80.2K

Verified Solution

Link Copied!

18 company issued 5-year, 7% bonds with a par value of $100.000. The market when the boods issued was 6.5%. The company received $102.105 cash for the bonds. Using the effectivene hod, the amount of recorded vierest expense for the first semianwalmeres periodis A) 53,500.00 B) $7,000.00 C) $3,318.41 D) $6,573.90 E) $1,750.00 19) Par value of a stock refers to the A) Issue price of the stock B) Value assigned per share by the corporate charter. C) Market value of the stock on the date of the financial statements D) Maximum selling price of the stock. E) Dividend value of the stock. 20) Retained earnings: A) Generally consists of a company's cumulative net income less any bet losses and dividends declared since its inception B) Can only be appropriated by setting aside a cash fund. C) Represent an amount of cash available to pay shareholders. D) Are never adjusted for anything other than net income or dividends. E) Represents the amount shareholders are guaranteed to receive upon company liquidation 21) A company had a beginning balance in retained camnings of $400,000. It had net income of $50,000 and declared and paid cash dividends of $55.000 in the current period. The ending balance in retained earnings equals: A) S505,000. B) S405,000. C) $395.000. D) $455.000. E) $350,000 22) Mayan Company had net income of $132,000. The weighted average common shares outstanding were 80,000. The company has no preferred stock. The company's earnings per share is: A) $1.65. B) $1.59. C) $44.00 D) $26.67. E) $1.71. 23) MBP Company has 10,000 shares of $10 par preferred stock, which were issued at par. It also has 250,000 shares of common stock outstanding, and its total stockholders' equity equals $4,000,000. The book value per common share is: A) $16.67 B) $16.00 C) $40.00 D) $15.60. E) $10.00

Answer & Explanation Solved by verified expert

See Answer