sylin
Dec 6, 2012, 07:22 PM
I'm in financial accounting this semester, but I just can't seem to get these questions right. Please help...
A bond issue with a face amount of $501,000 bears interest at the rate of 10%. The current market rate of interest is 11%. These bonds will sell at a price that is:
A) The answer cannot be determined from the information provided
B)Less than $501,000.
C)Equal to $501,000.
D)More than $501,00
When a company issues 37,000 shares of $2 par value common stock for $20 per share, the journal entry for this issuance would include:
A)A debit to additional paid-in capital for $74,000
B)A credit to additional paid-in capital for $666,000
C)A debit to cash for $74,000
D)A credit to common stock for $740,000
A company issued 1,300 shares of $7 par value preferred stock for $8 per share. What is true about the journal entry to record the issuance?
A)Credit Preferred Stock $10,400
B)Debit Preferred Stock $10,400
C)Credit Additional Paid-In Capital $1,300
D)Credit Cash $10,400
The board of directors of Capstone Inc. declared a $.50 per share cash dividend on its $1 par common stock. On the date of declaration, there were 42,000 shares authorized, 24,000 shares issued, and 6,000 shares held as treasury stock. What is the entry for the dividend declaration?
A)
Dividends debit 12,000
Cash credit 12,000
B)
Dividends debit 9,000
Cash credit 9,000
C)
Dividends debit 9,000
Dividends payable credit 9,000
Rachel's Recordings reported net income of $270,000. Beginning balances in accounts receivable and accounts payable were $20,000 and $22,000 respectively. Ending balances in these accounts were $12,500 and $29,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:
A)$277,500
B)$270,000
C)$284,500
Assume net income was $160,000, depreciation expense was $6,200, accounts receivable increased by $11,000, and accounts payable increased by $2,900. The amount of cash flows from operating activities is:
A)$153,800
B)$160,000
C)$158,100
In 2012, Hope Company incurred sales on account of $183,000. The company also has the following information:
December 31, 2011 December 31, 2012
Accounts Receivable $61,000 $27,000
Accounts Payable $69,000 $48,000
What is the amount of cash received from customers for Hope Company in 2012?
A)$149,000
B)$217,000
C)$183,000
Given the information below, what is the company's gross profit?
Sales Revenue $325,000
Accounts Receivable $51,000
Ending Inventory $104,000
Cost of Goods Sold $235,000
Sales Returns $27,000
A)$67,000
B)$259,000
C)63,000
On December 2, Coley Corp. reacquired 1,800 shares of its $3 par value common stock for $25 each. On December 20, Coley Corp. reissued 1,400 shares for $13 each. Which of the following is correct regarding the journal entry for the reissued shares?
A)Debit Cash $23,400
B)Credit Treasury Stock $35,000
C)Credit Treasury Stock $18,200
The following information pertains to Alpha Computing at the end of 2012:
Assets $978,000
Liabilities $576,000
Net Income $87,000
Common Stock $361,000
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2012.
What amount of dividends did the company pay in 2012?
A)$46,000
B)$44,000
C)$41,000
A bond issue with a face amount of $501,000 bears interest at the rate of 10%. The current market rate of interest is 11%. These bonds will sell at a price that is:
A) The answer cannot be determined from the information provided
B)Less than $501,000.
C)Equal to $501,000.
D)More than $501,00
When a company issues 37,000 shares of $2 par value common stock for $20 per share, the journal entry for this issuance would include:
A)A debit to additional paid-in capital for $74,000
B)A credit to additional paid-in capital for $666,000
C)A debit to cash for $74,000
D)A credit to common stock for $740,000
A company issued 1,300 shares of $7 par value preferred stock for $8 per share. What is true about the journal entry to record the issuance?
A)Credit Preferred Stock $10,400
B)Debit Preferred Stock $10,400
C)Credit Additional Paid-In Capital $1,300
D)Credit Cash $10,400
The board of directors of Capstone Inc. declared a $.50 per share cash dividend on its $1 par common stock. On the date of declaration, there were 42,000 shares authorized, 24,000 shares issued, and 6,000 shares held as treasury stock. What is the entry for the dividend declaration?
A)
Dividends debit 12,000
Cash credit 12,000
B)
Dividends debit 9,000
Cash credit 9,000
C)
Dividends debit 9,000
Dividends payable credit 9,000
Rachel's Recordings reported net income of $270,000. Beginning balances in accounts receivable and accounts payable were $20,000 and $22,000 respectively. Ending balances in these accounts were $12,500 and $29,000, respectively. Assuming that all relevant information has been presented, Rachel's cash flows from operating activities would be:
A)$277,500
B)$270,000
C)$284,500
Assume net income was $160,000, depreciation expense was $6,200, accounts receivable increased by $11,000, and accounts payable increased by $2,900. The amount of cash flows from operating activities is:
A)$153,800
B)$160,000
C)$158,100
In 2012, Hope Company incurred sales on account of $183,000. The company also has the following information:
December 31, 2011 December 31, 2012
Accounts Receivable $61,000 $27,000
Accounts Payable $69,000 $48,000
What is the amount of cash received from customers for Hope Company in 2012?
A)$149,000
B)$217,000
C)$183,000
Given the information below, what is the company's gross profit?
Sales Revenue $325,000
Accounts Receivable $51,000
Ending Inventory $104,000
Cost of Goods Sold $235,000
Sales Returns $27,000
A)$67,000
B)$259,000
C)63,000
On December 2, Coley Corp. reacquired 1,800 shares of its $3 par value common stock for $25 each. On December 20, Coley Corp. reissued 1,400 shares for $13 each. Which of the following is correct regarding the journal entry for the reissued shares?
A)Debit Cash $23,400
B)Credit Treasury Stock $35,000
C)Credit Treasury Stock $18,200
The following information pertains to Alpha Computing at the end of 2012:
Assets $978,000
Liabilities $576,000
Net Income $87,000
Common Stock $361,000
Alpha Computing's Retained Earnings account had a zero balance at the beginning of 2012.
What amount of dividends did the company pay in 2012?
A)$46,000
B)$44,000
C)$41,000