Question

1. A bond with a face value of $200,000 and a quoted price of 102¼ has a selling price of      
a. $240,450.      
b. $204,050.  
c. $200,450.  
d. $204,500.

2. If the market interest rate is greater than the contractual interest rate, bonds will sell  
a. at a premium.  
b. at face value.  
c. at a discount.  
d. only after the stated interest rate is increased.

3. If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000,  
a. Common Stock will be credited for $140,000.  
b. Paid-In Capital in Excess of Par will be credited for $20,000.  
c. Paid-In Capital in Excess of Par will be credited for $120,000.  
d. Cash will be debited for $120,000.

4. Which of the following represents the largest number of common shares?      
a. Treasury shares      
b. Issued shares
c. Outstanding shares
d. Authorized shares

5. If Keene Company issues 4,500 shares of $5 par value common stock for $80,000, the account  
a. Common Stock will be credited for $22,500.  
b. Paid-in Capital in Excess of Par will be credited for $22,500.
c. Paid-in Capital in Excess of Par will be credited for $80,000.
d. Cash will be debited for $57,500.

6. Start Inc. has 5,000 shares of 6%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2013. What is the annual dividend on the preferred stock?      
a. $60 per share  
b. $30,000 in total
c. $50,000 in total
d. $0.60 per share

7. Arm, Inc., has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2013. If the board of directors declares a $200,000 dividend, the  
  
a. preferred stockholders will receive 1/10th of what the common stockholders will receive.  
b. preferred stockholders will receive the entire $200,000.  
c. $60,000 will be held as restricted retained earnings and paid out at some future date.  
d. preferred stockholders will receive $60,000 and the common stockholders will receive $140,000.

PLEASE HELP FAST AND ALL IN ACCOUNTING. I WILL RATE 5 STARS

Answer 1

1	Selling price =2,000*$102.25 =$204,500
	So Option D is answer
2	If the market Interest rate is greater than the stated interest rate then it means that the bond is issued
	at discount
	So Option C is answer
3	Paid in capital in excess of par will be credited by $120,000[$140,000-(4000*$5)]
	So Option C is answer
4	Authorized shares has the largest no. of common shares
	So Option D is answer
5	Common stock will be credited by $22,500(4,500 shares*$5)
	So Option A is answer
6	Annual Dividend on preferred shares =5,000 shares*$100*6% =$30,000
	So Option B is answer
7	Dividend for preferred shares =10,000 shares*$100*6% =$60,000
	Dividend for Common shares =$200,000 - $60,000 =$140,000
	So Option D is answer