Jeckel, Inc. purchased equipment that cost $48,000. The equipment had a useful life of 5 years and a $5,000 salvage value. Jeckel used the double-declining-balance method to depreciate its assets. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the company's financial statements?

On September 11, 2006, the Farin-Orr Corporation has unrestricted Retained Earnings of $6,000,000, Appropriated Retained Earnings of $4,000,000, Cash of $7,500,000, and Accounts Payable of $500,000. What is the maximum amount that can be used for cash dividends? (Assume the Board of Directors was foolish enough to pay out the absolute maximum allowed).

Select one:

a. $7,500,000

b. $7,000,000

c. $6,000,000

d. $5,500,000

Harriet, Incorporated issued a 15% stock dividend on 20,000 outstanding shares of $10 stated value common stock. The distribution was made at the time the market value of the stock was $50 a share. How did this transaction affect the company's total stockholders' equity?

Select one:

a. The total balances in equity accounts increased by $150,000.

b. The sum of the balances in equity accounts increased by $30,000.

c. The sum of the balances in equity accounts decreased by $150,000.

d. Total stockholders' equity was not affected by this transaction.

The par value of common stock

Select one:

a. changes in proportion to market value.

b. is not related to market value.

c. is greater than market value.

d. is less than market value.

+ Equity (10800) + #13 Assets A (10800) B (5000) c (19200) D (19200) = Liabilities = NA = NA = NA = NA (5000) Revenues or Gains - Expenses or Losses = Net Income Cash Flow NA 10800 = (10800) (10800) OA 5000 = (5000) NA NA 19200 = (19200) (19200) OA NA 19200 = (19200) NA NA + + (19200) (19200) +