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.