Question

11.Able Electronics Company issues a $1,000,000, 8%, 20-year mortgage note on January 1. The terms provide for semi-annual installment payments, exclusive of real estate taxes and insurance, of $58,276. After the first installment payment, the principal balance is

Select one:

a. $955,002.

b. $1,000,000.

c. $941,717.

d. $981,724.

e. $962,717.

14. G. Jones Corporation was organized on January 1, 2017, with authorized capital of 1,000,000 shares of $10 par value common stock. During 2017, Jones issued 40,000 shares at $12 per share, purchased 4,000 shares of treasury stock at $13 per share, and sold 4,000 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2017?

Select one:

a. $4,000

b. $84,000

c. $80,000

d. $76,000

e. $0

15.The purchase of treasury stock

Select one:

a. has no effect on common stock authorized, issued, or outstanding.

b. decreases common stock authorized.

c. decreases common stock issued.

d. decreases common stock outstanding.

e. decreases both common stock issued and common stock outstanding.

16. The Sorrento Skies Corporation issues 16,000 shares of $100 par value preferred stock for cash at $120 per share. The entry to record the transaction will consist of a debit to Cash for $1,920,000 and a credit or credits to

Select one:

a. Paid-in Capital from Preferred Stock for $1,920,000.

b. Preferred Stock for $1,600,000 and Paid-in Capital in Excess of Par—Preferred Stock for $320,000.

c. Preferred Stock for $1,600,000 and Retained Earnings for $320,000.

d. Preferred Stock for $1,920,000.

18. Vangaurd Corporation’s December 31, 2017 balance sheet showed the following:

8% preferred stock, $20 par value, cumulative, 20,000 shares

            authorized; 15,000 shares issued and outstanding                      $ 300,000

Common stock, $10 par value, 2,000,000 shares authorized;

            1,950,000 shares issued, 1,920,000 shares outstanding                  19,500,000

Paid-in capital in excess of par—preferred stock                                            60,000

Paid-in capital in excess of par—common stock                                            27,000,000

Retained earnings                                                                                                  7,500,000

Treasury stock (30,000 shares)                                                                       630,000

Vangaurd declared and paid a $96,000 cash dividend on December 31, 2017. If the company’s dividends in arrears prior to that date were $20,000, Vangaurd’s common stockholders received

Select one:

a. $44,000.

b. $56,000.

c. $52,000.

d. $76,000.

e. $0.

Answer 1