Question 3

A) net income

B) prior period adjustments.

C) some disposals of treasury stock.

D) All of these increase retained earnings.

Question 4 Builder Corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders equity?

options: A) Increase by $700,000

B) Decrease by $400,000

C) Decrease by $700,000

D) Increase by $400,000

Question 5 Saved Which of the following is not generally reported for each class of stock on the balance sheet? options:

A) the market value.

B) the par value.

C) shares authorized.

D) shares issued.

Question 6 Unsaved Astor Corporation has cumulative preferred stock. If dividends are not declared in a period, then those dividends are

options:

A) considered a liability.

B) called dividends in arrears.

C) distributions of earnings.

D) never paid.

Question 7 Unsaved David Corporation issues 15,000 shares of $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $900,000 and a credit or credits to

options:

A) Preferred Stock for $900,000.

B) Preferred Stock for $750,000 and Paid-in Capital in Excess of Par ValuePreferred Stock for $150,000.

C) Preferred Stock for $750,000 and Paid-in Capital from Preferred Stock for $150,000.

D) Paid-in Capital from Preferred Stock for $900,000.

Question 8 Unsaved Major Corporation issues 1,000 shares of $10 par-value common stock in exchange for land with a fair market value of $25,000, the land and common stock (along with any additional paid-in capital) should be recorded at:

options

A) $0

B) $1,000

C) $10,000

D) $25,000

Question 9 Unsaved Baker Corporation has 500,000 shares of common stock outstanding. On May 10, the board of directors declared a $0.60 per share cash dividend, to be paid to stockholders of record on May 25. The dividend was distributed on June 6. The proper journal entry to record on June 6 is:

options:

A) Dividends Expense 300,000 Cash 300,000

B) Dividends Payable 300,000 Cash 300,000

C) Retained Earnings 300,000 Cash 300,000

D) Dividends Payable 300,000 Retained Earnings 300,000

Question 10 Unsaved Bellamy Corporation paid $100,000 in dividends. The corporation had 10,000 shares of common stock outstanding and 5,000 shares of $100 par value 5% preferred stock. The preferred stock was two years in arrears prior to the current year. How much was paid to the common stockholders?

Question 10 options:

A) $0

B) $25,000

C) $50,000

D) $75,000 Save

Question 11 (1 point) Question 11 Unsaved Which of the following categories/methods would be used to account for an investment, where the intent of the investment was primarily for short-term profits?

options: A) Trading securities

B) Available-for-sale securities

C) Held to maturity securities

D) Equity method

Question 12 Unsaved If Lawson Corporation issues bonds when the contract interest rate for the bonds exceeds the effective interest rate of the bond, then:

Question 12 options:

A) The price of the bond will be equal to the future cash flow associated with the bond.

B) The bond will be issued at a premium.

C) The bond will be issued at a discount.

D) The face value of the bond will fluctuate over its life.

Question 13 Unsaved On April 1, 20X1, Collings Corporation purchased $100,000 of 7%, 5-year bonds dated April 1, 20X1, at 101. Interest is paid on March 31 and September 30. Assuming use of the straight-line amortization method, the proper amount of income to record on September 30, 20X1 is:

Question 13 options:

A) $7,000

B) $3,400

C) $3,500

D) $3,600

Question 14 Unsaved Investor Corporation owns 30% of Investee Corporation. Investee had net earnings of $100,000 during the year and paid dividends of $30,000. Investor's Investment in Investee account contained a $70,000 balance at the beginning of the year. What would be the correct balance of this account at the end of the year?

options: A) $70,000 B) $91,000 C) $100,000 D) $140,000

Question 15 Unsaved King Corp. has a calendar year. Kings net income before effect of dividends was $1,250,000 for 20x7 and $1,500,000 for 20x8. Kin declared $375,000 dividends on November 15, 20x7. Date of record was January 15, 20x8 and dividends were paid on Feb. 1, 20x8. Stockholders equity at January 1, 207 was $2,500,000.

(a) Prepare journal entires to reflect the(1) dividend declaration,(2) date of record, and (3)date of payment.

(b) How much was total equity at the end of 20x7 and 20x8?