Search
Info
Warning
Danger

Study Resources (Accounting)

68) Which of the following is needed when declaring a common stock dividend? A) number of common shares authorized B) number of preferred shares authorized C) number of preferred shares issued D) number of common shares issued 69) Helen Randall owns 2,500 common shares in Holister Corporation, for which she paid $8,500. Holister Corporation declared.
0 Views
View Answer
21) The effective interest method of amortization keeps each interest expense amount at the same percentage of the bond's carrying value for every interest payment over the bond's life. 22) Amortizing any premium or discount on a bonds payable using the straight-line method will result in a constant amount of interest.
0 Views
View Answer
139) London Corporation had 50,000 common shares outstanding and 10,000 shares of $5, cumulative, preferred shares outstanding on January 1, 2010. On March 31, 2010, London Corporation sold 10,000 common shares for $25 per share. On June 30, 2010, London Corporation sold 5,000 common shares for $26 per share. London.
0 Views
View Answer
141) Based on the given data, compute the following items for Neff Corporation for 2010: a) Other gains and revenues b) Other losses and expenses c) Discontinued operations The tax rate in effect for Neff Corporation is 35%. 1) Interest revenue during the year is $30,000. 2) Interest expense during the year is $22,500. 3) Rent revenue.
0 Views
View Answer
21)  The difference between unissued shares and treasury shares is that treasury shares have been issued and bought back. 22) When repurchased shares are sold, retained earnings could be credited in the journal entry. 23) A corporation purchases 200 of its common shares for $12 per share. Subsequently, all 200 shares.
0 Views
View Answer
  Table 15-2 Douglas Corporation is issuing $400,000 of 7.5%, five-year bonds. The bonds are dated and sold on March 1, 2010. Interest payment dates are March 1 and September 1. The market interest rate is 8% and the bonds are sold for $392,400. The company uses the effective-interest method of amortization..
0 Views
View Answer
  Match the following. A) operating lease B) callable bonds C) market interest rate D) trading on the equity E) term bonds F) contract interest rate G) bond discount H) debentures I) over-the-counter market J) lessee K) bond premium L) capital lease M) lessor N) convertible bonds 117) Bonds that the issuer may pay off at a specified price whenever the issuer wants 118) Excess of a.
0 Views
View Answer
95) When using the effective-interest method of amortization, the discount on bonds payable amortized each period will: A) increase B) decrease C) remain the same D) be the same as under the straight-line method 96) Multistar Inc., has decided to call one-half of its bonds payable. In accordance with the bond contract, Multistar Inc. may.
0 Views
View Answer
  Table 14-3 Following is the shareholders' equity section of the balance sheet of Monty Corporation:  Contributed capital:                                         Preferred shares, $2.50, cumulative, 35,000 shares  authorized, 7,000 shares issued$    350,000 Common shares, 140,000 shares authorized, 50,000 shares issued      452,500 Total contributed capital802,500 Retained earnings       204,500 Total shareholders' equity$1,007,000 78) Refer to Table 14-3. The entry to.
0 Views
View Answer
135) Arrow Corporation began 2010 with the following account balances: Common shares, 100,000 shares authorized, 75,000 issued$2,175,000 Retained earnings750,000 In January 2010, Arrow Corporation reported the following transactions: Jan. 10Reacquired 5,000 of its own shares for $30 per share. 20Sold 3,000 of the reacquired shares for $33 per share. 30Sold the remaining reacquired shares for $22.
0 Views
View Answer
  Match the following.   A) organization costs B) record date C) return on equity D) outstanding shares E) President F) book value G) retained earnings H) shareholders' equity I) common shares J) articles of incorporation K) limited liability L) liquidation value M) board of directors N) no-par-value shares O) return on assets P) cumulative preferred shares Q) payment date of dividend R) preferred shares S) authorization of shares T) dividend U) declaration.
0 Views
View Answer
120) Net income less preferred dividends divided by average common shareholders' equity 121) The price for which a person could buy or sell a share 122) Distribution of equity to the corporations' shareholders 123) The costs of organizing a corporation, including legal fees, taxes, and charges by promoters for selling the shares. 124) No.
0 Views
View Answer
133) The shareholders' equity of Orion Corporation as of December 31, 2010, follows: Preferred shares, $3, noncumulative 8,000 shares authorized, 3,000 shares issued$  157,500 Common shares, unlimited shares authorized, 80,000 shares issued 1,000,000 Total contributed capital1,157,500 Retained earnings   405,800 Total shareholders' equity $1,563,300 Orion Corporation completed the following transactions during 2010: Mar.  5Declared the required annual cash.
1 Views
View Answer
131) Following is the shareholders' equity section of the balance sheet of Downing Corporation as of November 1, 2010: Preferred shares, $3, noncumulative, 10,000 shares authorized, 6,500 shares issued$  325,000 Common shares, 300,000 shares authorized, 120,000 shares issued 1,620,000 Total contributed capital1,945,000 Retained earnings   467,200 Total shareholders' equity$2,412,200 Downing Corporation reported the following transactions during November,.
0 Views
View Answer
143) Answer each of the following independent questions. a)Use the words "no effect," "increase," or "decrease" to indicate the effects of stock dividends and stock splits on the following items: Stock Split Stock Dividend Retained earnings account Total shareholders' equity Number of shares authorized Number of shares issued Total assets and liabilities Common shares amount b)Explain how errors from prior.
0 Views
View Answer
133) Discuss the characteristics of a corporation. Indicate, wherever appropriate, if the characteristic is an advantage or a disadvantage of the corporate form of business. 134) Prepare a journal entry for each of the following transactions. a) Masters Corporation sells 10,000 common shares for  $13.25 per share. b) Masters Corporation sells 5,000 shares.
0 Views
View Answer
  Table 13-8   The shareholders' equity section of the balance sheet of Crestor Ltd. follows:                               Contributed capital:  Preferred shares, cumulative, $3, 4,000 shares outstanding,           $200,000 Common shares, 20,000 shares outstanding300,000 Retained earnings138,250 153) Refer to Table 13-8. Assume that there were no dividends declared for the last two years. What is the total amount of.
0 Views
View Answer
  Table 15-1 Nickle Industries needs to raise capital for expansion purposes. Management is considering issuing $1,000,000 of 7.5%, 20-year bonds dated June 1, 2010 with interest payment dates of December 1 and June 1. Nickle's year end is December 31. 72) Refer to Table 15-1. The entry to record the issuance of.
0 Views
View Answer
136) Prepare journal entries for the following transactions reported by Evans Corporation for the month of May: May   1Issued 35,000 common shares at $15 per share. 21Issued 1,400 shares of $5, cumulative preferred shares for a total of $144,200. 28Exchanged 5,000 common shares for a patent valued at $82,000. 31Jet Corporation reported a net loss.
0 Views
View Answer
31) When bonds are converted into shares, shareholders' equity is increased by the face value of the bonds. 32) Issuing bonds instead of shares generally results in higher earnings per share because interest expense is tax deductible and ownership is not diluted. 33) Earning more income on borrowed money than the related.
0 Views
View Answer
1) The closing entry for a corporation reporting a net loss of $23,000 involves a credit to Retained Earnings for $23,000. 2) The retained earnings account equals all previous periods' net earnings plus any dividends declared less prior losses. 3) Retained earnings can be invested by shareholders. 4) All dividends declared by a.
4 Views
View Answer
  Table 15-5 On January 2, 2010, Goldman Corporation signed an eight-year capital lease on an office building requiring annual lease payments of $7,500, with the first payment due immediately. Annual lease payments are made each December 31. The present value of the seven future lease payments at 10% interest per.
0 Views
View Answer
  Match the following. A) stock split B) statement of earnings C) reverse stock split D) prior-period adjustment E) segment F) record date of dividend G) earnings per share H) retained earnings I) payment date of dividend J) stock dividend K) treasury shares L) declaration date of dividend M) deficit N) appropriation of retained earnings 114) An account whose balance is the cumulative, lifetime earnings of.
0 Views
View Answer
61) Jackson Corporation issues $400,000, 10%, five-year bonds at 97. The total interest expense over the life of the bonds is: A) $188,000 B) $212,000 C) $200,000 D) $40,000 62) Samson Corporation issues $200,000, 10%, five-year bonds at 103. The total interest expense over the life of the bonds is: A) $106,000 B) $26,000 C) $100,000 D) $94,000 63) Samson.
0 Views
View Answer
149) Bueno Corporation has 15,500 shares of $4, cumulative preferred shares outstanding as well as 80,000 common shares. There are no dividends in arrears on the preferred shares. The following transactions were reported during December 2010: Dec.   1Declared the required dividend on the preferred shares and a $0.75 per share dividend.
0 Views
View Answer
145) Vitacom Technologies Corp. reports the following shareholders' equity as of December 31, 2010: Preferred shares, $5 cumulative, 200,000 shares authorized,       90,000 shares issued$  5,400,000 Common shares, 500,000 shares authorized,       200,000 shares issued     2,750,000      Total contributed capital8,150,000 Retained earnings    3,400,000      Total shareholders' equity $11,550,000 Determine the following: a) What was the average issue price.
0 Views
View Answer
  Table 14-1 The board of directors declares a 10% stock dividend on 10,000 outstanding common shares. The current market price of the shares is $12 per share. 50) Refer to Table 14-1. The journal entry will require a debit to retained earnings for: A) $10,000 B) $12,000 C) $100,000 D) $120,000 51) Refer to Table 14-1. The.
0 Views
View Answer
151) Define and contrast each of the following share values: ?market value ?book value 152) Gleason Corporation has gathered the following data for the current year: Net Income$40,000 Interest Expense5,000 Income Tax Expense12,500 Preferred Dividends 3,600 BeginningEnd of of YearYear Current assets$   68,000$   81,000 Current liabilities41,00039,000 Property, plant, and equipment340,000365,000 Long-term liabilities 100,00090,000 Common shareholders' equity217,000267,000 Preferred shareholders' equity50,00050,000 a) Calculate the current ratio at year.
0 Views
View Answer
136) Calculate the total amount of interest expense over the life of the bonds for the following independent situations. a) 100, $1,000 face value, 8%, five-year bonds issued for $1,020 b) 50, $1,000 face value, 12%, 10-year bonds issued for $1,000 c) 1,000, $1,000 face value, 10%, five-year bonds issued for $980 137) Zhuang.
0 Views
View Answer
131) Central Corporation has an opportunity to acquire a company that produces one of the parts it uses in its manufacturing process. After careful analysis, Central has decided to raise the necessary capital for the acquisition by issuing $3,000,000 of 7.5%, 10-year bonds dated April 1, 2010, with interest payments.
0 Views
View Answer
129) EverClean Corporation reported the following shareholders' equity on January 1, 2010: Contributed capital Preferred shares, $2.50, cumulative, 30,000 shares authorized, 7,500 shares issued $  393,750 Common shares, 200,000 shares authorized, 135,000 shares issued   607,500   Total contributed capital1,001,250 Retained earnings   218,500         Total shareholders' equity$1,219,750 a) On June 15, 2010, the board of directors declared a.
0 Views
View Answer
103) The denominator in the earnings per share calculation is the: A) total number of preferred and common shares outstanding at the end of the period B) common shares outstanding at the end of the period C) weighted-average number of common shares outstanding during the period D) weighted-average number of common and preferred shares.
0 Views
View Answer
41) Other comprehensive income must be reported under international financial reporting standards (IFRS). 42) Kelly Corporation has experienced profits greater than losses in the past four years since incorporation. Which of the following is true? A) Retained earnings has a debit balance at the end of the fourth year. B) Retained earnings has.
0 Views
View Answer
11) Alpha Corporation issued $100,000 face value, 10-year, 8% bonds on October 1. Interest is payable each April 1 and October 1. Accrued interest on December 31 amounts to $2,000. 12) The buy-and-sell transactions between investors do not involve the company that issued the bond. 13) The journal entry to record selling.
0 Views
View Answer
143) On January 2, 2010, Pannabaker Corporation issued $400,000, five-year, 10% bonds when the market rate of interest was 12%. The bonds pay interest annually on December 31. Pannabaker Corporation uses the effective-interest method of amortization and has a year-end of December 31.(Note: present value tables required.) a) Prepare the journal.
0 Views
View Answer
  Table 13-7 Masters Inc. Partial Balance Sheet December 31, 2010 Shareholders' Equity Contributed Capital: Preferred shares, $1.00, 100,000 shares authorized, 20,000      shares issued $   100,000 Common shares, unlimited number of shares authorized,      100,000 shares issued      350,000 Total contributed capital450,000 Retained earnings      170,000 Total shareholders' equity$620,000 138) Refer to Table 13-7.  Assume that the preferred shares are not.
0 Views
View Answer
11) The declaration of a stock dividend creates a current liability for the corporation. 12) Common stock dividend distributable is a liability account on the balance sheet. 13) Common stock dividend distributable is an equity account on the balance sheet. 14) A stock split reduces the number of outstanding shares. 15) In a 3.
0 Views
View Answer
  Table 14-2 Following is the shareholders' equity section of the balance sheet of Thomson Corporation: Contributed capital Preferred shares, $8, cumulative,  25,000 shares  authorized, 5,000 shares issued$    516,000 Common shares, 100,000 shares authorized, 40,000       320,000  shares issued Total contributed capital836,000 Retained earnings      290,000 Total shareholders' equity$1,126,000 The preferred shares are currently selling for $102.25 per share and.
0 Views
View Answer
  Table 14-5 Following is the shareholders' equity section of the balance sheet of Bradson Ltd.: Contributed capital Preferred shares, $2, cumulative,  75,000 shares  authorized, 10,000 shares issued$    300,000 Common shares, 400,000 shares authorized, 50,000       400,000  shares issued Total contributed capital700,000 Retained earnings      490,000 Total shareholders' equity$1,190,000 The preferred shares are currently selling for $34.00 per share and.
0 Views
View Answer
137) On January 1, 2010, Slater Corporation had outstanding 100,000 common shares. On March 1, 2010, Slater Corporation issued an additional 15,000 common shares for cash. On May 31, 2010, Slater Corporation received land with a current market value of $100,000 in exchange for issuing 4,000 common shares. On August.
0 Views
View Answer
51) Smith Corporation issues $400,000, 10%, five-year bonds at 95. The total interest expense over the life of the bonds is: A) $40,000 B) $220,000 C) $180,000 D) $200,000 52) Several years ago, Bee Corporation issued $400,000, 10% bonds for $380,000. The balance in the discount on bonds payable account at the end of the.
0 Views
View Answer