‘option Or (2) purchase them on the open market ‘Equal amounts. 3 SF Debit common dividends < Debsi comman dividends payable ¢ Debit retuned Larrungs $1 10000, 2 Comics company holdsSS00000f 8% bonds a» a held to maturity security which of the following is correct journal entry to record the receipt of the semisanua! ‘interest payment? > Wctat Cash $4000, Credit long term investment $4000 ¢- Debut Cash $4000, Credit interest revenue $4000 he bibpheed Qcrributed tn excess of pany are Acbouis he $5000 # $100000 bond issue com ertible into 2000 shares Ne eee ee ee eee ' i 52008, yatan of tho bade io $118008 and te cock b quoted os market at S60 per share, If the bands are com erted amouul is ‘ia excess of par to be recorded ow the coi of the bowds? b $2000, ©. $3200 D- $4000 pense De Prepaid tes January 1. On May 20 the same year, Adidas corporation declared total cash dividend» the balance im Nike carworation lowe term iay estment Adidas coraoc ation account a of9. Acompany received cash proceeds $206,948 on a bond issue with a pat value of $200,000. The difference between par value and issue price fo this bond is recorded as a: (1 Point) * O Credit to Interest Income © Credit to Discount on Bonds Payable O Debit to Discount on Bonds Payable O Debit to Premium on Bonds Payable« = eer eb THe fs - © Ge Cemetery | 5 SRE A Ly car semtalenest mote payable bs imecd by » company. The sote requires equal payments of principal piu accrued interest be et oe em oh each pear wn Segrember BH The present y shor of a8 smmaity factor for 3 years at 6% bs 26730. The payment will be: “s 6 a ca 4) $1223 42 Aom- ie, + « ees ~ Home Edt Comment coment Page end Compony Sad ot et of S9R00. The weghndaveragy commas shares ousting wee 8108 The company dete 52700 dea eemtsne tnd neperecgnngptred tek Tse seas oer tc wemnotons The compooy aan ee asa ‘© gay scares that compu dead ae to held mau equ scrtcstha tae matey vale peer taneont A company's otal abies dived by seta socbelders” equity ic called the: Dew aset ra c-Earmings perature D- Retna otal mets at ‘Deca andes 1D. Which ofthe flowing x remem why corporntion rent a debt and equity secre fo They wittomoe mos ew lineal bates Br They waihto gin Sor of a cempetor S-They neencen cath a 51.200.000. There were rommon shares outitanding daring 2021. There were eo chaugs during 30 ‘sumer shares outineding What othe nied EPS for yar S02) sta bss prin 1S. Entre for csh dvidends ar required onthe Ress dae athe payer de ane rng moe at te ‘nine as & SESE Ei eee Ty er coarse Memon aS ma testo teem er [2 edspma wn net ecm ran tei ‘Sten scom imeniment $259 » © armen 250 Bistewes' ca = short icon imstmeas "S59 2 Were icy 6 A4. A lease where the intent is temporary use of the property by the lessee with continued ownership of the property by the lessor is called capital lease (1 Point) * oO True © False6 Home Edit ‘omment | - Acempany mars Boe mo-senr bends on December 31,2028 with interest paymens 3 | The fourth interest payment on December 31,2022. 4] Bend redemption at maturity. je. 31 distributed the stock dividend declared on December |. Le SE +A SB OD19) Tier joer entry erquired for December 15 tremwction @oeid imctede eb eo owes ac mrtas ecimaa YR) YL sel wr dovidbctnd 109 exmsee $54) nb ie cat YH 4) C redat ws umerest revernses $5) Matching my imues 8%, two-year bonds on December 31,2620, with » par value of 57,000 sed seminn sual interest payments. Ow the invue daw, the sumual market rate lor these bonds is 6%, w hich im plies « ling rice of $7260. insuance of bonds on December 31,2028. ! The second interest payment on December 31, 2021. [TY Tike fourth interest payment om December 31, 2022. Cas C | Cash | Premium on bonds payable a | Bonds pay able ta. Af qutets eduey Commas stock «, a nsued for S15 per share when the c: Company was created According to the table preseated match the correct catry for cach amet oe SE et a a sae are of A [ee eentaie a ieee pmwmuo sexk +0 T Thesis AR Re camden tale _e C5 drsdead sonia - us* (ce 1) .If a corporation has only one class of stock, it is referred to as preferred stock .2 Fatse © True + (au 1) ‘Consolidated financial statements ? None is correct ‘Show the results of operations, cash flows, and the financial position of the subsidiary only Include the investments account on the balance sheet ‘Show the results of operations, cash flows, and the financial position of the parent only haw the vaults of operations cash flows, ani he (nancial positon of al enties under a parent's contol @100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 300 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include: (1 Point) * -. A debit to Organization Expenses for + $5,000 O A credit to Paid-in Capital in Excess of Par Value, Common Stock for $5,000 A debit to Organization Expenses for O $3,000 A debit to Paid-in Capital in Excess of Par Value, Common Stock for $2,000 O O A credit to Common Stock for $5,000o-~ + Ao Ga _ ‘True or False sc capt state atmo repo oh mie and died earangs per share cles tea elatrsbup auch as mvextnens antes, bras ar cert ates of dep i rot sia 100 snes of $80 coon ck, aan oye $5000 of tock oesanding 4 Calible pecteted sto jv its ers the option of chang | jel ve prteted shared ito common, “pete Fat — | Cocporation isauejeeterted stock W aise capita without strficing control ofthe corpotatnon anor to mcrease the return earned Py common area ee Wier nt dons so phs os SOmpanics unt esa Dr shares etanding before the lock divans o pit none ocompute he weg | sera ot shares | { Ts common ways of eg Bray Ber malay ae Tagine OF parca hem on he op market 1 [Ruch emir sack rede te comperaon ames and socolsen oyu Ty Fa amour O° The da of end the date ht decir sete To fy con oki shar dr Foi vick rs meyped avs pt sarc by the compereters bd of Sreors MWCO 1. A company declared « 90.5 per share cxsh ddd, the company has 200000 Shares nuthoried, 190000 shares ied, Jounal entry te record the iv idewd declaration bs 2°Ttat tuna ecole pone Sts Credit can $1040 e eet commn dled payable $1000 Credit cash $01 ‘Ut etme ang 311000, Credit common dai pale $1000 1 Camis compaay nenesSougbet 83s bands a's held fo matory security Which ofthe followings correct journal cary recend the receipt of he sian tntrea payee ie sr $400, Cred ang am sventmer $4000 b> Debs Cash $200, Cre long em mvestment $2000 {Deut Cath $400, Cred Interest evere $0000 spt Gn Sh, i meme par value of S100000, amortized discount on ‘S4800 . the company eetired these bomds by buyin tv tea bsinn tbe merernent? COG se Da gan ‘warrants seca pe . tahini ces of a dete te & Lars corpernion| ‘5000 « 5100000 bwin iasve com erie into 2000 shares f comnenon sack pr aleS40) \ he me of te te mertand prema {alae of the bonds S100 dhe sok quot othe mart tS pr share, he bed ae cmt ‘Common wha he soul of paid Coptl ieee of pa tobe recorded ou te couverozn othe bow ssa De) Csuoo ston © Tie cot of bringing «corporation ate eisteact lnclading ep fes, promater fees and amowats pid Yo obtain a charter are called: Menge i apa Oya sapataca. Slay expetaen Pra es 5a corporation purchased 40% of Adidas corporation for 125000 on January 1 Ow May 20th saa yea, Adin corpora dre inks es ‘4 S00 Swear ed Adidas err stonfeorted met nce of 10000 the beac Ia Nike carmoraion ut Ween an iment Ada coronation cee eS elHome Eat Comment Convert. Page Fill & Sign” Quiz 2 - Stock warrants oubten Ging should classified ax: | az None 1s correct = © Reductions capital contributed in excess of par value abilities - Comelidated financial statements are appropriate when a a tavesee controls a iveste by awnership of more than 50% of the investees commen stock a: Truc. ~ When recording bonds interest, interest receivables ix reported as fixed assets in the balance sheet a- True b: False - Wan investor owns between 20% and 50%of an a tavatees Common stock, it is presumed that the investor has significant influence om the investee actus b- False ~ When s company has a complex capital structure , i must report both basic and diluted earnings per share . Toc b- False What effect w Rill the scquistion of treasury stock have ¢ 08 stockholders equity and earnings per share respectively? 2) Decrease and no2. BBC Corporation issued at a premium of $5,000 a $100,000 bond issue convertible into 2,000 shares of common stock (par value $40). At the time of the conversion, the unamortized premium is $2,000, the market value of the bonds is $110,000, and the stock is quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid-in capital in excess of par to be recorded on the conversion of the bonds? (1 Point) * ©) $32,0008. Acompany owns 9% bonds with a par value of $100,000 that pay interest on October 1 and April 1. The amount of interest accrued on December 31 (the company's year-end) would be: (1 Point) * © $1,500 @ $2,250 © $9,000 ©) $750 ©) $4,500A corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 6 par value common stock. During the first month of operation, the corporation issued 300 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation The * (chai 1) entry to record this transaction would include A credit to Common Stock for $5,000 A debit to rization Expenses for 85000 @ A cre to Paid Captain Excess of Par Value, Common Stock for $5,000 A debit to Pardsn Capital n Excess of Par Value, Common Stock for $2000 AA debit to Organization Expenses for $3,000 Accompany received cash proceeds of $206,948 on a bond issue with a par value of $200,000. 7 * (aa 1) The difference between par value and issue price for this bond is recorded as a Credit to Interest Income. Debit to Discount on Bonds Payable Credit to Premium on Bonds Payabie @RR Aes 2 ees a_i A company owns 9% bonds with a par value of $100,000 that pay interest on October 1 and Apri 1U 1 The amount of interest accrued on December 31 (the company's year-end) would be 19.000 BBC Corporation issued at a premium of $5,000 a $100,000 bond issue convertible nto 2.00011 shares af common stock (par value $40) At the time of the conversion. the unamortized ‘premium is $2,000, the market value of the bonds 1s $110,000, and the stock 1s quoted on the market at $60 per share. If the bonds are converted into common, what is the amount of paid +) 2capital in excess of par to be recorded on the conversion of the bondsThe contract between the bond issuer and the bondholders, which identifies the nights and 6 ‘obligations of the parties, 's called a(n) aoue Debenture sere @ Bond Mortgage contiact Installment note (one. 1) When computing diluted earnings per share, convertible bonds Assumed converted only if they are antidilutive inverted whether they are diutive oF antidilulive Ignored Assumed converted only ney are aust @10. If a corporation has only one class of stock, it is referred to as preferred stock. (1 Point) * © True oO False6. When computing diluted earnings per share, convertible bonds are: (1 Point) * oO Ignored (O} Assumed converted only if they are dilutive Assumed converted only if they are antidilutive O Assumed converted whether they are dilu- tive or antidilutiveo-~ + Ao Ga _ ‘True or False sc capt state atmo repo oh mie and died earangs per share cles tea elatrsbup auch as mvextnens antes, bras ar cert ates of dep i rot sia 100 snes of $80 coon ck, aan oye $5000 of tock oesanding 4 Calible pecteted sto jv its ers the option of chang | jel ve prteted shared ito common, “pete Fat — | Cocporation isauejeeterted stock W aise capita without strficing control ofthe corpotatnon anor to mcrease the return earned Py common area ee Wier nt dons so phs os SOmpanics unt esa Dr shares etanding before the lock divans o pit none ocompute he weg | sera ot shares | { Ts common ways of eg Bray Ber malay ae Tagine OF parca hem on he op market 1 [Ruch emir sack rede te comperaon ames and socolsen oyu Ty Fa amour O° The da of end the date ht decir sete To fy con oki shar dr Foi vick rs meyped avs pt sarc by the compereters bd of Sreors MWCO 1. A company declared « 90.5 per share cxsh ddd, the company has 200000 Shares nuthoried, 190000 shares ied, Jounal entry te record the iv idewd declaration bs 2°Ttat tuna ecole pone Sts Credit can $1040 e eet commn dled payable $1000 Credit cash $01 ‘Ut etme ang 311000, Credit common dai pale $1000 1 Camis compaay nenesSougbet 83s bands a's held fo matory security Which ofthe followings correct journal cary recend the receipt of he sian tntrea payee ie sr $400, Cred ang am sventmer $4000 b> Debs Cash $200, Cre long em mvestment $2000 {Deut Cath $400, Cred Interest evere $0000 spt Gn Sh, i meme par value of S100000, amortized discount on ‘S4800 . the company eetired these bomds by buyin tv tea bsinn tbe merernent? COG se Da gan ‘warrants seca pe . tahini ces of a dete te & Lars corpernion| ‘5000 « 5100000 bwin iasve com erie into 2000 shares f comnenon sack pr aleS40) \ he me of te te mertand prema {alae of the bonds S100 dhe sok quot othe mart tS pr share, he bed ae cmt ‘Common wha he soul of paid Coptl ieee of pa tobe recorded ou te couverozn othe bow ssa De) Csuoo ston © Tie cot of bringing «corporation ate eisteact lnclading ep fes, promater fees and amowats pid Yo obtain a charter are called: Menge i apa Oya sapataca. Slay expetaen Pra es 5a corporation purchased 40% of Adidas corporation for 125000 on January 1 Ow May 20th saa yea, Adin corpora dre inks es ‘4 S00 Swear ed Adidas err stonfeorted met nce of 10000 the beac Ia Nike carmoraion ut Ween an iment Ada coronation cee eS elSSS eo STC Corporation owns 3,000 shares of Vodafone Corporation. Vodafone Corporation has 25,000 & \ shares of stock outstanding. Vodafone paid $4 Per share in cash dividends to its stockholders, * (42a: 1) The entry to record the receipt of these dividends is. Debit Cash, $12,000, credit Lang Term Investments, 812.000 Debit Cash, $12,000, cred Dividend Revenve $12,900 @ Debit Unrealized Gain Equity, $12.00 credit Cash, $12.00 Debt Long-Term Investment 12.000, crest Gash, $12.00 Debit Cash, $12,000. credit Unrealized Gam-Equty, $12,0007. The contract between the bond issuer and the bondholders, which identifies the rights and obligations of the parties, is called a(n): (1 Point) * oO Mortgage oO Mortgage contract oO Installment note oO Debenture © Bond indenture11. STC Corporation owns 3,000 shares of Vodafone Corporation. Vodafone Corporation has 25,000 shares of stock outstanding. Vodafone paid $4 per share in cash dividends to its stockholders. The entry to record the receipt of these dividends is: (1 Point) * Debt Long-Term Investment, $12,000; credit Cash, $12,000 Debit Cash, $12,000; credit Long-Term Investments, $12,000corporation - exam + » Ose o > Home Edt Comment Convert’ «Page = FMA Sign” Protect Quiz 2 - Sock warrmuts oustanding should classified as: None 1 conc b> Assets ¢- Reductions capital contributed in excess of pas value - Linbulsties: - Comatidated financial statements are ee ceneneimiemmmentadimeaied Sa than 50% of the invesices common stock b- False - Wem coding oe latre,interentrece ls ep reported o fined amet ta the balance fe sheet > False - Man investor owns between 20% and S0%of aa, tavestres comense otek, is presemed that the ye lavestor hay sigaifican at influence on the investee ine. = When 2 company has a comple: capital structare, it must report beth basic and diluted eiigaieas alos. b- False9. Acompany received cash proceeds « $206,948 on a bond issue with a par value of $200,000. The difference between par value and issue price fo this bond is recorded as a: (1 Point) * O Credit to Interest Income © Credit to Discount on Bonds Payable OQ Debit to Discount on Bonds Payable O Debit to Premium on Bonds Payable3. Consolidated financial statements: (1 Point) * Show the results of operations, cash flows, O and the financial position of the subsidiary only Show the results of operations, cash flows, © and the financial position of all entities un- der a parent's control O None is correct Show the results of operations, cash flows, O and the financial position of the parent only. Include the investments account on the balance sheet