A corporation has paid estimated income taxes of $80,000 during the year 2013. At the end of the year, the corporation's tax bill is computed to be $100,000. What is the income tax due/refundable?

$20,000 refund

$20,000 due

$0

None of the above

Which of the following statements is not correct?

Corporations must estimate and prepay their income taxes through quarterly tax deposits.

At the end of the year, when the worksheet is prepared, the Income Tax Expense account is adjusted only if the corporation owes additional taxes.

Income Tax Expense may be shown as an operating expense on a corporation's income statement.

On a corporate income statement, the tax effects of each extraordinary item is offset against each gain or loss to show the effect net of taxes.'

The Paid-in Capital in Excess of Par ValuePreferred Stock account would be shown in the

Assets section of the balance sheet.

Stockholders' Equity section of the balance sheet.

Revenue section of the income statement.

Expense section of the income statement.

Which of the following statements is not correct?

Retained earnings represents a cash fund.

A corporation can have a large cash balance but no retained earnings.

A corporation can have a balance in the Retained Earnings account but no cash.

Retained earnings represent the undistributed profits and losses of the corporation.

The entry to record the issuance of 1,000 shares of $10 par-value common stock for $14 a share consists of a debit to Cash for $14,000 and a credit to Common Stock for

$14,000

$10,000 and a credit to Gain on Sale of Common Stock for $4,000.

$10,000 and a credit to Paid-in Capital in Excess of Par ValueCommon Stock for $4,000.

$10,000 and a credit to Treasury Stock for $4,000.

A corporation received a subscription for 1,000 shares of 10 percent, $100 par-value preferred stock at $103 a share. The entry to record this transaction consists of a debit to Subscriptions ReceivablePreferred for $103,000 and a credit to

Preferred Stock for $100,000 and a credit to Retained Earnings for $3,000.

Preferred Stock Subscribed for $100,300.

Preferred Stock Subscribed for $100,000 and a credit to Paid-in Capital in Excess of Par ValuePreferred Stock for $3,000.

Preferred Stock Subscribed for $100,000 and a credit to Gain on Sale of Preferred Stock for $3,000.

The entry to record the issuance of 1000 shares of $2 stated-value common stock for $10 a share consists of a debit to Cash for $10,000 and a credit to Common Stock for

$10,000.

$2,000 and a credit to Paid-in Capital in Excess of Par ValueCommon Stock for $8,000.

$2,000 and a credit to Paid-in Capital in Excess of Stated ValueCommon Stock for $8,000.

$2,000 and a credit to Gain On Sale of Common Stock for $8,000.