Hawk issued $500,000 of its ten-year bonds for $463,197 on October 1, 2016 so as to yield an effective rate of 6%. Interest is paid each October 1 and April 1.

Assuming hawk uses effetive interest method, the adjusting entry on December 31, 2016, would include:

a. Credit to discount on bonds payable for $698 b. credit to cash for $6,250 c. debit to interest expense for $5,552 d. debit to interest expense $5,790

Assuming Hawk uses the effective interest method and reversing entries, the entry to record the payment of interest on April 1, 2017 would include:

a. credit to discont on bonds payable for $1,396 b. debit to discount on bonds payable for $1,396 c. debit to inerest espense for $11,580 d. credit to cash for $12,500

If a company has 75,000 shares of treasury stock, 520,000 shares outstanding and 1,500,000 shares authorized, how many shares are issued?

a. 500,000 b. 75,000 c. 520,000 d. 595,000

Assume common stock is issued to employees as a result of exercising stock purchase rights issued under a noncompensatory share purchase plan. At what value does the company record that stock in its books?

a. market price of stock b. exercise price of stock c. market price of stock @ first date stock purchase price can be exercised. d. Option price plus value assigned to purchase right.

On January 1, 2016, samuael Co had 21,000 shares of common stock outstanding and issued additional 4,500 on may 1. The company declared and paid a cash divident of $45,000 and earned 375,000 net income. what was the basic earnings per share for the year?

a. $15.63 b. $13.75 c. $17.86 d. $21.50

On january 1, james co. had 60,000 shares of common stock outstanding. On march 1, the company reacquired 12,000 shares and it declared a 10% stock dividend on october 1. what is the denominator in the earnnigs per share calculation?

a. 44,200 b. 40,800 c. 55,000 d. 60,000