1.) What is the total stockholders' equity based on the following data?

Common Stock	$1,047,000
Excess of Issue Price over Par	291,700
Retained Earnings (deficit)	(51,860)

a.$703,440

b.$1,338,700

c.$1,286,840

d.$1,390,560

2.) Balance sheet and income statement data indicate the following:

Bonds payable, 6% (this is Year 4 of 20 years)	$1,200,000
Preferred 8% stock, $100 par
(no change during the year)	200,000
Common stock, $50 par
(no change during the year)	1,000,000
Income before income tax for year	340,000
Income tax for year	80,000
Common dividends paid	60,000
Preferred dividends paid	16,000

Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?

a.4.83

b.4.72

c.5.72

d.6.83

3.)

On January 1, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. The December 31, Year 1, carrying amount in the amortization table for this installment note will be equal to

a.$48,620

b.$36,821

c.$27,635

d.$40,201

4.)

Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $800,000 and pay interest every January 1 and July 1. The bonds were sold for $690,960 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of

a.$48,000

b.$24,000

c.$55,277

d.$27,638

5.)

Merchant Company issued 10-year bonds on January 1. The 15% bonds have a face value of $100,000 and pay interest every January 1 and July 1. The bonds were sold for $117,205 based on the market interest rate of 12%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of

a.$7,032

b.$8,790

c.$14,065

d.$7,500