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Provide explanation or calculations (if its possible) QUESTION 9 Trading on the equity (leverage) refers to the O number of times interest is earned. amount
Provide explanation or calculations (if its possible)
QUESTION 9 Trading on the equity (leverage) refers to the O number of times interest is earned. amount of working capital. O amount of capital provided by owners. use of borrowed money to increase the return owners. QUESTION 10 Entity K is authorized to issue 1,000,000 shares of $2 par value common stock. On January 15, Entity K issued 700,000 shares of stock at $7 per share. On September 5, it repurchased 20,000 shares of common stock for the treasury at 58 per share. The journal entry to record the September 5, treasury stock transaction includes: O a debit to Treasury Stock for $160,000 O a debit to Long-Term Investments for $160,000 O a debit to Common Stock for $40,000 O a debit to Paid-In Capital in Excess of Par, Common Stock for $40,000 QUESTION 11 On January 1, 2023, Entity J issued $2,000,000 of 4% bonds with a five-year term. Interest is payable annually on January 1. The market interest rate was 6%. The issue price was $1,831,509. Entity J uses the effective interest method for amortization of bond discount or premium. What is the new carrying value of the bonds after the first interest accrual on December 31, 2023? O $1,861,400 $2,000,000 O $1,831,509 $3.000.000 QUESTION 12 Entity F borrowed $22,000 on October 1, 2022 issuing a 7-month, 12% interest-bearing note to the bank, with principal and interest payable at maturity. What is the maturity value of the note? O $23,540 O $22,000 O $22.660 $24.640Step by Step Solution
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