1 Which of the following general ledger accounts is a temporary account a Prepaid Expense b Supplies c Supplies Expense d Accumulated Depreciation 2 A debit entry would cause a decrease in which of the following accounts a Treasury stock b Additional paid in capital common stock c Sales expense d Accounts receivable 3 A debit entry would cause an increase in which of the following accounts a Accounts payable b Depreciation expense c Sales revenue d Common stock 4 Which of the following is the best description of retained earnings a the residual interest when liabilities are deducted from assets b earned equity minus what is distributed to owners c investments by owners d probable future sacrifices of economic benefits arising from present obligations Classify the accounts below using these codes a Asset d Revenue or gain b Liability e Expense or loss c Equity or Contra equity 5 Common stock 6 Accounts receivable 7 Treasury stock 8 A corporation issues 1,000 shares of common stock for $40,000 The stock has a par value of $10 per share The journal entry to record the stock issuance would include a credit to Common Stock for a $1,000 b $10,000 c $40,000 d $30,000 9 The outstanding stock of a corporation is composed of 500,000 shares of $10 par, cumulative preferred 8 stock, and 50,000 shares of $1 par common stock Calculate the dollar amount of annual cash dividends that are to be paid to preferred shareholders a $50,000 b $450,000 c $400,000 d $80,000 10 A corporation reacquires 1,000 shares of its own $25 par common stock for $45,000, recording it at cost What effect does this transaction have on stockholders' equity a It increases stockholders' equity by $45,000 b It has no effect on stockholders' equity c It reduces stockholders' equity by $25,000 d It reduces stockholders' equity by $45,000 11 The net effect to a corporation of the declaration and payment of a cash dividend is to a increase stockholders' equity and decrease liabilities b decrease liabilities and decrease stockholders' equity c increase assets and increase stockholders' equity d decrease assets and decrease stockholders' equity 12 A corporation has 40,000 shares of $25 par value stock outstanding If the corporation issues a 4 for 1 stock split, the number of shares outstanding after the split will be a 120,000 shares b 40,000 shares c 160,000 shares d 10,000 shares XYZ Company acquired from shareholders 1000 shares of treasury stock for $25 per share XYZ reissued the same 1000 shares of treasury stock for $28 per share Par value of the stock is $10 per share 13 The journal entry to record the acquistion of the treasury stock would include the following a a debit to Cash of $28,000 b a debit to Cash of $25,000 c a credit to Treasury Stock of $25,000 d a debit to Treasury Stock of $10,000 e a credit to Cash of $25,000 14 The journal entry to record the reissuance of the 1000 shares of treasury stock would include the following a a debit to Cash of $28,000 b a debit to Cash of $25,000 c a credit to Treasury Stock of $28,000 d a debit to Treasury Stock of $28,000 e a credit to Paid In Capital from Sale of Treasury Stock of $28,000 15 A corporation has 250,000 shares of ($60 par) common stock authorized and 100,000 shares of common stock issued at par Seventeen thousand, five hundred (17,500) shares of common (stock have been reacquired for $65 per share and placed in the treasury What amounts should be reported in the Common Stock and Treasury Stock accounts a Common Stock $6,000,000 credit and Treasury Stock $1,137,500 debit b Common Stock $15,000,000 credit and Treasury Stock $1,137,500 debit c Common Stock $15,000,000 credit and Treasury Stock $1,050,000 debit d Common Stock $6,000,000 debit and Treasury Stock $1,137,500 credit 16 Bonds that are unsecured but are backed by the general credit of the issuing corporation are called a assurance bonds b coupon bonds c bearer bonds d debenture bonds 17 A bond indenture may require the bond issuer to set aside amounts to pay the bond's face amount at maturity The amounts are place in a separate asset account called a a superfund b sinking fund c indenture fund d debenture fund 18 A corporation may issue callable bonds to protect itself against significant a increases in future interest rates b changes in the federal funds rate c decreases in future interest rates d changes in present value tables 19 A corporation issued $1,000,000 of 11 , five year bonds that pay semiannual interest of $55,000, receiving cash of $1,038,606 At issuance, the corporation should record a a debit to Bonds Payable of $1,038,606 b a credit to Bonds Payable of $1,038,606 c a credit to Bonds Payable of $1,000,000 d a credit to Cash of $1,000,000

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1.Which of the following general ledger accounts is a temporary account? a Prepaid Expense b Supplies c Supplies Expense d Accumulated Depreciation 2.A debit entry

1.Which of the following general ledger accounts is a temporary account?

a Prepaid Expense b Supplies c Supplies Expense d Accumulated Depreciation

2.A debit entry would cause a decrease in which of the following accounts?

a Treasury stock b Additional paid-in-capital - common stock c Sales expense d Accounts receivable

3 A debit entry would cause an increase in which of the following accounts?

a Accounts payable b Depreciation expense c Sales revenue d Common stock

4. Which of the following is the best description of "retained earnings"?

a the residual interest when liabilities are deducted from assets b earned equity minus what is distributed to owners c investments by owners d probable future sacrifices of economic benefits arising from present obligations

Classify the accounts below using these codes:

a Asset d Revenue or gain b Liability e Expense or loss c Equity or Contra-equity

5. _______Common stock

6._________Accounts receivable

7._______Treasury stock

8. A corporation issues 1,000 shares of common stock for $40,000. The stock has a par value of $10 per share. The journal entry to record the stock issuance would include a credit to Common Stock for

a $1,000 b $10,000 c $40,000 d $30,000

9. The outstanding stock of a corporation is composed of 500,000 shares of $10 par, cumulative preferred 8% stock, and 50,000 shares of $1 par common stock. Calculate the dollar amount of annual cash dividends that are to be paid to preferred shareholders.

a $50,000 b $450,000 c $400,000 d $80,000

10.A corporation reacquires 1,000 shares of its own $25 par common stock for $45,000, recording it at cost. What effect does this transaction have on stockholders' equity?

a It increases stockholders' equity by $45,000. b It has no effect on stockholders' equity. c It reduces stockholders' equity by $25,000. d It reduces stockholders' equity by $45,000.

11. The net effect to a corporation of the declaration and payment of a cash dividend is to

a increase stockholders' equity and decrease liabilities b decrease liabilities and decrease stockholders' equity c increase assets and increase stockholders' equity d decrease assets and decrease stockholders' equity

12. A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be

120,000 shares b 40,000 shares c 160,000 shares d 10,000 shares

XYZ Company acquired from shareholders 1000 shares of treasury stock for $25 per share. XYZ reissued the same 1000 shares of treasury stock for $28 per share. Par value of the stock is $10 per share.

13.The journal entry to record the acquistion of the treasury stock would include the following:

a a debit to Cash of $28,000 b a debit to Cash of $25,000 c a credit to Treasury Stock of $25,000 d a debit to Treasury Stock of $10,000 e a credit to Cash of $25,000

14.The journal entry to record the reissuance of the 1000 shares of treasury stock would include the following:

a a debit to Cash of $28,000 b a debit to Cash of $25,000 c a credit to Treasury Stock of $28,000 d a debit to Treasury Stock of $28,000 e a credit to Paid-In Capital from Sale of Treasury Stock of $28,000

15.A corporation has 250,000 shares of ($60 par) common stock authorized and 100,000 shares of common stock issued at par. Seventeen-thousand, five-hundred (17,500) shares of common (stock have been reacquired for $65 per share and placed in the treasury. What amounts should be reported in the Common Stock and Treasury Stock accounts?

a Common Stock $6,000,000 credit and Treasury Stock $1,137,500 debit b Common Stock $15,000,000 credit and Treasury Stock $1,137,500 debit c Common Stock $15,000,000 credit and Treasury Stock $1,050,000 debit d Common Stock $6,000,000 debit and Treasury Stock $1,137,500 credit

16. Bonds that are unsecured but are backed by the general credit of the issuing corporation are called:

a assurance bonds b coupon bonds c bearer bonds d debenture bonds

17. A bond indenture may require the bond issuer to set aside amounts to pay the bond's face amount at maturity. The amounts are place in a separate asset account called a

a superfund b sinking fund c indenture fund d debenture fund

18. A corporation may issue callable bonds to protect itself against significant

a increases in future interest rates b changes in the federal funds rate c decreases in future interest rates d changes in present value tables

19. A corporation issued $1,000,000 of 11%, five-year bonds that pay semiannual interest of $55,000, receiving cash of $1,038,606. At issuance, the corporation should record:

a a debit to Bonds Payable of $1,038,606. b a credit to Bonds Payable of $1,038,606. c a credit to Bonds Payable of $1,000,000. d a credit to Cash of $1,000,000.