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17. Use 2010, Falcon Corporation had 40,000 shares of $10 par value common stock issued and All 40,000 shares had been issued in a prior

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17. Use 2010, Falcon Corporation had 40,000 shares of $10 par value common stock issued and All 40,000 shares had been issued in a prior period at $17 per share. On February 1, 201o. for $19 per share and later sold the trea ury shares for the following information to answer the question below Falcon purchased 1,000 shares of treasury stock $26 per share on March 2, 2010. entry to record the sale of the treasury shares on March 2, 2010 is a. Cash 26,000 Common Stock Retained Earnings 19,000 7,000 24,000 2,000 b. Cash Retained Earnings 26,000 Treasury Stock, Common c. Cash 26,000 Treasury Stock, Common Gain on Treasury Stock, Common 19,000 7,000 d. Cash Treasury Stock, Common Paid-in Capital, Treasury Stock 19,000 7,000 e. none of the above Any unamortized bond discount should be reported on the balance sheet of the issuing corporation as a(n) a. asset b. 18. direct deduction from retained earnings in the stockholders' equity section. addition to the face amount of the bonds in the liability section. c. d. e. direct deduction from the face amount of the bonds in the liability section. none of the above On January 2, 2010, Barham Corporation issued ten-year bonds payable with a face value of $400,000 and a face interest rate of 9 percent. The bonds were issued to yield a market interest rate of 10 percent. Interest is payable semiannually on January 2 and July 1. In calculating the present value (price) of the bond issue on January 2, 2010, a. the 9 percent rate will be used to calculate the present value of the face amount and the 19. present value of the periodic interest payments. b. a 5 percent rate will be used to calculate the present value of the face amount and the c. the 10 percent rate will be used to calculate the present value of the face amount and the d. the 10 percent rate will be used to calculate the present value of the face amount and a 5 percent rate will be used to calculate the present value of the periodic interest payments present value of the periodic interest payments present value of the periodic interest payments e. none of the above

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