Acc final Flashcards
The amount of stock that may be issued according to the corporation’s chatter is referred to as the
Authorized stock
The shares of issued stock equals
Outstanding plus treasury stock
The date on which a cash dividend becomes a binding legal obligation is on the:
deceleration date
A current liability is a debt than can be paid:
Within a year
Which of the following is an appropriate general journal entry to record the decleration of cash dividends?
debit dividends, credit dividend payable
Cash flow from operating activities, as reported on the statement of cash flows under the indirect method, would include
Net Income
If Norben Company issues 6000 shares of $5 par value common stock for 210000, the account:
Paid in capital in excess of par value will be credited for 180000
If the market interest rate for a bond is higher than the standard rate, the bond will sell at
A Discount
A corporation has the following account balances: common stock, $1 par value. 80000; Paid in Capital in Excess of Par Value, 27000000, Based on this information, the:
number of shares issued is 80000
Sales Taxes collected by a retailer are recorded by
Crediting sales taxes payable
If common stock is issued for an amount greater than par value, the excess should be credited to
Paid-in capital in excess of par value
The current portion of long-term debt should
be reclassified as a current liability
The statement of cash flows:
Summarizes the operating, financing, and investing actives of an entity
Unearned rent Revenue :
is reported as a current liability
McGoff company deposits 20,000 in a fund at the end of each year for 5 years. The fund pays interest of 4% compounded annually. the balance in the fund at the end of 5 years is computed by multiplying:
20,000 by the future value of an annuity factor
look at number 19 on review
OK
Liabilites are classified on the balance sheet as:
Current or long term liability
If the marekt rate of interest is 10% a 10,000, 12%, 10 year bond that pays interest annually would sell at an amount
Greater than face value
Dividends in arrears on cumulative preferred stock:
Must be paid before common stock holders can receive a dividend
Treasury Stock is :
A corporations own stock, which has been reacquired and held for future use
A 100,000, 6%, 5 year note payable that pays interest quarterly would be discounted back to its present value by using tables that would indicate which of the following period interest combinations?
20 interest periods. 1.5% interest
Peninsula Company reported net income of 290,000 for the year. During the year, accounts receivable increased by 21,000, accounts payable decreased by 9000 and depreciation expense of 45000 was recorded. Net Cash provided by operating activities for the year is
305,000
Bonds with a face value of 500,000 and a quoted price of 102.25 have a selling price of
511,250
The category that is generally considered to be the best measure of a companys ability to continues as a going concern is
Cash flows from operating expenses
Starting with net income and adjusting it for items affects reported net income but didn’t effect cash:
Indirect method
Look over question 29
OK
Logan Corporation issues 70,000 shares of 50 per value preferred stock for cash at 60 per share. The entry to record the transaction will consist of a debit to cash for 42,000,000 and a credit to
preferred stock for 3.5 mil and (paid in excess preferred of 700k)
The interest charged on a 300,000 note payable at the rate of 6% on a 90 day note would be:
4500
The following totals for the month of April were taken from the payroll records of Metz Company
salaries-90,000
FICA-6885
Answer: debit to salaries and wages expense
On the dividend record date:
no entry is required
What is the total stockholder’s equity based on the following account balances: common stock 2.3 mil, paid in capital, 120K, net earnings 57k, treasury stock 60k
2,930,000
A cash register tape shows cash sales of 8,000 and sales taxes of 400. The journal entry to record the information is
debit cash 8400, credit sales revenue 8000, sales tax payable 400
Lantz company purchased 2500 shares of its own previously issued 10 par common stock or 62500
Kaplan’s total stockholders equity decreased by 62500
Moss county bank agrees to lend the sadiki brick company $500000 on January 1. Sadowski Brick Company signs a $500000, 6%, 9 month note. What is the adjusting entry required if Sadowski Brick Company prepares finical statement of June
Debit to interest expense and credit to interest payable
Bonds with a face value of 600,000 and a quoted price of 98.5
selling price is 591,000
