ANSWER ALL QUESTIONS WITHOUT SHOWING YOUR WORK

Unearned Revenues is in the form of: *

A contingency that is reasonably likely to occur

Advanced payment by customer

An oral agreement

A standing agreement

On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4- months, 5%, $30,000 interest bearing note. On payment date the records in the books of Alex Company should be: *

Debit Interest Expense and credit Cash.

Debit Notes Payable and credit Cash

Debit Notes Payable and Interest Expense, credit Cash

Debit Interest Expense, credit Cash and Notes Payable

Dan Corp. issues 150,000 shares of $3 par value common stock. Journalize entry will be *

Debit Common Stock $450,000 and credit Cash $450,000

Debit Cash $150,000 and credit Common Stock $150,000

Debit Cash $450,000 and credit Common Stock $450,000

Debit Common Stock $150,000 and credit Cash $150,00

Issued stock: *

Is the total number of shares sold.

Is the repurchased shares.

Is the maximum number of shares that can be sold.

Is the difference between shares issued and treasury shares.

Boundy Company made cash sales revenue of $20,600 on June 1, 2020 plus 3% sales tax. Sales Taxes amount is: *

$20,600

$20,618

$618

$600

Dan Corp. issued 5,000 shares of common stock at a stated value of $5 per share, where stock was sold for $15 per share. The journal entry to record this transaction would include: *

Credit to Cash for $75,000

Credit to Common Stock for $25,000

Debit Paid-in Capital in Excess of Par Value for $25,000

Credit to Common Stock for $75,000

Which of the following statements is wrong? *

Common stock can be issued at market value equal to par value or stated value.

If the issuance of common stock is at a market value higher than par or stated, the difference will not be recorded as paid in capital.

Preferred stock can be issued at market value greater than or equal par value or stated value.

None of the above

Lili Companys products are subject to a 1-year warranty. During 2019, the company sold 300,000 units, of which the company estimates 4% will be defective. During the year, the company honored warranty contracts for 6,000 units. If warranty expense for 2019 is $72,000, the cost to repair each unit is: *

$6

$7

$8

$9

Dan Corp issues 500 of 10%, $100 par value preferred stock to attorneys who helped the company organize. Attorneys valued their service at $100,000. Expense should be recorded as: *

Debit $100,000

Credit $100,000

Debit $50,000

Credit $50,000

A potential liability that may occur in the future *

Current Liability

Unearned Revenue

Working Capital

Contingent Liability

Dan Corp issues 500 of 10%, $100 par value preferred stock to attorneys who helped the company organize. Attorneys valued their service at $100,000. Paid in Capital amount is: *

$50,000

$100,000

$130,000

$230,000

Which of the following is classified as current liabilities? *

Notes receivable

Prepaid expenses

Accounts Receivables

Accounts Payable

Dan Corp issues 3,000 shares of 10%, preferred stock. The Cash amount is $450,000; in this case the market value is: *

$10

$100

$120

$150

On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4- months, 5%, $30,000 interest bearing note. Interest Expense is: *

$500

$800

$30,500

$30,800

Lili Companys products are subject to a 1-year warranty. During 2019, the company sold 300,000 units, of which the company estimates 4% will be defective. During the year, the company honored warranty contracts for 6,000 units. When honoring warranty contracts, the company must *

Debit Warranty Liability and credit Repair Parts

Debit Repair Parts and credit Warranty Liability

Debit Warranty Expense and credit Warranty Liability

Debit Warranty Liability and credit Warranty Expense

On July 1, 2019, Alex Company borrows $30,000 from City Bank and signs a 4- months, 5%, $30,000 interest bearing note. The payment date is *

October 1, 2019

November 1, 2019

December 1, 2019

January 1, 2020

Dan Corp issues 500 of 10%, $100 par value preferred stock to attorneys who helped the company organize. Attorneys valued their service at $100,000. Preferred Stock should be recorded as: *

Debit $50,000

Credit $50,000

Debit $130,000

Credit $130,000

Which of the following represents the number of shares repurchased from the market? *

Treasury shares

Issued shares

Outstanding shares

Authorized shares

The sale of common stock below par: *

Is a common occurrence

Is not permitted

Is a practice that most shareholders encourage

Requires that a liability be recorded for the difference between the sales price and the par value of the shares.