1. A corporation borrowed $130,000 cash by signing a 5-year, 9% installment note requiring equal annual payments each December 31 of $33,422. What journal entry would the issuer record for the first payment?

Debit Interest Expense $11,700; debit Notes Payable $21,722; credit Cash $33,422.

Debit Notes Payable $33,422; credit Cash $33,422.

Debit Notes Payable $33,422; debit Interest Payable $11,700; credit Cash $45,122.

Debit Notes Payable $11,700; credit Cash $11,700.

Debit Interest Expense $7,422; debit Notes Payable $26,000; credit Cash $33,422.

2. On January 1, a company issues bonds dated January 1 with a par value of $380,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $396,210. The journal entry to record the issuance of the bond is:

Debit Cash $396,210; credit Premium on Bonds Payable $16,210; credit Bonds Payable $380,000.

Debit Cash $380,000; debit Premium on Bonds Payable $16,210; credit Bonds Payable $396,210.

Debit Bonds Payable $380,000; debit Bond Interest Expense $16,210; credit Cash $396,210.

Debit Cash $396,210; credit Bonds Payable $396,210.

Debit Cash $396,210; credit Discount on Bonds Payable $16,210; credit Bonds Payable $380,000.

3. A company has earnings per share of $10.00. Its dividend per share is $.70, its market price per share is $129.00, and its book value per share is $105. Its price-earnings ratio equals:

4. Wiggins Company has 1,300 shares of $100 par preferred stock. It also has 28,000 shares of common stock outstanding, and its total stockholders' equity equals $586,400. The book value per common share is:

$20.94.

$100.00.

$15.58.

$20.01.

$16.30.

5. A corporation issued 7,300 shares of $10 par value common stock in exchange for some land with a market value of $116,000. The entry to record this exchange is:

6. The following data has been collected about Keller Company's stockholders' equity accounts:

Common stock $10 par value 21,000 shares authorized and 10,500 shares issued, 1,100 shares outstanding	$105,000
Paid-in-capital in excess of par value, common stock	51,000
Retained earnings	26,000
Treasury stock	12,760

Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

10.

105,000.

9,400.

51,000.

26,000.