50.1K

Verified Solution

Link Copied!

2LAR on January 12.000.000, Svear. O bonds were issued for 51,960,000. Interest is paid A yon January 1 and July 1. If the i ncorporation uses the straight-line method to orice discount on bonds payable, the semiannual amortization amounts . $2.000 $4,000 $10.000 22. Which account is not included on stockholders' equity section Dividends in Arrears Common Stock Paid in Capital in Excess of Par Retained Earnings 23. The proceeds received from the issuine band depends on which of the following coupon rate of interest market rate of interest principal all of the above none of the above 24. The balance in Discount on Bonds Payable that is applicable to bonds due in three years would be reported on the balance sheet in the section entitled investments long-term liabilities current assets intangible assets 25. Who has the authority to declare a cash dividend a. Chief Operating Officer b. Chief Financial Officer C Chief Executive Officer Board of Directors dRadle 26. Which accounts will be credited to record the issuance of preferred stock at a price above par Cash and Common Stock Preferred Stock and Paid in Capital Excess Additional paid in capital and gain None of the Above d. 27. The maximum number of shares of common stock that may be issued according to the corporation's charter is referred to as the - a. authorized shares. b. issued shares. unissued shares. d. outstanding shares 2. All of the accounts receive cash dividends except Class A common stock Class B common stock Treasury stock 29. Purchase of Treasury stock has no effect on assets reduces the total assets and total equity by equal amounts is recorded with a debit to retained earnings none of the above 30. One of the main disadvantages of the corporate form is the inability to raise large amounts of capital double taxation charter requirement to stock none of the above 31. The two basic sources of stockholders' equity are assets and equity b. preferred and common retained earnings and dividends d. paid-in-capital and retained earnings 32. The entry to record the issuance of common stock at a price above par includes a debit to Organizational Expenses Common Stock Cash d. Paid-In Capital in Excess of Par-Common Stock 33. The Amex Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transaction will consist of a debit to Cash for $750,000 and a credit or credits to Preferred Stock for $750,000 b. Preferred Stock for $500,000 and Paid-In Capital in Excess of Par-Preferred Stock for $250,000 C. Preferred Stock for $500,000 and Retained Earnings for $250,000 Paid-In Capital from Preferred Stock for $750,000 34. Par value b. is the monetary value assigned per share in the corporate charter represents what a share of stock is worth represents the original selling price for a share of stock is established for a share of stock after it is issued c. d. Solution 5. Data company issues 1.500 shares of 56 Common stock will be created So shares of sonar common stock for $75.000 575.000 - Capital in res of Paribe credited for $9.000 Paid Capital Fress of Par will be credited for $6,000 Casill be debited for 566.000 000 shares of $100 par cumulative preferred stock and 100.000 shares of Hack The following amounts were distributed as dividends. 36. Mace company has 20,000 shares of 10 $75 par common stock The Year 1500.000 Year: 50.000 Year 3 90,000 total amount of dividends in arrears for preferred stock at the end of the second year Determine the total amount of divide $25.000 $20,000 $15,000 $ 30,000 Peeps Inc. has 2,000 shares of 4 $200 par value cumulative preferred stock and 20,000 shares of par le common stock outstanding at December 31, 2017. What is the annual dividend on the preferred stock? $20 per share $80 in total $400,000 $16.000 38. The liability for a dividend is recorded on which of the following dates? the date of record the date of payment the last day of the fiscal year d the date of declaration 39. Which of the following is not a prerequisite to paying a cash dividend? formal action by the board of directors market value in excess of par value per share c. sufficient cash d. sufficient retained earnings 40. A company has 125,000 shares of a $100 par common stock outstanding. On July 1 a 4% stock dividend to be issued September 1 to stockholders of record on August 1. The market price of the stock on July 1 was $135 per share. What is the amount of the total dollar amount of the stock dividends. a. $500,000 b. $675,000 $5000 d. $175,00

Answer & Explanation Solved by verified expert

See Answer