24) Gordon Corporation reported the following equity section on is current balan

Question

24) Gordon Corporation reported the following equity section on is current balance sheet The selling for $11.50 per share. Common stock, $5 par, 190,000 shares authorized, 140,000 shares issued $700,000 120,000 aid-in capital in excess of par-Common etained earnin otal stockholders' equity After a 2-for-1 stock split, what would be the number of issued shares? 24) A) 260,000 B) 240,000 C)120,000 D) 280,000 25) A bond is sold for an amount less than its face value. Which of the following statements A) The bond's stated rate is lower than the prevailing market rate at the time of sale. B) The bond's stated rate is the same as the prevailing market rate at the time of sale. C) The bond's stated rate is higher than the prevailing market rate at the time of sale. D) The bond is not secured by specific assets of the issuer. 26) A bond is sold for an amount higher than face value. Which of the following statemer A) The bond's stated rate is lower than the prevailing market rate at time of sale. B) The bond's stated rate is the same as the prevailing market rate at time of sale. C) The bond's stated rate is higher than the prevailing market rate at time of sale. D) The bond is not secured by specific assets of the issuer. 27) On June 1, 2015, Smith Services issued $36,000 of 8% bonds that mature in five yea semiannual interest payments on June 30 and December 31 of each year. On Decembe interest paid to bondholders? 27) A) S1440 B) S1,800 C) $3,600 D)2,880 28) The balance in the Bonds Payable Account is a credit of Account is a credit of $900. How much is the bond carrying amount? 28) A) S900 B) S68,000 C) $68,900 D) $67,100 9) On January 1, 2015, Carter Sales issued $15,000 in bonds for $14,700. They we nd pay semiannual interest. Carter Sales uses the straight-line method to amort sue of the bonds, the ledger balances appeared as follows

Explanation / Answer

24) Number of issued shares = 140000*2 = 280000 Answer: Option [D] 25) Answer: Option [A] 26) Answer: Option [C] 27) Interest paid = 36000*8%*1/2 = $1440 28) Answer: Option [C] [Bonds payable 68000+Credit in premium on bonds payable]

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