dr Coltpany sels $30,000 of bonds for an issue price of $55,000. Which of t corr
ID: 2515358 • Letter: D
Question
dr Coltpany sels $30,000 of bonds for an issue price of $55,000. Which of t correct? A. The bond sold at a price of 90.91, implying a discount of $5,000. B. The bond sold at a price of 90.91, implying a premium of $5,000. C. The bond sold at a price of 110.00, implying a discount of $5,000 bond sold at a price of 110.00, implying a premium of $5,000. 2. A corporate charter specifies that the company may issue up to 32 million shares of stoc sells 24 million shares to investors and later buys back 9.0 million shares. The current num stock after these transactions have been accounted for is: A. 23.0 million shares. B)9.0 million shares. 8.0 million shares. D. 15.0 million shares. 3. A company issues 108,000 shares of preferred stock for $44 a share. The stock has fixed annual rate of 10% and a par value of $11 per share. If sufficient dividends are declared, preferred stockhol of: A. $118,800 each year B. 10% of net income each year. C. $475,200 each year. D. $11 per share. 4. A company declared a S0.70 per share cash dividend to be paid next month. The company has 110,000 shares authorized, 47,000 shares issued, and 44,000 shares of common stock outstanding. What is the journ entry to record the dividend declaration? A. Debit Dividends and credit Dividends Payable for $32,900 B. Debit Dividends Payable and credit Cash for $32,900 C. Debit Dividends Payable and credit Cash for $77,000 D. Debit Dividends and credit Dividends Payable for $30,800 5. A company had 1,500,000 shares of $10 par value common stock outstanding. The amount of paid-in capital is $7,500,000, and Retained Earnings is $2,250,000. The company also had 10% preferred stock with a par value of $20. There were 200,000 authorized, 100.000 issued and f outstanding preferred stock. The company declared a total dividend orf $95.0. How stockholders expect to receive (in total dollars), if diviExplanation / Answer
Answer:
1. D
55000 / 50000 = 1.1 x 100 = 110 ; 55000 - 50000 = 5000
2.B.9 million Treasury stock
3.A.$118800 each year
108000 x 11 = 1188000 x 10% = $118800
4.D.Debit Dividends and credit Dividends Payable for $30800
44000 shares x $0.70 = $30800
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