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Study Resources (Accounting)

11) Allison and Josh are partners in a business. Allison's capital is $60,000 and Josh's capital is $100,000. Profits for the year are $80,000. They agree to share profits and losses as follows: Allison Josh Salaries $20,000 $40,000 Interest on capital 10% 10% Remaining profits and losses 3/5 2/5 Allison's share of the profits before paying salaries and interest on capital.
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17.4   Learning Objective 17-4 1) James wants to invest cash so that he will have a one-third interest in Thomas and Stanley's company. The capital balances are $2,000 Thomas, $6,000 Stanley. The admission of James would be to: A) debit Cash $2,666.67; credit James, Capital $2,666.67. B) debit Cash $5,333.33; credit James, Capital.
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  18.1   Learning Objective 18-1 1) The articles of incorporation are: A) submitted by the incorporators to the IRS for approval. B) submitted by the incorporators to the Office of the Secretary of State for approval. C) submitted by the incorporators to Securities and Exchange Commission for approval. D) submitted by the incorporators to the Governor.
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41) Crafton Corporation is planning to issue 5-year, 8%, semiannual interest bonds with a face value of $400,000. Required: Prepare the necessary journal entry under each of the following assumptions. a. The bonds are sold on issuance date at par. b. The bonds are sold on issuance date at 97. c. The bonds are.
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31) The financial loss that each stockholder in a corporation can incur is limited to the amount invested by the stockholder. 32) A change in ownership terminates the corporation. 33) The stockholders of a corporation have mutual agency. 34) The Articles of Incorporation are submitted to the Secretary of State. 35) A stock certificate.
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  20.1   Learning Objective 20-1 1) A special type of long-term interest-bearing note payable issued by a corporation to raise capital is called a: A) short-term note payable. B) bond payable. C) stock issue. D) treasury stock issue. 2) The contract rate for a bond is: A) the annual interest rate based on selling price. B) the annual interest.
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11) A prior period adjustment would be necessary when: A) a stock dividend is declared. B) a stock dividend is paid. C) amortization expense was understated the prior year. D) a cash dividend is declared. 12) A prior period adjustment for depreciation would affect what account in the stockholders' equity section? A) Capital Stock B) Paid-in Capital.
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46) On May 31, Mason Corporation has the following stockholders' equity: Common Stock, $10 par value, 6,000 shares issued and outstanding$60,000 Retained Earnings20,000 Total Stockholders' Equity$80,000 The board of directors declared a 10% stock dividend on June 5 to the stockholders of record on June 15. The stock is to be distributed on June 30..
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18.2   Learning Objective 18-2 1) The entry to record MidIowa.net selling 800 shares of $6.00 par value common stock at $8.00 would be to: A) debit Cash $6,400; credit Common Stock $4,800; credit Paid-in Capital in Excess of Par Value-Common $1,600. B) debit Cash $4,800; credit Common Stock $4,800. C) debit Cash $6,400; debit.
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11) When treasury stock is reissued for more than cost: A) debit Cash; credit Treasury Stock and Paid-in Capital from Treasury Stock. B) debit Cash; credit Common Stock and Paid-in Capital from Common Stock. C) debit Cash; credit Treasury Stock. D) debit Cash; credit Treasury Stock and Retained Earnings. 12) Farm and Supply reissued 100.
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21) The primary difference between secured bonds and debenture bonds is: A) debenture bonds are paid on the same maturity date while secured bonds are paid on multiple dates. B) secured bonds are backed with specific assets while debenture bonds are not. C) secured bonds are registered with the issuing company while debenture.
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18.3   Learning Objective 18-3 1) If preferred dividends are limited to the stated rate of dividend, the preferred stock is: A) non-cumulative. B) cumulative. C) participating. D) nonparticipating. 2) Preferred stock that is given a right to share with the common stock in dividends in excess of a stated preferred dividend rate is called: A) nonparticipating. B) participating. C).
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16) Alpha-Omega Industries has 30,000 shares of $12 par common stock and 15,000 shares of $50 par, 5% preferred stock outstanding. Total dividends available are $162,000. Compute the dividends to be distributed to preferred and common stockholders under the following condition. The preferred stock is participating and non-cumulative with no dividends.
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41) The interest paid to bondholders is determined by: A) multiplying the bond's annual rate of interest by the face value. B) multiplying the market rate of interest by the face value. C) dividing the bond's annual rate of interest by the face value. D) dividing the face value by the bond's annual rate.
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31) R. Red formed a corporation with an authorization of 20,000 shares of $50 par, 6% non-cumulative preferred stock and 100,000 shares of $10 par common stock. The following selected transactions were completed during the first year of operations. Journalize the transactions omitting explanations. Jan10Issued 20,000 shares of common stock at.
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19.1   Learning Objective 19-1 1) The price a corporation pays when it reserves the right to retire or redeem stock at a specific price is the: A) redemption value. B) book value per share. C) dividend per share. D) market value. 2) The price at which shares are bought and sold on the open market is.
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11) The Zonga Corporation Stockholders' Equity section includes the following: Preferred Stock $ 22,000 Common Stock 48,000 Paid-in Capital in Excess of Par-Preferred 2,980 Paid-in Capital in Excess of Par-Common 3,400 Retained Earnings 7,350 Total paid-in capital is: A) $83,730. B) $76,380. C) $70,000. D) $77,350. 12) The Collins Corporation Stockholders' Equity section includes the following: Preferred Stock $ 12,000 Common Stock 15,000 Paid-in Capital in Excess of Par-Preferred 2,700 Paid-in Capital in.
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19.3   Learning Objective 19-3 1) Treasury stock was purchased and recorded as an asset. This error would cause: A) the period end assets to be understated. B) the period end liabilities to be overstated. C) the period end stockholders' equity to be overstated. D) None of the above is correct. 2) When treasury stock was sold.
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18.4   Learning Objective 18-4 1) The journal entry for the receipt of a cash payment on common stock subscriptions would include: A) debiting Subscriptions Receivable-Common Stock ; crediting Common Stock. B) debiting Common Stock; crediting Subscriptions Receivable-Common Stock. C) debiting Cash; crediting Subscriptions Receivable-Common Stock. D) debiting Cash; crediting Common Stock Subscribed. and apply basic.
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21) Hefley Corporation issued a 10%, $500,000, 8-year bond at 105. The entry to record the issuance transaction is to: A) debit Cash $500,000; credit Bonds Payable $500,000. B) debit Cash $525,000; credit Bonds Payable $525,000. C) debit Cash $525,000; credit Bonds Payable $500,000; credit Premium on Bonds Payable $25,000. D) debit Cash $500,000;.
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31) Declaration of a cash dividend was recorded by debiting Operations Expense and crediting Cash. This error would cause: A) the period end assets to be overstated. B) the period end liabilities to be overstated. C) the period end stockholders' equity to be understated. D) None of the above are correct. 32) The declaration of.
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19.2   Learning Objective 19-2 1) What are the annual dividends on preferred stock, $20 par, 2,000 shares authorized, 700 shares issued, and a dividend rate of 5%? A) $200 B) $20 C) $700 D) $70 2) What are the annual dividends on preferred stock, $20 par, 500 authorized, 250 shares issued, and a dividend rate of.
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19) Discuss and describe the major differences among the following common stock values: a. Par value b. Stated value c. Redemption value d. Market value e. Book value 20) From the following, determine the book value per share for preferred and common stocks, assuming $2,000 of dividends are in arrears on the preferred stock. Stockholders' Equity Preferred Stock,.
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17.5   Learning Objective 17-5 1) When a partnership is terminated, the assets are turned into cash and obligations are paid. This process is called: A) dissolution. B) termination. C) realization. D) None of the above. 2) The first step take in liquidating a partnership is to: A) sell the assets. B) divide profits on assets with partners. C) pay.
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21) Dividends in arrears occur when the company does not pay dividends to: A) cumulative preferred stockholders. B) non-cumulative preferred stockholders. C) participating preferred stockholders. D) non-participating common stockholders. 22) Par value is equal to: A) market value of the stock. B) the amount stated in the charter or legal capital. C) retained earnings. D) the initial price at.
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21) Baxter Corporation has 1,000 shares of $5 par value common stock issued and outstanding. Journalize the following Baxter transactions for 20XX: Feb.1Purchased 200 shares of treasury stock at $6.00. 20Declared a $2.00 per share cash dividend payable on March 15 to stockholders of record March 1. Mar.15Paid the cash dividend. May10Declared a 10% stock dividend..
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19.4   Learning Objective 19-4 1) Providing services to a credit customer was recorded with a debit to Cash and a credit to Retained Earnings. This error would cause: A) the period's net income to be understated. B) the period end liabilities to be understated. C) the total period end stockholders' equity to be understated. D).
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21) Prior period adjustments are included in the statement of retained earnings. 22) In the closing process for corporations, Retained Earnings is used rather than Capital. 23) The statement of retained earnings includes the account Preferred Stock. Using the following accounts: [1]Cash [2]Dividends payable [3]Preferred stock [4]Common stock [5]Dividend distributable [6]Paid-in capital in excess of par common stock [7]Paid-in capital.
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21) A stock-split journal entry would include a: A) debit to Retained Earnings and a credit to Common Stock. B) debit to Common Stock and a credit to Cash. C) debit to Common Stock Dividend Distributable and a credit Common Stock. D) memorandum notation only. 22) The retained earnings section after a two-for-one stock split.
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Given the following accounts: [1] Cash [2]Accounts receivable [3]Allowance for doubtful accounts [4]Merchandise inventory [5]Store supplies [6]Store equipment [7]Accumulated depreciation [8]Notes payable [9]Accounts payable [10]Able Partner's Capital [11]Baker Partner's Capital [12]Able Partner's withdrawals [13]Baker Partner's withdrawals [14]Income summary [15]Service revenue [16]Gain on realization [17]Loss on realization Indicate the account(s) to be debited and credited to record the following transactions. 20) Able partner invested cash in the business. Debit ________ &.
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11) Authorized capital stock is: A) shares listed in the charter. B) shares issued to the corporation's officers. C) shares sold and in stockholder possession. D) shares that pay dividends. 12) Which of the following would normally not appear in the Stockholders' Equity section of the balance sheet? A) Cash B) Paid-in Capital C) Common Stock D) Preferred Stock 13).
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11) When a partnership is liquidated, the assets are sold and the cash realized is applied first to the: A) claims of creditors. B) partner with the largest investment. C) partners' equity accounts. D) partners according to their ownership interests. 12) The last step in a partnership liquidation is to divide any remaining proceeds between.
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32) Prepare a statement of retained earnings in proper form for White Corporation for the year ended December 31, 20xx, from the following: Retained Earnings, January 1, 20xx$2,000 Dividends paid during the year800 Net income for the year3,000 Correction of prior year error. Purchase of land recorded as rent expense1,000 33) Prepare a statement of retained.
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17.3   Learning Objective 17-3 1) Partners Brian, Josh, and Chad have capital balances of $7,000, $3,000, and $90,000, respectively. The losses for the year are $12,000. What will Josh's capital balance be if the three partners share profits and losses at a 2:2:6 ratio? A) $600 credit balance B) $1,000 debit balance C) $2,400.
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11) Bonds payable issued with collateral are called: A) debenture bonds. B) serial bonds. C) callable bonds. D) secured bonds. 12) Bonds that may be redeemed at a certain price level are known as: A) callable bonds. B) debenture bonds. C) serial bonds. D) convertible bonds. 13) Dividends paid to stockholders are: A) taxable to the recipient stockholder. B) taxable to the.
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20.2   Learning Objective 20-2 1) If a bond is issued at a premium, the effective interest rate is most likely ________ the contract interest rate. A) higher than B) lower than C) the same as D) Cannot be determined based on information given. 2) The entry to record the semiannual payment and amortization of the discount.
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11) Bond Interest Payable is reported as a: A) current liability on the balance sheet. B) current liability on the income statement. C) contra-liability on the balance sheet. D) contra-liability on the income statement. 12) The carrying value of bonds is calculated by: A) subtracting the Premium on Bonds Payable account balance from the Bonds Payable.
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