On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as r

Question

On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the journal entry that should be recorded upon signing the note?

Options:

Debit Accounts Receivable $24,000; credit Notes Receivable $24,000

Debit Accounts Payable $24,000; credit Notes Payable $24,000

Debit Accounts Payable $24,160; credit Notes Payable $24,160

Debit Notes Payable $24,000; debit Interest Expense $160; credit Accounts Payable $24,160

Debit Notes Payable $24,000; debit Interest Expense $160; credit Cash $24,160

The following data has been collected about Keller Company's stockholders' equity accounts:

Assuming the treasury shares were all purchased at the same price, the number of shares of treasury stock is:

Options:

1,10.

1,000.

575.

11,000.

21,000.

Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 20 of the shares at $38 per share. What is the balance in the Treasury Stock account on August 2?

Options:

$5,050.

$2,600.

$100.

$1,200.

$0.

Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500

Explanation / Answer

a) Debit Accounts Payable $24,000; credit Notes Payable $24,000

b) 21,000

c) 30*$40 = 1200

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