As soon as possible

if shares are issued for a non-cash abset, the asset should be rocorded on the books of the comperation at: a. book value. b. cost. c. fair value. d. a nominal amount. 2. A Lawyer performed legat services for Canada Corp. Due to a cash shoriogo, an agrearnent was reached whereby Canada Corp, would pay the Lawyer a logal fee of approximately $20,000 by issuing 5,000 ordinary shares (par \$1). The shares trede on a dally basis and the market price of the shares on the doy the debt was settled is $3 per share. Given this information, the joumal entry for Canada Corp. to record this transaction is: a Legal Expense Share Capital-Ordinary 15,000 b. Legal Expense 20,000 Share Capital-Ordinary c. Legal Expense 20,000 Share Capital-Ordinary Share Premium-Ordinary d. Legal Expense 15,000 Share Capital-Ordinary Share Premium-Ordinary 15,000 20,000 5,000 15,000 5,000 10,000 3. Canada Company paid $60,000 to buy back 12,000 shares of its $1 par value ordinary shares. These shares were sold later at a selling price of $7 per share. The entry to record the sale includes a. debit to Share Premium-Treasury for $60,000. b. credit to Retained Earnings for $24,000. c. credit to Share Premium-Treasury for $24,000. d. debit to Retained Earnings for $60,000. Canada Corporation was organized on January 2, 2022. During 2022, Canada issued 20,000 shares at $32 per share, purchased 4,000 treasury shares at $26 per share, and had net income of $500,000. What is the total amount of equity at December 31,2022 ? a. $740,000 b. $1,060,000 c. $1,044,000 d. $1,036,000 Canada Corporation was organized on January 1,2022, with authorized capital of 750,000 ordinary shares with a 10 par value. During 2022, Canada issued 40,000 shares at 12 per share, purchased 4,000 treasury shares at 13 per share, and sold 4,000 treasury shares at 14 per share. What is the amount of total share premium at December 31,2022 ? a. 0 b. 4,000 c. 684,000 d. 80,000 Not income $450.000 An enalysin of the income statement revealed that interest expense was H60,000. The times interest earned was a. 11 times. b. 10 times. c. 8.6 times. d. 7,5 timen, 19. The debt to assets ratio measures a. the company's profitability. b. whether interest can be pald on debt in the current year. c. the percentage of the total assets provided by creditors. d. the proportion of interest paid relative to dividends paid. 20. Canada Company had 375,000 of current assets and 150,000 of current llabilities before borrowing 670,000 from the bank with a 3 -month note payable. What effect did the borrowing transaction have on the amount of Canada Company's working capital? a. 70,000 increase b. No effect c. 140,000 increase d. 70,000 decrease sell at an amount a. less than face value b. equal to face value e. greater than face value d. that cannot be determined. 13. Canada Corporation issues 2.000,10 year, 8,61,000 bonds dated 1 January 2022 , at 89 . The journal entry to record the issuance will shor a a. debit to Cash of 2,000,000. a debit to Bonds Payable for 40,000 c. credit to Bonds Payable for 2,0,040,000 d debit to Cash for $1,900.000 14. Canada Company punchased a bullding on 2 January by signing a longterm 630,000 mortoage Wish monthly payments of 65,400 . The mortgage carties an interest rale of 10 percert The entry to record the first monkhly payment wili include a a debit to the Cash account for 65.400 . b. credit to the Cash account for 5,250. c. debit to the Interest Expense account for 5,250 d. credit to the Mortgage Payabile account for 65,400 15. The arliusted trial balance for Canada Corp. at the end of the current year, 2020, coctained the The total noncur b. 1,935,000. c. 62,095,000. d. 62,085,000. 16. A liquidity ratio measures the a. income or operating success of an enterprise cver a period of time. b. abilty of the enterprise to survive over a long period of time. c. short-term ability of the enterprise to pay its maturing obligations and to meet unexpected d. number of times interest is earned. 17. Asset turnover measures a. how often a company replaces its assets. b. how efficently a company uses its assets to generate sales. c. the portion of the assets that have been financed by creditors. d. the overall rate of return on assets. a. Canada Corp. has 5,000 shares of 7%,100 par value, cumulative preference shares and 50,000 ordinary shares. with a e1 par value outstanding on 31 December 2022 . If the board of directors declares a 30,000 dividend, the a. preference shareholders will receive 1/1 oth of what the ordinary shareholders will receive. b. preforence shareholders will recelve the entre 30,000. c. 30,000 wil be held as restricted retained earnings and paid out at some future date. d preference shareholders wil recelvo 15,000 and the ordinary shareholders will recelve 15,000 7. On 1 January. Canada Corporation had 2,000,000 ordinary shares with a eio par value outstanding. On 31 March, the company declared a 20% share dividend. Market value of the shares was 615/ share. As a result of this event. a. Key's Share Premlum account increased 64,000,000. b. Key's total equity was unalfected c. Key's Share Capital account increased 6,000,000. d Alt of these answer choices are correct. 8. Share dividends and share splits have the following effects on retained earnings: Share Splits a. Increase b. No change c. Decrease d. No change Share Dividends No change Decrease Decrease No change 9. What is its ending retained earnngs palanve? a. $1,300 b. $1,400 c. $900 d. $1,200 10. Canada, Inc. had 500,000 ordinary shares outstanding before a share split occurred, and 1,500,000 shares outstanding after the share split. The share split was a. 2 -for -5 . b. 3 -for -1 . c. 1 -for -5 . d. 5-for-1. 11. Stockholders of a company may be reluctant to finance expansion through issuing more equity because a. leveraging with debt is always a better idea. b. dividends must be paid on a periodic basis. c. the price of the stock will automatically decrease. d. their earnings per share may decrease