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2. Alpha issued 1,000 shares of $2 par value coesamon stock for S10 per share. The journal entry to record the issue of common stock

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2. Alpha issued 1,000 shares of $2 par value coesamon stock for S10 per share. The journal entry to record the issue of common stock is: A. Cash Common Stock 10,000 B. Cash 2,000 Paid-in Capital in Excess of Par Value 8,000 Common Stock 10,000 C. Cash Common Stock Retained Earnings 8,000 D. Cash Common Stock Paid-in Capital in Excess of Par Value 2,000 E. None of the above 3. A piece of equipment with a cost of s10,000, a usefiul life of 10 years, and salvage value of $2,000 is depreciated using the double-declining balance method. On the last day of the second year, the equipment is sold for $4,000. Using this information compute the gain or loss on the sale of the equipment A. $1,120 loss B. $1,400 gain C. $2.400 loss D. $3,120 loss E. None of the above 4. Alpha purchased $500 of merchandise on credit with terms 2/10, n/30. Assume that Alpha uses the periodic inventory system At the time of delivery, Alpha returned $100 of the merchandise and paid the balance owed (within the discount period in order to take the discount). The purchase had previously been recorded correctly. Select the sompound journal entry to record these transactions A Accounts Payable 500 Purchase Discounts 392 100 B Accounts Payable 400 Purchase Retarns& Alowances 100 100 C. Accounts Payable 500 Purchase Returns& Alowances100 390 10 PurdaDiscounts D Accounts Payable 500 Purchase Discounts Purchase Returas&Allow ances100 392 E. None of the above Alpha prepays all insurance premiums, and records these payments as a debit to Prepaid Insurance and a credit to Cash. During the year, Alpha's books coatained the following information 5. Prepaid Insurance, January 1 $ 55,000 163.000 72,000 Insurance expense (accrual basis) recognized during the y Prepaid Insurance, December 31 What was the total amount of cash paid by Alpha for insurance during the year? A. $180,000 B. S163,000 C. $154,000 D. $146,000 E. None of the above

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