Question
Gammell Company issued $50,000 of 9% bonds with annual interest payments. The bonds mature in ten years. The bonds were issued at $48,000. Gammel Company
Gammell Company issued $50,000 of 9% bonds with annual interest payments. The bonds mature in ten years. The bonds were issued at $48,000. Gammel Company uses the straight-line method of amortization. How much is the annual interest expense?
$4,700 | ||
$4,300 | ||
$4,500 | ||
$4,680 |
7 points
Question 23
If a bond is issued at 101, the stated rate of interest was
higher than the market rate of interest. | ||
lower than the market rate of interest. | ||
equal to the market rate of interest. | ||
not related to the market rate of interest. |
7 points
Question 24
Which of the following represents the maximum number of shares of stock issuable to the public?
Authorized shares | ||
Issued shares | ||
Outstanding shares | ||
Treasury shares |
7 points
Question 25
Irish Corporation issued (sold) 10,000 shares of its no par common stock for $70 per share. The bylaws established a stated value of $10 per share. The transaction would increase the common stock account on the balance sheet by how much?
$0 | ||
$600,000 | ||
$100,000 | ||
$700,000 |
7 points
Question 26
On December 15, 2009, the board of directors of Cross Corporation declared a cash dividend, payable on January 8, 2010 of $.80 per share on the 2,000,000 common shares outstanding. On December 15, 2009, Cross Corporation should
not prepare a journal entry because the event had no effect on the corporation's financial position until 2010. | ||
decrease retained earnings $1.6 million and increase expenses $1.6 million. | ||
decrease retained earnings $1.6 million and increase liabilities by $1.6 million. | ||
decrease cash $1.6 million and decrease retained earnings $1.6 million. |
7 points
Question 27
Which of the following statements doesn't correctly describe preferred stock?
Preferred shareholders have a preference with respect to dividend payments. | ||
Preferred shareholders have a preference with respect to assets in the event of liquidation. | ||
Preferred shareholders have voting rights on a per share basis. | ||
Preferred stock typically has a fixed dividend rate. |
7 points
Question 28
CBA Company reported total stockholders' equity of $85,000 on its balance sheet dated December 31, 2010. During the year ended December 31, 2011, CBA reported net income of $10,000, declared and paid a cash dividend of $2,000, and issued additional common stock for $20,000. What is total stockholders' equity as of December 31, 2011?
$117,000 | ||
$113,000 | ||
$109,000 | ||
$101,000 |
7 points
Question 29
A corporation has $80,000 in total assets, $36,000 in total liabilities, and a $12,000 debit balance in retained earnings. What is the balance in the contributed capital account?
$ 56,000 | ||
$ 44,000 | ||
$ 48,000 | ||
$31,500 |
7 points
Question 30
The Pioneer Company has provided the following account balances:
Cash $38,000; Short-term investments $4,000; Accounts receivable $6,000; Inventory $48,000; Long-term notes receivable $2,000; Equipment $96,000; Factory Building $180,000; Intangible assets $6,000; Accounts payable $30,000; Accrued liabilities payable $4,000; Short-term notes payable $14,000; Long-term notes payable $92,000; Contributed capital $180,000; Retained earnings $60,000.
What are Pioneer's total current liabilities?
$44,000 | ||
$34,000 | ||
$48,000 | ||
$140,000 |
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