exam and the Scantron sheet. ADD exam. It immediately write your name on both th
ID: 2489749 • Letter: E
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exam and the Scantron sheet. ADD exam. It immediately write your name on both the When you are finished turn in the antron next to TEST NO. and your Scantron sheet. ONLY the SCANTRON sheet will be ce marked on the SCANTRON sheet) aaa TAMuccCode of Ethics requires that students conduct themselves in accordance with the highest stan academic honesty, Academic misconduct for which a student is subject to penalty includes all forms of che such as icit possession of examinations or forgeryplagiarism examination materials, , or MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. ) Bonds with an 8% interest rate were issued when the market rate of interest was 9%. The quoted bond A) the price cannot be determined. B) 100. C) less than 100, D) greater than 100. 2) Hornbeck Company issued $100,000 bonds payable with a 7% interest rate at a price of 97. The journa record the issue of the bond includes: A) a debit to Bonds Payable $100,000 B) a credit to Cash, $97,000. C) a debit to Discount on Bonds Payable, $3,000. D) all of these answers. 3) Which of the following statements regarding a stock split is true? A) A stock split decreases retained earnings. B) Stock splits increase the par value per share. O) Stock splits are the same as stock dividends. D) Stock splits do not require a journal entry. 4) Which of the following statements regarding dividends is true? A) Some companies do not pay dividends even when the company is profitable. B) Cash dividends and stock dividends both decrease total stockholders' equity. C) A corporation has a legal obligation to pay dividends each year. D) Stock dividends immediately increase the total value of the stockholders' investment For a business to be considered a corporation: A) it must be organized as a separate legal entity. B) its stock must be sold in extremely large amounts. it must issue both common and preferred stock. Oit must pay dividends.Explanation / Answer
1) less than 100 option c
Bonds sell at less than 100% if the market rate is greater than the stated rate.
2) option c
3) D
Stock split do not require a journal entry ,
we generally increase the shares and decrease the par value
4) a some companies do not pay dividends even when they are profitable
5) option a
17) Debited to retained earnings
18) current liability
19) any long term debt due during the current period
20) ( 2000,000 - 100,000) .34 = $646,000
Debit to dividedns declared and credit ti dividend payable for $646,000
21) Cash dividends paid to stockholders reduce net income
22) 130,500 + 19,000 + 5000 = $154,500
23) 200,000 @6% *3/12
Debit interest expense $3000 and credit to interest payable
Cash $97,000 Discount on bonds 3,000 To Bonds payable $100,000Related Questions
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