#18} Sale of one-half of the treasury shares. {#19} {#20} {#21} {#22} {#23} {#24} {#25} {#26} {#27} {#28} Issuance of preferred stock shares. {#29} {#30} {#31} {#32} {#33} Preferred stock {#34} {#35} {#36} {#37} Second sale of treasury shares. {#38} {#39} {#40} {#41} {#42} {#43} {#44} {#45} {#46} {#47} b. Indicate the impact of each transaction on the calculation of basic EPS. Jan. 10 {#48} Jan. 23 {#49} Mar. 14 {#50} Jul. 15 {#51} Nov. 15 {#52} c. Prepare the December 31, 2022, stockholders’ equity section of the balance sheet assuming the company reports 2022 net income of $88,500. Note: Use negative signs with your answers, when appropriate. Gupta Company Stockholders' Equity Dec. 31, 2022 Paid-in capital 8% Preferred stock ${#53} Common stock {#54} Additional paid-in capital Paid-in capital in excess of par value- Preferred stock {#55} Paid-in capital in excess of par value- Common stock {#56} Paid-in capital from Treasury stock {#57} Total paid-in capital Retained Earnings {#58} Treasury stock at cost {#59} Total stockholders' equity
Identifying аnd Anаlyzing Finаncial Statement Effects оf Stоck Transactiоns Following is the stockholders’ equity of Dennis Corporation at December 31 of the previous year. Preferred stock (1) $280,000 Common stock (2) 400,000 Paid-in capital in excess of par value—preferred stock 56,000 Paid-in capital in excess of par value—common stock 308,000 Retained earnings 190,400 Total stockholders’ equity $1,234,400 (1) 8% preferred stock, $50 par value, 8,000 shares authorized; 5,600 shares issued and outstanding (2) Common stock, $20 par value, 40,000 shares authorized; 20,000 shares issued and outstanding The following transactions, among others, occurred during the current year. Jan. 15 Issued 800 shares of preferred stock for $62 cash per share. Jan. 20 Issued 3,200 shares of common stock at $36 cash per share. May 18 Announced a 2-for-1 common stock split, reducing the par value of the common stock to $10 per share. The authorization was increased to 80,000 shares. June 1 Issued 1,600 shares of common stock for $48,000 cash. Sept. 1 Purchased 2,000 shares of common stock for the treasury at $18 cash per share. Oct. 12 Sold 720 treasury shares at $21 cash per share. Dec. 22 Issued 400 shares of preferred stock for $59 cash per share. a. Prepare the journal entries for these transactions. ● Note: If a journal entry isn't required on any of the dates shown, select "N/A—debit" and "N/A—credit" as the account names and leave the Dr. and Cr. answers blank (zero). Date Account Debit Credit Jan. 15 {#1} {#2} {#3} Jan. 20 {#4} {#5} {#6} May 18 {#7} {#8} Jun. 1 {#9} {#10} {#11} Sep. 1 {#12} {#13} Oct. 12 {#14} {#15} {#16} Dec. 22 {#17} {#18} {#19} b. Post the journal entries to the related T-accounts. ●Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash {#20} {#21} {#22} {#23} {#24} {#25} {#26} {#27} Common stock {#28} {#29} {#30} {#31} Preferred stock {#32} {#33} {#34} {#35} Additional paid-in capital {#36} {#37} {#38} {#39} {#40} {#41} {#42} {#43} {#44} {#45} Retained Earnings {#46} {#47} Treasury stock {#48} {#49} {#50} {#51}