multiple choice

Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? (A) Transferability of ownership (B) Limited liability (C) Separate legal entity (D) Separation of ownership and management (2 marks) The following information is from the balance sheet of Judo Corporation as of December 31, 2014. $ 600,000 Preferred stock, 5100 par 50.000 Paid-in capital in excess of par preferred Common stock, Si par 300,000 520,000 Paid-in capital in excess of par common HT Retained earnings 320.000 $1.790.000 Total stockholders' equity What was the total paid-in capital as of December 31, 2014? (A) $1,790,000 (B) 5900,000 (C) 5320,000 (D) $1,470,000 sem 2 2018-2019 Meeresse/Downloads/sem.202%202018 2019.pdf ( 00,000 (C) $320,000 (D) $1,470,000 (2 marks) Haney Corporation issued 20,000 shares of common stock on January 1, 2014. The stock has par value of $1.00 per share and was sold at $30 per share. Which of the following is the correct journal entry to record this transaction? (A) credit Cash $600,000, debit Common stock $20,000, and debit Paid-in capital $580,000. (B) debit Cash $600,000 and credit Paid-in capital $600,000. (C) debit Cash $600,000, credit Common stock $20,000, and credit Paid-in capital $580,000. (D) debit Cash $600,000 and credit Common stock $600,000. (2 marks) Page 4 SECTION B QUESTION 11 Baltic Supplies presented the following unadjusted Trial Balance as at December 31, 2016. A/C Name Trial Balance GAAP prefers companies to use which of the following methods to account for bad debts? (A) Direct write off (B) Allowance (C) 360-day (D) Amortization (2 marks) The Allowance for uncollectible accounts currently has a debit balance of $1,000. The company's management estimates that 2.0% of net credit sales will be uncollectible. Net credit sales are $260,000. What will be the balance of the Allowance for uncollectible accounts reported on the balance sheet? (A) $5,200 (B) 56,200 (C) $1,000 (D) $4,200 (2 marks) Which of the following characteristics of a corporation limits a stockholder's loss to the amount of his or her investment in the stock of the corporation? (A) Transferability of ownership (B) Limited liability (C) Separate legal entity (D) Separation of ownership and management