50.1K

Verified Solution

Link Copied!

can I get help with this question please

15) On December 2, 2015, Ewell Company purchases a piece of land from the original owner. In payment for the land, Ewell Company issues 8,000 shares of common stock with $1.00 par value. The land has been appraised at a market value of $400,000. Which of the following is included in the journal entry to record this transaction? A) credit Common Stock-$1 Par Value for $8,000 and credit Paid-In Capital in Excess of Par Common $392,000 B) debit Cash $400,000. C) debit Common Stock-$1 Par Value for $8,000 and debit Paid-In Capital in Excess of Par Common $392,000 D) credit Common Stock $1 Par Value for $400,000 16) A stream of equal cash payments made at equal time intervals is called atn) A) annuity C) compound interest. B) future value. D) present value. 17) The Amazing Widget Company issues $500,000 of 6%, 10-year bonds at 103 on March 31, 2014 The bond pays interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the first interest payment on September 30, 2014 is a: A) debit to Cash for $15,000. B) credit to Premium on Bonds Payable for $750. C) debit to Interest Expense for $14,250. D) debit to Interest Expense for $15,750. 18) Treasury stock causes the number of . A) outstanding shares to go up B) outstanding shares to go down C) issued shares to go down. D) issued shares to exceed authorized shares 19) On January 1, 2015, Carter Sales issued $15,000 in bonds for $14,700. They were 6-year bonds with a stated rate of 9%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. Immediately after issue of the bonds, the ledger balances appeared as follows: Discount on Bonds Payable Bonds Payable 15,000 After the first interest payment on June 30,2015, what will be the balance in the Discount Account? D) Debit of $325 A) Credit of $25 B) Debit of $300 C) Debit of $275

Answer & Explanation Solved by verified expert

See Answer