Q2: Assume that Company X only has common shares outstanding. Dividing the total shareholder's equity by the number of shares outstanding determines:

		a. the book value per share
		b. the redemption value per share
		c. the market value per share
		d. the liquidation value per share

Q3: Gold Corporation computes common-size percentages for its income statement. Based on the following data, what percentage would be shown on the income statement for Gross Margin?

Cost of Goods Sold $ 1,080,000

Interest Expense 210,000

Net Sales 1,800,000

Gross Sales 2,200,000

Total Assets 3,500,000

		a. 40%
		b. 51%
		c. 60%
		d. 49%

Q4:

Western Corporation had the following transactions in 2020, its first year of operations.

Issued 6,000 common shares at $30.00 per share.

Earned net income of $200,000.

Paid dividends of $5.00 per share.

At the end of 2020, how much is the total contributed capital?

		$150,000
		$325,000
		$200,000
		$180,000

Q5:

Laser Corporation issues 50 of $1,000 maturity value, 10% bonds at 102.5. The journal entry includes a:

		debit to Cash for $50,000
		credit to Bonds Payable for $51,250
		credit to Premium on Bonds Payable for $1,250
		debit to Discount on Bonds Payable for $1,250

The following selected list of accounts with their normal balances was taken from the general ledger of Grant Corporation as of December 31, 2021:

Cash	$173,500
Common shares, 100,000 shares authorized, 38,000 shares issued	190,000
Retained earnings	131,500
Cash dividends payable	25,000
Preferred shares, 300,000 shares authorized 200,000 shares issued	500,000

What is the average price of a common share?

		$1.90
		$0.95
		$3.80
		$5.00