150 A cash register tape shows cash sales of $3,000 and sales taxes of $150. The journal entry to record this information is a. Cash 3,000 Sales 3,000 b. Cash 3,150 Sales Tax Revenue Sales 3,000 c. Cash 3,000 Sales Tax Expense 150 Sales 3,150 d. Cash 3,150 Sales Sales Taxes Payable 3.000 150 2. Ron's Pharmacy has collected $600 in sales taxes during March. If sales taxes must be remitted to the state government monthly, what entry will Ron's Pharmacy make to show the March remittance? Sales Tax Expense 600 Cash 600 b. Sales Taxes Payable 600 Cash 600 c. Sales Tax Expense 600 Sales Taxes Payable 600 d. No entry required. Readers Company typically sells subscriptions on an annual basis, and publishes eight times a year. The magazine sells 60,000 subscriptions in January at $10 each. What entry is made in January to record the sale of the subscriptions? a. Subscriptions Receivable 600,000 Subscription Revenue 600,000 b. Cash 600,000 Unearned Subscription Revenue 600,000 C. Subscriptions Receivable 75,000 Unearned Subscription Revenue 75,000 d. Prepaid Subscriptions 600,000 Cash 600,000 Spencer Corporation borrowed $300,000 from National Bank on May 31, 2009. The one year, 7% note required: Interest expense for the year ended December 31, 2009 was a. $12,250. b. $14,000 c. $21,000. d. $0. Which one of the following would not be considered an advantage of the corporate form of organization? a. Limited liability of stockholders b. Separate legal existence C. Continuous life d. Government regulation Which of the following statements is not considered a disadvantage of the corporate form of organization? Additional taxes b. Government regulations c. Limited liability of stockholders d. Separation of ownership and management a New Corp. issues 1,000 shares of $10 par value common stock at $14 per share. When the transaction is recorded, credits are made to: a. Common Stock $10,000 and Paid-in Capital in Excess of Stated Value $4,000. b. Common Stock $14,000. C. Common Stock $10,000 and Paid-in Capital in Excess of Par Value $4,000. d. Common Stock $10,000 and Retained Earnings $4,000. If common stock is issued for an amount greater than par value, the excess should be credited to a. Cash. b. Retained Earnings. C. Paid-in Capital in Excess of Par Value. d. Legal Capital. The board of directors of Essex Company declared a cash dividend on November 15, 20010, to be paid on December 15, 2010, to stockholders owning the stock on November 30, 2010. Given these facts, the date of November 30, 2010, is referred to as the a declaration date. b. record date. payment date. ex-dividend date. The board of directors of Weston Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2010. The dividend is to be paid on August 15, 2010, to stockholders of record on July 31, 2010. The correct entry to be recorded on July 15, 2010, will include a a. debit to Dividends Payable b. debit to Retained Earnings. C. credit to Cash d. credit to Retained Earnings. The board of directors of Weston Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2010 The dividend is to be paid on August 15, 2010, to stockholders of record on July 31, 2010. The correct entry to be recorded on August 15, 2010, will include a. b. C. d. debit to Retained Earnings. credit to Retained Earnings. credit to Cash Dividends Payable. debit to Cash Dividends Payable. Which of the following is not a significant date with respect to dividends? a. The declaration date b. The incorporation date c. The record date d. The payment date 13. On the statement of cash flows, the cash flows from operating activities section would include a. receipts from the issuance of capital stock. b. receipts from the sale of investments. c. payments for the acquisition of investments. d. cash receipts from sales activities. The payment of a cash dividend would be classified as an) a. operating activity. b. investing activity. financing activity d. significant noncash activity. Which of the following activities would be classified as an investing activity? a. Cash received from interest revenue. b. Cash paid (loaned) to a borrower as a loan. C. Cash received from dividend revenue. Cash paid to reacquire capital stock