ACCO 112-Partial Test l-workshop 7 Il. Exercise Complete the following sentences. (30 polinta) 1. A corporation has a separate 2. The apart from its owners feature of preferred stock gives the preferred stockholders the right to receive current-year dividends and unpaid prior-year dividends before common stockholders recelve ary dividends 3. The paid-in capital section of the balance sheet consists of two classifications 4. Par value of stock represents theper share that must be retained in the business for the protection of corporate 5. If stock is issued in exchange for noncash assets, the assets should be valued at the of the consideration or the assets whichever is more clearly evident. 6. A corporation's own stock that has been reacquired by the corporation but not canceled is called IV. Exercise-Select the correct answer. (10 points) 1. A $1,000 face value bond with a quoted price of 98 is selling for a. $1,000 b. $980. c $908 d. $98 2Abond wit h a face value of S200 000 and a quoted price of 102% has a selling price of a. $240,225. b. $204,025 c. $200,225. d. $204,250. 3. If the market interest rate is 5%, a $10,000 6% 10-year bond that pays interest annually would sell at an amount a. less than face value b. equal to face value. c greater than face value d. that cannot be determined. 4. On the date of issue, Radisch Corporation sells $5 million of 5-year bonds at 98. The entry to record the sa will include the following debits and credits: Bonds Payable $0 Dr $100,000 Dr $1,200,000 Dr. $10,000 Dr. a. $4,900,000 Cr. b. $5,000,000 Cr c. $4,900,000 Cr d. $5,000,000 Cr. Autumn Company purchased a building on January 2 by signing a long-term $630,000 mortgage with m payments of $5,400. The mortgage carries an interest rate of 10 percent The entry to record the first monthly payment will include a a. debit to the Cash account for $5,400. credit to the Cash account for $5,250. c. debit to the Interest Expense account for $5,250 d credit to the Mortgage Payable account for $5,400 b