21. Staples Corporations December 31, 2020 balance sheet showed the following:

8% preferred stock, $10 par value, cumulative, 20,000 shares

authorized; 15,000 shares issued $ 150,000

Common stock, $10 par value, 2,000,000 shares authorized;

1,950,000 shares issued, 1,930,000 shares outstanding 19,500,000

Paid-in capital in excess of parcommon stock 24,000,000

Retained earnings 7,650,000

Treasury stock (20,000 shares) 630,000

Staples total stockholders equity was

a. $50,670,000.

b. $43,710,000.

c. $51,360,000.

d. $50,730,000.

22. On January 1, 2020, Smith Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Smith Company has a calendar year end.

What is the entry to record the interest accrual on December 31?

a. Cash....................................................................................... 30

Interest Revenue.......................................................... 30

b. Cash....................................................................................... 60

Interest Revenue.......................................................... 60

c. Interest Receivable................................................................ 30

Interest Revenue.......................................................... 30

d. Interest Receivable................................................................ 60

Interest Revenue.......................................................... 60

23. Perez Corporation sells 200 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $25 a share. Perez sold the shares for $40 a share. The entry to record the sale is

a. Cash....................................................................................... 5,000

Loss on Sale of Stock Investments ...................................... 3,000

Stock Investments ....................................................... 8,000

b. Stock Investments ................................................................ 8,000

Cash ............................................................................. 8,000

c. Cash....................................................................................... 8,000

Gain on Sale of Stock Investments ............................. 3,000

Stock Investments ....................................................... 5,000

d. Cash....................................................................................... 8,000

Stock Investments ....................................................... 8,000

24. Andi Industries owns 10% of Stevens Company. For the current year, Stevens reports net income of $250,000 and declares and pays a $60,000 cash dividend. Which of the following correctly presents the journal entries of Andis Industries regarding Stevens net income and the receipt of dividends from Stevens?

a. Dec. 31 Stock Investments.................................... 25,000

Revenue from Stock Investments . 25,000

Dec. 31 Cash.......................................................... 25,000

Stock Investments.............................. 25,000

b. Dec. 31 Stock Investments....................................... 6,000

Revenue from Stock Investments . 6,000

Dec. 31 Cash............................................................ 6,000

Stock Investments................................. 6,000

c. Dec. 31 Cash ....................................... 6,000

Dividend Income 6,000

25. Jimmy Company acquires 60, 8%, 5 year, $1,000 Community bonds on January 1, 2020 for $60,000.

If Jimmy sells all of its Community bonds for $64,500, what gain or loss is recognized?

a. Loss of $9,300

b. Loss of $4,500

c. Gain of $9,300

d. Gain of $4,500