PLEASE DO THIS VERY CORRECT !!!

PLEASE HELP ME WITH THIS CORRECTLY, I NEED TO HAVE A GOOD NOTE.

MAKE IT LIKE IT'S FOR YOU.

IF YOU ARE NOT SURE AND IT WILL DO BETTER LET ANOTHER PERSON HELP ME.

THANKS !!!

TRUE OR FALSE

1. Current Liabilities are valued at replacement value.True or False?
2. Bonds-Straight-Line amortization is not allowed under IFRS.True or False
3. Dividends are required to be paid in cash.True or False
4. A liability is created for the future payment of dividends on the declaration date.
5. Prepaid Expenses are classified as Current Assets.True or False?

6.When a bond issue sale price is higher than the bond face amount, the effective interest rate is:

a.Lower than the stated rate

b.Higher than the stated rate

c.Equal to the stated rate

d.Effective interest is not applicable to bonds

7.Icicles Inc. is a defendant in a current lawsuit that it estimates has probable loss of $175,000.The loss contingency should be:

a.Disclosed and accrued as a liability

b.Disclosed but not accrued as liability

c.Not Disclosed, but accrued as a liability

Not Disclosed and not accrued as a liability

8.Current liabilities include:

a.Revenue Receivable

b.Deferred Revenues

c.Mortgage Payable

d.Capital Stock

9.. ___________ represents the accumulated earnings since inception of the company that have not been paid out to shareholders in the form of a dividend.

a.Comprehensive income

b.Net Income

c.Retained Earnings

d.Earning Liability

10.Superstar Company has the following items: common stock, $950,000; treasury stock, $205,000; deferred income taxes, $185,000 and retained earnings, $424,000. What total amount should Superstar Company report as stockholders' equity?

A)$1,764,000.

B)$1,169,000.

C)$1,354,000.

D)$745,000

E)none of the above

11..Sophia Company's 2020 financial statements contain the following selected data:

Income Taxes$45,000

Interest Expense25,000

Net Income80,000

Sophia Company's times interest earned for 2020 is:

A)4.0 times

B)5.0 times.

C)6.0 times.

D)3.2 times.

12.A bond is issued with a face amount of $600,000 and a stated interest rate of 10%. The current market rate of interest is 9%. These bonds will sell at a price that is:

A) Equal to $600,000.

B) Higher than $600,000.

C) Lower than $600,000.

D) None of the above

13..The cumulative feature of preferred stock

a.requires that dividends not paid in any year must be made up in a later year before dividends are distributed to common shareholders.

b.limits the amount of cumulative dividends to the par value of the preferred stock.

c.means that the shareholder can accumulate preferred stock until it is equal to the par value of common stock at which time it can be converted into common stock.

d.enables a preferred stockholder to accumulate dividends until they equal the par value of the stock and receive the stock in place of the cash dividends.

14..In 2020 Natel, Inc. had expenses of $275,000 revenues of $600,000, and declared dividends of $150,000.What is the impact to Retained Earnings?

A)decrease of $175,000

B)increase of $325,000

C)increase of $175,000

D)decrease of $325,000

E)none of the above

15.Assume common stock is the only class of stock outstanding in the Bart Corporation. Total stockholders' equity divided by the number of common stock shares outstanding is called:

a.book value per share.

b.par value per share.

c.stated value per share.

d.market value per share.

16.Which of the following investment securities will not reported at fair value under GAAP?

A) Bonds held as trading securities

B) Debt securities held as available for sale securities

C) Debt securities held to maturity

D) All of the above are reported at fair value

17.During the year, Silver Inc. incurred and paid the following costs related to its bonds:$50,000 to have bond certificates printed, $170,000 in legal fees, $25,000 accounting fees for registration information, and $100,000 to an underwriter as a commission. What is the amount of bond issue costs?

A) $345,000

B) $220,000

C) $245,000

D) $270,000

E) none of the above

Calculations:

18.On January 1, 2020, Creddit, Inc. issued 10-year, $2,000,000 face value, 6% bonds, at par.Each $1,000 bond is convertible into 18 shares of Creddit common stock.Creddit's net income in 2020 was $425,000, and its tax rate was 35%.The company had 100,000 shares of common stock outstanding throughout 2020.None of the bonds were converted in 2020.

Instructions:

a.Compute earnings per share for 2020(round to nearest cent)

b.Computer diluted earnings per share for 2020 (round to nearest cent)

19.Requirement:Calculate the issue price of bonds (show work)

Principal $150,000

Term Payable in 5 years

Interest Payable 8% payments due at end of each year

Market at issue date 10%

20.

Required:Calculate Accumulated Depreciation - Machine at December 31, 2020 Using Declining Balance(show work)

Data:

Cost of machine$600,000

Estimated useful life5 Years

Estimated salvage value$25,000

Double Declining200%

Purchase Date January 1, 2019

Aging of Accounts Receivable - Balance Sheet Method

Use the following information and complete required items 1-3

The accounts receivable listing of StartUp Company shows the following on December 31, 2020.

The general ledger showed a $250 credit balance in Allowance for Doubtful Accounts before adjustment

Name of customer Invoice date Amount

Speals Inc. December 5, 2020 $750

Siron Corporation August 11, 2020 425

Screen Corporation December 11, 2020 475

Bean Inc. July 3, 2020 200

Apples Inc. September 16, 2020 505

Apples Inc. July 4, 2020 875

Window Inc. March 3, 2020 625

Trail Corporation November 14, 2020 825

Spokes Inc. November 20, 2020 325

Winter Corporation October 19, 2020 700

Required:

1. Prepare an aging of accounts receivable at December 31, 2020

2.Compute estimated loss based on the following:

Age (days) Estimated Loss Percentage

1-30 2%

31-60 3%

61-90 10%

91-120 15%

121-150 25%

Over 150 50%

3. Prepare a journal entry to record the bad debt expense for the year.