Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4.Which of the following would reduce total stockholder's equity? A. $10 par common stock issued for $25 a share B. Net income earned for the

4.Which of the following would reduce total stockholder's equity?

A. $10 par common stock issued for $25 a share

B. Net income earned for the year of $250,000

C. Payment to a creditor of $ 20,000

D. Repurchase of common stock (Known as treasury stock )

5.In 2019, a lawsuit was against Peach Inc. It is probable that Peach Inc. will lose the lawsuit and the amount of loss can be reasonably estimated at $150,000How should Peach Inc. handle this loss contingency their financial records?

A. Accrue the loss and disclose in the notes

B. Disclose in the notes and do not record an accrual

C. Do nothing

D. Wait to see the outcome of the lawsuit before notifying users or recording a journal entry

12. Which of the following assets would be included in the long-term investment section of the balance sheet?

A. Investment in debt securities that is expected to be held to maturity (assuming held to maturity is greater than one year)

B. Investment in debt securities that is expected to be held to maturity when maturity is in 9 months

C. Accounts receivable

D. Marketable securities

33. Which of the following assets would be included in the property, plant, and equipment section of the balance sheet?

A. A building purchased for investment purposes .

B. A used computer purchased for use in the operations of the business with a useful life of 10 months

C. A patent with a useful life of 25 years .

D. Equipment purchased for use in the operations of the business which has a useful life of 15 years

15.Rhyne Company had the following Shareholder's Equity accounts on their balance sheet:

Retained Earnings -$100,000

Additional Paid in Capital on Common Stock -$50,000

Common Stock -$20,000

Accumulated other comprehensive loss- $20,000

What is the total contributed capital that should be reported on Rhyne Companies balance sheet? (Show work)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, Maureen Sterling

7th Canadian Edition

1260065952, 978-1260065954

More Books

Students also viewed these Accounting questions

Question

Where does the person work?

Answered: 1 week ago

Question

Does the duty to accommodate apply in this case?

Answered: 1 week ago