1. Norton Co. was organized on January 2 of the current year, with 500,000 authorized shares of $10 par value common stock. Norton then had the following capital transactions during the year:

January 5 -issued 375,000 shares at $14 per share.

July 27 - purchased 25,000 shares at $11 per share

November 25 - sold 15,000 shares of treasury stock at $13 per share.

Norton used the cost method to record the purchase of the treasury shares. What would the balance in the Paid-in Capital from Treasury Stock account at December 31? Group of answer choices

$0.

$15,000.

$30,000.

$45,000.

2. Houghton Company issues $10,000,000, 6%, 5-year bonds on January 1. The bonds pays interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds (market price) from the bond issue?

2.5% 3.0% 5.0% 6.0%

Present value of a single sum for 5 periods .88385 .86261 .78353 .74726

Present value of a single sum for 10 periods .78120 .74409 .61391 .55839

Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236

Present value of an annuity for 10 periods 8.75206 8.53020 7.72173 7.36009

Group of answer choices

$10,000,000

$10,432,988

$10,437,618

$10,434,616

3. Short-term obligations may be excluded from current liabilities if which of the following conditions are met:

Group of answer choices

A. The liability is contractually due to be settled more than one year (or operating cycle, if longer) after the balance sheet date.

B. The entity has a contractual right to defer settlement of the liability for at least one year (or operating cycle, if longer) after the balance sheet date.

C. neither A or B.

D. both A and B.

True or False

4. If the market rate is greater than the stated rate, bonds will be sold at a premium.