#'s 12-16

Machinery was purchased on January 1, 2016 for $51,000. The machinery has an estimated life of 7 years would estimated Salvage value of $9,000. Double-declining balance depreciation for second year 2017 would be a. $10, 408 b. $10, 929 c. $6,000 d. $10, 500 When Bayou Corporation was formed on January 1, 20xx, the corporate charter provided for the authorization of 100,000 shares of $10 par value common stock. The following transaction was among those engaged in by the corporation during its first month of operation: The corporation issued 9,000 shares of stock at a price of $23 per share. The entry to record the above transaction would include a a. debit to Common Stock for $90,000 b. debit to Cash for $90,000 c. credit to Paid in Capital in Excess of Par for $117.000 d. credit to Common Stock for $207,000 A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the stock dividend is to a. increase retained earnings, decrease common stock, and decrease paid-in capital b. decrease retained earnings, increase common stock, and decrease paid-in capital c. decrease retained earnings, increase common stock, and increase paid-in capital d. increase retained earnings, decrease common stock, and increase paid-in capital On December 31, Batter-Up Company has decided to trade-in one of its batting cages for another one that ha a cost of $1,000,000. The seller of the batting cage is willing to allow a trade-in amount of $22,000. The initial cost of the old equipment was $430,000 with an accumulated depreciation of $370,000. Depreciation has been taken up to the end of the year. The difference will be paid in cash. What is the amount of the gain or loss on this transaction? a. Loss of $22,000 b. Loss of $38,000 c. Gain of $22,000 d. Gain of $60,000 Miriah Inc. has 10,000 shares of 5%, $ 100 par value, cumulative preferred stock and 50,000 shares of V value common stock outstanding at December 31, 2016. What is the annual dividend on the preferred a. $50 per share b. 50.50 per share c. $50,000 in total d. $10,000 in total