1 Dan Corp issues 60,000 of $3 stated value common stock for Building The building has a market value of $220,000 and asking price of $240,000 Paid in Capital amount is a $220,000 b $180,000 c $40,000 d $20,000 2 Unearned Revenues is in the form of a A contingency that is reasonably likely to occur b Advanced payment by customer c An oral agreement d A standing agreement 3 On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4 months, 5 , $30,000 interest bearing note On payment date the records in the books of Alex Company should be a Debit Interest Expense and credit Cash b Debit Notes Payable and credit Cash c Debit Notes Payable and Interest Expense, credit Cash d Debit Interest Expense, credit Cash and Notes Payable 4 Dan Corp issues 150,000 shares of $3 par value common stock Journalize entry will be a Debit Common Stock $450,000 and credit Cash $450,000 b Debit Cash $150,000 and credit Common Stock $150,000 c Debit Cash $450,000 and credit Common Stock $450,000 d Debit Common Stock $150,000 and credit Cash $150,00 5 Issued stock a Is the total number of shares sold b Is the repurchased shares c Is the maximum number of shares that can be sold d Is the difference between shares issued and treasury shares 6 Boundy Company made cash sales revenue of $20,600 on June 1, 2020 plus 3 sales tax Sales Taxes amount is a $20,600 b $20,618 c $618 d $600 7 Dan Corp issued 5,000 shares of common stock at a stated value of $5 per share, where stock was sold for $15 per share The journal entry to record this transaction would include a Credit to Cash for $75,000 b Credit to Common Stock for $25,000 c Debit Paid in Capital in Excess of Par Value for $25,000 d Credit to Common Stock for $75,000 8 Which of the following statements is wrong a Common stock can be issued at market value equal to par value or stated value b If the issuance of common stock is at a market value higher than par or stated, the difference will not be recorded as paid in capital c Preferred stock can be issued at market value greater than or equal par value or stated value d None of the above 9 Lili Companys products are subject to a 1 year warranty During 2019, the company sold 300,000 units, of which the company estimates 4 will be defective During the year, the company honored warranty contracts for 6,000 units If warranty expense for 2019 is $72,000, the cost to repair each unit is a $6 b $7 c $8 d $9 10 Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize Attorneys valued their service at $100,000 Expense should be recorded as a Debit $100,000 b Credit $100,000 c Debit $50,000 d Credit $50,000 11 A potential liability that may occur in the future a Current Liability b Unearned Revenue c Working Capital d Contingent Liability 12 Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize Attorneys valued their service at $100,000 Paid in Capital amount is a $50,000 b $100,000 c $130,000 d $230,000 13 Which of the following is classified as current liabilities a Notes receivable b Prepaid expenses c Accounts Receivables d Accounts Payable 14 Dan Corp issues 3,000 shares of 10 , preferred stock The Cash amount is $450,000 in this case the market value is a $10 b $100 c $120 d $150 15 On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4 months, 5 , $30,000 interest bearing note Interest Expense is a $500 b $800 c $30,500 d $30,800 16 Lili Companys products are subject to a 1 year warranty During 2019, the company sold 300,000 units, of which the company estimates 4 will be defective During the year, the company honored warranty contracts for 6,000 units When honoring warranty contracts, the company must a Debit Warranty Liability and credit Repair Parts b Debit Repair Parts and credit Warranty Liability c Debit Warranty Expense and credit Warranty Liability d Debit Warranty Liability and credit Warranty Expense 17 On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4 months, 5 , $30,000 interest bearing note The payment date is a October 1, 2019 b November 1, 2019 c December 1, 2019 d January 1, 2020 18 Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize Attorneys valued their service at $100,000 Preferred Stock should be recorded as a Debit $50,000 b Credit $50,000 c Debit $130,000 d Credit $130,000 19 Which of the following represents the number of shares repurchased from the market a Treasury shares b Issued shares c Outstanding shares d Authorized shares 20 The sale of common stock below par a Is a common occurrence b Is not permitted c Is a practice that most shareholders encourage d Requires that a liability be recorded for the difference between the sales price and the par value of the shares

Question

1  Dan Corp  issues 60,000 of $3 stated value common stock for Building  The building has a market value of $220,000 and asking price of $240,000  Paid in Capital amount is    a  $220,000 b  $180,000 c  $40,000 d  $20,000 2  Unearned Revenues is in the form of    a  A contingency that is reasonably likely to occur b  Advanced payment by customer c  An oral agreement d  A standing agreement 3  On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4  months, 5 , $30,000 interest bearing note  On payment date the records in the books of Alex Company should be    a  Debit Interest Expense and credit Cash  b  Debit Notes Payable and credit Cash c  Debit Notes Payable and Interest Expense, credit Cash d  Debit Interest Expense, credit Cash and Notes Payable 4  Dan Corp  issues 150,000 shares of $3 par value common stock  Journalize entry will be   a  Debit Common Stock $450,000 and credit Cash $450,000 b  Debit Cash $150,000 and credit Common Stock $150,000 c  Debit Cash $450,000 and credit Common Stock $450,000 d  Debit Common Stock $150,000 and credit Cash $150,00 5  Issued stock    a  Is the total number of shares sold  b  Is the repurchased shares  c  Is the maximum number of shares that can be sold  d  Is the difference between shares issued and treasury shares  6  Boundy Company made cash sales revenue of $20,600 on June 1, 2020 plus 3  sales tax  Sales Taxes amount is    a  $20,600 b  $20,618 c  $618 d  $600 7  Dan Corp  issued 5,000 shares of common stock at a stated value of $5 per share, where stock was sold for $15 per share  The journal entry to record this transaction would include    a  Credit to Cash for $75,000 b  Credit to Common Stock for $25,000 c  Debit Paid in Capital in Excess of Par Value for $25,000 d  Credit to Common Stock for $75,000 8  Which of the following statements is wrong    a  Common stock can be issued at market value equal to par value or stated value  b  If the issuance of common stock is at a market value higher than par or stated, the difference will not be recorded as paid in capital  c  Preferred stock can be issued at market value greater than or equal par value or stated value  d  None of the above 9  Lili Companys products are subject to a 1 year warranty  During 2019, the company sold 300,000 units, of which the company estimates 4  will be defective  During the year, the company honored warranty contracts for 6,000 units  If warranty expense for 2019 is $72,000, the cost to repair each unit is    a  $6 b  $7 c  $8 d  $9 10  Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize  Attorneys valued their service at $100,000  Expense should be recorded as    a  Debit $100,000 b  Credit $100,000 c  Debit $50,000 d  Credit $50,000 11  A potential liability that may occur in the future   a  Current Liability b  Unearned Revenue c  Working Capital d  Contingent Liability 12  Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize  Attorneys valued their service at $100,000  Paid in Capital amount is    a  $50,000 b  $100,000 c  $130,000 d  $230,000 13  Which of the following is classified as current liabilities    a  Notes receivable b  Prepaid expenses c  Accounts Receivables d  Accounts Payable 14  Dan Corp issues 3,000 shares of 10 , preferred stock  The Cash amount is $450,000  in this case the market value is    a  $10 b  $100 c  $120 d  $150 15  On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4  months, 5 , $30,000 interest bearing note  Interest Expense is    a  $500 b  $800 c  $30,500 d  $30,800 16  Lili Companys products are subject to a 1 year warranty  During 2019, the company sold 300,000 units, of which the company estimates 4  will be defective  During the year, the company honored warranty contracts for 6,000 units  When honoring warranty contracts, the company must   a  Debit Warranty Liability and credit Repair Parts b  Debit Repair Parts and credit Warranty Liability c  Debit Warranty Expense and credit Warranty Liability d  Debit Warranty Liability and credit Warranty Expense 17  On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4  months, 5 , $30,000 interest bearing note  The payment date is   a  October 1, 2019 b  November 1, 2019 c  December 1, 2019 d  January 1, 2020 18  Dan Corp issues 500 of 10 , $100 par value preferred stock to attorneys who helped the company organize  Attorneys valued their service at $100,000  Preferred Stock should be recorded as    a  Debit $50,000 b  Credit $50,000 c  Debit $130,000 d  Credit $130,000 19 Which of the following represents the number of shares repurchased from the market    a  Treasury shares b Issued shares c  Outstanding shares d  Authorized shares 20  The sale of common stock below par    a  Is a common occurrence b  Is not permitted c  Is a practice that most shareholders encourage d  Requires that a liability be recorded for the difference between the sales price and the par value of the shares

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1. Dan Corp. issues 60,000 of $3 stated value common stock for Building. The building has a market value of $220,000 and asking price of

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