Need help with assignment. See attachment for questions and another attachment for the answer sheet.

Multiple Choice: 2 points each. Place your answers in the table below using CAPITAL LETTERS. 1. 11. 21. 2. 12. 22. 3. 13. 23. 4. 14. 24. 5. 15. 25. 6. 16. 7. 17. 8. 18. 9. 19. 10. 20. 1 1. A company received $25,000 for 1,000 shares of $5 par value stock. Which of the following is the appropriate journal entry to record this transaction? A. B. C. D. 2. A. B. C. D. Treasury stock held by a corporation: Is subtracted from total stockholders' equity on the balance sheet. Receives dividends. Has voting rights. Is included in assets. 3. Parkway Corporation has $200,000 of 6%, preferred stock outstanding which carries a cumulative dividend preference. Parkway also has 10,000 shares of $1 par value common stock outstanding. In the company's first year of operations, no dividends were paid. During the second year, Parkway paid cash dividends of $18,000. The dividend should be distributed as follows: A. $12,000 preferred; $6,000 common. B. $8,000 preferred; $10,000 common. C. $0 preferred; $18,000 common. D. $18,000 preferred; $0 common. 4. A company had a beginning balance in retained earnings of $65,000. Net income for the current year was $122,000 and cash dividends of $8,500 were paid. The ending balance in retained earnings equals: A. $113,500. B. $178,500. C. $ (48,500). D. $187,000. 5. A corporation issued 50,000 shares of its $1 par value common stock in exchange for land with a market value of $64,000. The entry to record this transaction would include a: A. Credit to Additional paid-in capital for $14,000. B. Credit to common stock for $64,000. C. Debit to land for $50,000. D. Debit to common stock for $50,000. 6. A. B. C. D. The three key elements of a bond include all of the following except: Maturity date. Stated interest rate. Face value. Bond holder. 7. A. B. C. D. A discount on bonds payable is recorded when: A company issues bonds with a stated rate that is more than the market rate. A company issues bonds with a stated rate that is less than the market rate. A company issues bonds with a stated rate that is equal to the market rate. Bond proceeds are greater than the face value. 8. A. B. C. D. Which of the following expenses is recorded on an operating lease? Depreciation expense Interest expense Rent expense Other expense 9. A. B. C. D. Which of the following describes a bond that is issued without security? Serial Debenture Callable Convertible 10. A company originally issued bonds a face value of $100,000. The bonds were retired early and the company paid $110,093 for the bond retirement. The company should record: A. A gain on bond retirement of $10,093. B. A loss on bond retirement of $10,093. C. No gain or loss on bond retirement. D. Cash paid of $100,000. 11. Which of the following methods is used to account for long-term investments in equity securities when the investor has a significant influence? A. Market value method B. Investment method C. Equity method D. Consolidation method 12. On November 1, 2010, Montel Inc. purchased a $100,000, 6% bond. The bond pays interest annually on October 31 and will mature in five years on October 31, 2015. Management plans to hold the bonds until maturity. What is the appropriate adjusting journal entry to record the accrued interest as of December 31, 2010? A. B. C. D. 13. Deuce Corporation owns 45% of the outstanding voting shares of Ace Corporation. Ace pays a total of $123,000 in cash dividends to its shareholders. Deuce's entry to record the receipt of dividends should include a: A. Credit to Cash for $123,000. B. Credit to Investments for $55,350. C. Debit to Investment Income for $123,000. D. Debit to Investments for $55,360. 14. When a company owns more than 50% of the outstanding voting shares of another company, which of the following is true? A. The investment should be accounted for using the equity method. B. The results of the operations of the two companies should be reported together in consolidated financial statements. C. The investments should be accounted for using the market value method. D. The investments should be accounted for using the amortized cost method. 15. If Elm Company owns 15% of Maple Company and intends to hold the stock for at least four years. At the end of the current year, how would Elm Company report its investment in Maple Company? A. At original cost in the current assets section of the balance sheet. B. At the year end market value in the current assets section of the balance sheet. C. At original cost under long-term assets on the balance sheet. D. At the year end market value in the long-term assets section of the balance sheet. 16. The ____________ method for reporting cash flows from operating activities on the statement of cash flows begins with net income. A. Direct B. Cash flow C. Operating D. Indirect 17. Madison Company has the following cash flows for the current year: What is the net cash flows provided by (used for) investing activities? A. $13,000 B. $22,000 C. ($22,000) D. $5,000 18. Cash flows from interest received should be reported on the statement of cash flows under: A. Investing activities. B. Financing activities. C. Owner's activities. D. Operating activities. 19. The following information was taken from a company's records for the plant and equipment account: What would appear on the statement of cash flows for the activity in this account? A. Only proceeds from sale of plant and equipment of $34,000. B. Net change in plant and equipment account $23,000. C. Proceeds from sale of plant and equipment of $34,000 and payment for purchase of plant and equipment of ($57,000). D. Only payment for purchase of plant and equipment ($57,000). 20. Which of the following does not represent information provided by the free cash flow measure? A. A company's ability to make additional capital investments without external financing. B. A company's ability to generate a profit on their investments. C. A company's ability to pay down debt or repurchase stock. D. A company's ability to pay future dividends. 21. Expressing each financial statement item as a percentage of another amount on that statement is known as: A. Vertical analysis. B. Horizontal analysis. C. Ratio analysis. D. Risk analysis. 22. Which of the following represents the calculation for determining the yearto-year percentage change for horizontal analysis? A. [(Current year amount - prior year amount)/prior year amount] x 100 B. [(Prior year amount - current year amount)/prior year amount] x 100 C. [(Prior year amount - current year amount)/current year amount] x 100 D. [(Current year amount - prior year amount)/current year amount] x 100 23. Which ratio can be used to assess how much profit was made, on average, on each dollar of sales, after deducting the cost of goods sold? A. Net profit margin. B. Return on sales ratio. C. Gross profit percentage. D. Earnings per share. 24. A company had a stock price of $45 per share, earnings per share of $0.75, and dividends per share of $0.20. What is the company's price/earnings ratio? A. 1.7 B. 60.0 C. 225.0 D. 81.8 25. A company reported total sales of $1,200,000 and $1,322,000 for the years 2010 and 2011 respectively. What is the year-over-year percentage increase in sales for 2011? A. 10.2% B. 9.2% C. 108.4% D. 122.0%