Need answers 1-29 answered

tive that best completes the statement or answers the question. market is called: MULTIPLE COICE. Choose the one alternative 1) completes 1) The price at which shares are bought and sold on the o redemption va D) market value. 2) When the corporation has both preferred and common stock, the steps B) redemption value. A) book value. C) dividend value. to compute book value for 2) common stock would be A) divide total stockholders' equity by total shares outstanding. B) compute common shares divided by number of shares outstanding D) Nte Prefered stock book value first the remainder is asigned to common stock None of these answers are correct. 3) equity is $21,000 with 2,100 common shares outstanding, what is the book C) $15.40 3) If total stockholders' value per share? A) $15.00 D) $10.00 B) $11.00 ) 4) What are the annual vidends on preferred stock, $10 par, 250 shares issued, and a dividend rate on of8%? D) $280 B) $260 C) $200 A)$240 5) 5) In the dividend process, the liability Dividend Payable is recognized on the: B) date of record. D) date of declaration. A) date of stock issue. C) date of payment. 6) 6) A distribution to stockholders in the form of cash is called a: D) cash dividend. A) cash surrender. B) stock dividend C) stock split. 7) 7) Which of the following is the jourmal entry to record the declaration of a stock dividend? A) Debit Common Stock (number of shares x par value): credit Cash B) Debit Retained Earnings (market value x number of shares); credit Common Stock Dividend Distributable (number of shares x par value); credit Paid-In Capital in Excess of Par Stock Dividend ((market value- par value) x number of shares) credit Common Stock (same) stock); credit Common Stock (same) C) Debit Common Stock Dividend Distributable (number of shares x par value common stock) D) Debit Common Stock Dividend Distributable (number of shares x market value common 8) Before a three-for-one stock split, the shares outstanding were 5,000 shares at $12 par. After the8) split, what was the par and number of shares? A) 15,000 shares at $4 per share C) 5,000 shares at $48 per share B) 15,000 shares at $12 per share D) 20,000 shares at $6 per share 9) Treasury stock is A) stock that has been reacquired by the corpora B) previously issued stock that has been C) stock that is issued in a stock split. D) unissued stock. 10) 10) Treasury Stock is what type of account? B) Liability D) Contra-stockholders' equity A) Capital stock C) Stockholders' equity B) net realizable value. D) original issue price. 11) Treasury stock should usually be recorded at: A) cost. C) par or stated value. 12) 12) A prior period adjustment would be necessary when: A) a stock dividend is declared. B) depreciation was understated the prior year C) a stock dividend is paid D) a cash dividend is declared. 13) 13) A type of long-term interest-bearing notes payable issued by corporations is called: B) bonds payable. D) stock. A) a short-term note. C) treasury stock. 14) 14) What amount is paid on the maturity date of the bond? B) Indenture amount D) Current market value A) Face value C) Quoted value 15) A $1,000 bond quoted at 96 would sell for C) $960. D) $96. B) $1,000. A) $1,090. 16) 16) A $1,000 bond quoted at 104 would sell for: C) $1,000. D) $940. B) $1040. A) $104. 17) When bonds are sold between interest dates: A) the buyer of the bond receives no interest on the bond for the six-month period. B) the buyer of the bond receives no interest payment for the period. C) the buyer pays the purchase price plus accrued interest since the last interest payment D) the seller deducts the interest from the face of the bond. 18) When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at: A) a discount. C) their face value. B) a premium. D) their maturity value 19) The carrying value for bonds sold at a discount equals: 19) A) face value minus discount on bonds. C) face value. B) face value plus bond interest D) None of these answers are correct. 20) a portion of the discount is B) amortized. D) None of these answers are correct. 30.A) depreciated. Ar ) c 21) The payment of semiannual interest on 10% S30000 C) transferred to reduce interest. bonds would be to: A) debit Bond Interest Expense $30,000; credit Cash $30,000. B) debit Cash $15,000; credit Bond Interest Expense $15,000 C) debit Bond Interest Expense $1,500; credit Cash $1,500. D) debit Cash $30,000; credit Bond Interest Expense 22) 22) The entry to record the semiannual payment and amortization of the discount using the straight-line method on a 10% S200.000, 10-year bond issued at 97 would be to: A) debit Bond Interest Expense $10,000; credit Cash $10,000. B) debit Bond Interest Expense $10,300; credit Cash $10,000; credit Discount on Bonds Payable $300. C) debit Bond Interest Expense $20,000; credit Cash $15,000; credit Discount on Bonds Payable D) debit Bond Interest Expense $20,000, credit Cash $20,000. $5,000. 23) 23) A fund set up so that a bond can be retired at maturity is called a: B) sinking fund D) bond payable fund. A) debenture fund. C) retirement fund. AY. Write your answer in the space provided or on a separate sheet of paper 24) Quinn Corporation has 2,000 shares of common stock issued and outstanding. The board of directors declared a $1.00 per share cash dividend on January 5, payable on March 5, to stockholders of record on February 5. Prepare the appropriate journal entries for the declaration and payment of the dividend. 25) On May 31, Mason Corporation has the following stockholders' equity: Common Stock, $10 par value, 6,000 shares issued and outstanding Retained Earnings $60,000 20,000 Total Stockholders' Equity declared a 10% stock dividend on June 5 to the stockholders of record on June 15, the The board of directors stock is to be distributed on June Prepare the appropriate journal entries for these transactions. 30. On the date of declaration, the stock had a market value of $15 per share. 26) Curtis Corporation's balance sheet included the Common Stock, $5 par value, 5,000 shares issued and outstanding Retained Earnings $25,000 20,000 Total Stockholders Equity Prepare journal entries for the following transactions: May 3 Issued 500 shares at $6 per share. 9 15 17 Reacquired 100 shares at $4 per share. Reissued 50 of the Treasury shares at $7 per share. Reissued 10 of the Treasury shares at $3 per share. 27 Northern Union Pacific is planning to issue 10-year, 10% semiannual interest bonds with a par value of $200,000. Required: Prepare the necessary journal entry under each of the following assumptions a. The bonds are sold on issuance date at par. b. The bonds are sold on issuance date at 96 c. The bonds are sold on issuance date at 103. 28) On January 1, Solutions Online issued $500 000 8%, 10-year bonds to lenders at the contract rate Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries: a. Issued the bonds. b. Paid first semiannual interest payment. c. Retired the bonds at maturity. EXTRA CREDIT PROBLEM 29) On July 1, Ball Computer Corporation issued 10-year, 12% $100,000 bonds for %. Prepare the ournal entries to record: a. Issuance of the bond. b. First semiannual interest period payment including the amortization of the discount using the straight-line method Account Titles and Description Date Dr PR