Accounting Final

​Sara Company's Cash account shows an ending balance of $650. The bank statement shows a $29 service charge and an NSF check for $150. A $240 deposit is in​ transit, and outstanding checks total $420. What is Sahara​'s adjusted cash​ balance?

471

Marvin Corporation has the following information reported on the balance sheet as of December​ 31, 2017: Common​ Stock, $10 par value​ (authorized 20,000​ shares)=$80,000 Treasury Stock ​(2,000 ​shares)=$30,000 Based on the information​ above, how many shares of common stock are​ outstanding?

6.000

Bloom Corporation issued 60,000 shares of common stock. Bloom purchased 4,000 shares and later reissued 1,000 shares. How many shares are issued and​ outstanding?

60.000 issued and 57.000 outstanding

A bond with a face value of​ $90,000 and a quoted price of 106 has a selling price​ of:

90.000*1.06=95.400

perpetual inventory system

A detailed inventory system in which a company maintains the cost of each inventory item, and the records continuously show the inventory that should be on hand.

Sarbanes-Oxley Act

A law passed by Congress that requires the CEO and CFO to certify that their firm's financial statements are accurate. also requires that an outsider auditor must evaluate a public companys internal controls

preferred stock

A special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

periodic inventory system

An inventory system in which a company does not maintain detailed records of goods on hand throughout the period and determines the cost of goods sold only at the end of an accounting period.

journal entry for 2% bonus on $60.000 net income

B = .02(60.000-B) B = 1.200-.02B 1.02B = 1.200 B = 1.176

Madison Bank lends Neenah Paper Company $110,000 on January​ 1, 2017. Neenah signs a $110,000​, 6​%, 6-month note. The journal entry made by Neenah on January​ 1, 2017 will​ debit:

Cash for $110,000 and credit Notes Payable for $110,000.

per share cash dividend

EPS = (net income - preferred stock dividends) ÷ (outstanding shares) For example, if company ABCWXYZ has 20 million shares outstanding, had a net income of $10 million, and paid out a dividend of $1 million to its preferred stockholders for the last fiscal year; the EPS is 45 cents ($10 million - $1 million) ÷ (20 million shares outstanding).

discount bond

Market interest rate is higher than the contractual interest rate

cash dividend

On the date of declaration, the board of directors resolves to pay a certain dividend amount in cash to those investors holding the company's stock on a specific date. The date of record is the date on which dividends are assigned to the holders of the company's stock. On the date of payment, the company issues dividend payments.

Cash Basis Accounting

Reporting income when the cash is received and expenses when the cash is paid.

When bonds are issued at a​ discount, which of the following would be included in the journal entry to record the​ issuance? ​(check all that​ apply)

a debit to discount on bonds payable a credit to bonds payable

compound journal entry

a journal entry that is characterized by having multiple debits and or multiple credits

trial balance

a list of all accounts with their balances at a point in time

Straight-Line Amortization

a simplified method of amortizing a bond discount or premium that allocates an equal dollar amount to each interest period

FOB destination

a situation in which the buyer takes ownership at the delivery point

retailer

a type of merchandiser that buys merchandise either from a manufacturer or a wholesaler and then sells those goods to customers

promissory note

a written contract with a promise to pay a supplier a specific sum of money at a definite time

which of the following accounts is not closed

accumulated depreciation

Before a company can pay dividends to the common​ stockholders, the owners of cumulative preferred stock must​ receive:

all dividends in arrears plus the current year's dividends

bond investment that matures in four years. the investor plans to hold the bond for the full four years

amortized cost

purchase allowance

an amount granted to the purchaser as an incentive to keep goods that are not as ordered

asset

an economic resource that is expected to be of benefit in the future

which cost is NOT recorded as part of the cost of a building

annual building maintenance

accounts receivable

asset

cash

asset

land

asset

office supplies

asset

accounts payable is in

balance sheet

accounts receivable is in

balance sheet

cash is in

balance sheet

common stock is in

balance sheet

land is in

balance sheet

office supplies is in

balance sheet

accounting equation

basic tool of accounting states as assets = liabilities + equity

FOB shipping point

buyer takes title to the goods after the goods leave the sellers place of business

A company issues 1,000,000 shares of​ $0.50 par​ value, cumulative preferred stock for $18,000,000. The stated dividend is​ $1 per share. Which journal entry is needed for the​ sale?

debit cash 18.000.000 credit preferred stock 500.000 credit paid-in capital in excess of par-preferred 17.500.000

On March 15 th , ABC decided to sell 200 shares of its treasury stock it purchased in problem 8 at $12 per share.

debit cash 2.400 credit treasury stock - common 2.400

On Jun 30 th , 2019 ABC Inc issued 1,000 shares of preferred stock with $1 par value for $25 per share. Record the journal entry for the issuance of preferred stock at a premium

debit cash 25.000 credit preferred stock - $1 par value 1.000 credit paid-in capital in excess of par - preferred stock 24.000

Declared a $0.30 per share cash dividend on the common stock outstanding.

debit cash dividends credit common dividends payable

On November 15 th , 2019 UCA Inc declared a cash dividend of $2 per share on 10,000 shares of common stock. It paid out the dividends on December 1 st . Record the November 15 th Journal entry.

debit cash dividends 20.000 credit dividends payable - common 20.000

Kunze Corporation has​ $1 par value Common Stock with​ 100,000 shares authorized and​ 25,000 shares issued. The journal entry to record​ Kunze's purchase of 5000 shares of common stock at​ $4 per share would​ be:

debit treasury stock 20.000 credit cash 20.000

Kunze Corporation has​ $1 par value Common Stock with​ 100,000 shares authorized and​ 25,000 shares issued. The journal entry to record​ Kunze's purchase of 10,000 shares of common stock at $3 per share would​ be:

debit treasury stock 30.000 credit cash 30.000

purchased 2.200 shares of treasury stock at $24 per share

debit treasury stock 52.800 credit cash 52.800

Unearned Revenue: In the month of March, Wampus Cat Inc collected $1800 in cash for services to be provided equally over April, May and June of 2019. Each month they performed a third of the services per the agreement b. Record the entry on April 30 th , for services completed.

debit unearned revenue 600 credit service revenue 600

ABC Inc made sales on account of $50,000 on June 10 th . The company estimates their warranty cost will be 5% of sales. On June 30 th , they had an actual warranty cost of $750 they paid in cash b. Record the entry on 6/30 to record their actual warranty cost they paid.

debit warranty claim payable 750 credit cash 750

estimates warranty expense at 2% of sales of $430.000

debit warranty expense 8.600 credit estimated warranty payable 8.600

The journal entry to record a semiannual interest payment on a bond payable issued at par:

debits Interest Expense and credits Cash.

treasury stock has a

debit​ balance, the opposite of other​ stockholders' equity accounts.

liability

debts that are owed to creditors

expense

decreases in equity that occur in the course of selling goods or services

account

detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period

Journal entry recorded, disclosure recorded, or no action needed: Probable Contingent Liability that can no be estimated

disclosure is recorded

purchase discount

discount that businesses offer to purchasers as an incentive for early payment

company invested 45k in yale co stock. the investment represented 5% of the voting stock of yale co. if yale co stock investment paid dividends, what account is credited

dividend revenue

noncumulative stock

does not pay unpaid or omitted dividends

cumulative stock

entitles investors to missed dividends

common stock

equity

dividends

equity

rent expense

equity

salaries expense

equity

service revenue

equity

net loss

excess of total expenses over total revenues

net income

excess of total revenues over total expenses

available for sale debt investment

fair value

Which of the following is NOT considered to be an advantage of forming a​ corporation?

government regulation. double taxed?

rent expense is in

income statement

salaries expense is in

income statement

service revenue is in

income statement

revenue

increases in equity that occur in the course of selling goods or services

How does the declaration of a cash dividend affect the accounting​ equation?

increases to liabilities and a decrease to stockholders' equity

On December​ 31, 2018 Smart Touch Learning signed a $60,000 note payable. The note will be paid over five years with payments of $12,000 plus 6​% interest due on each December 31. Which of the following is true regarding the first payment made on December​ 31, 2019?

interest expense is 3.600

Wininger Corporation has 2,000 shares of​ 6%, $50 par​ value, cumulative preferred stock and​ 25,000 shares of​ $1 par value common stock outstanding on December​ 31, 2017 and December​ 31, 2018. The board of directors declared and paid a​ $2,000 dividend in 2017. In​ 2018, $18,000 of dividends are declared and paid. What are the dividends received by the common stockholders in​ 2018?

$8.000

arrears

involves the omitted dividends on cumulative preferred stock. For example, if a corporation has cumulative preferred stock and due to a shortage of cash decides to omit the dividend on those preferred shares, the preferred dividend is in arrears. The result of having these dividends in arrears is that the owners of the common stock cannot receive a dividend until the preferred stock's dividends in arrears are paid and the preferred stock's current year dividend is also paid. or late payments lol

The calculation to determine the number of outstanding shares of stock is the number​ of:

issued shares minus number of treasury shares

debit

left side of a t account

accounts payable

liability

chart of accounts

list of all accounts with their account numbers

how does treasury stock affect outstanding stock

maybe nothing. not too sure tho

on a post-closing trial balance? dividends

no

on a post-closing trial balance? interest expense

no

on a post-closing trial balance? rent expense

no

on a post-closing trial balance? service revenue

no

At December 31​ year-end, Crain Corporation has an $8,400 note receivable from a customer. Interest of 10​%has accrued for 10 months on the note. What will Crain's financial statements report for this situation at December​ 31

note receivable of 8400 and interest receivable of 700

Failure to record an accrued liability for wages earned by employees causes a company​ to:

overstate stockholders' equity

A company buys treasury stock for​ $10 per share. The company later sells the treasury stock for​ $11 per share. What is the difference between the resale price and the cost of the treasury stock​ called?

paid-in capital from treasury stock transactions

If a corporation issues 6000 shares of​ $5 par value common stock for​ $91,000, the journal entry would include a credit​ to:

paid-in capital in excess of par - common for $61.000

When a company issues common stock at a price per share greater than its par value per​ share, the excess should be credited​ to:

paid-in capital in excess of par-common

debtor

party to a credit transaction who takes on an obligation/payable

creditor

party who receives a receivable and will collect cash in the future

normally used for relatively inexpensive goods

periodic

achieves better control over merchandise inventory

perpetual

keeps a running computerized record of merchandise inventory

perpetual

uses bar codes to keep up to the minute records of inventory

perpetual

requires a physical count of inventory to determine the quantities on hand

perpetual and periodic

The carrying amount of bonds issued at a discount is calculated​ by:

premium on Bonds Payable is a credit, and it is added to the Bonds Payable account to determine the carrying amount.

ledger

record holding all the accounts of a business, changes in those accounts, and their balances

journal

record of transactions in date order

primary purpose of a stock split

reduce the market price of the stock per share and increase the number of shares

statement of retained earnings

report how the companys ret earnings balance changed from the beg to the end of the period

Accrual Basis Accounting

reporting income when it is earned and expenses when they are incurred

statement of cash flows

reports on a business cash receipts and cash payments during a period

balance sheet

reports on an entitys assets, liabilities, and stockholders equity as of a specific date

income statement

reports on an entitys revenues, expenses, and net income or loss for the period

dividends is in

retained earnings

statement of retained earnings with stocks

retained earnings + net income = a a - dividends - stock dividends declared = new retained earnings

credit

right side of a t account

invoice

sellers request for cash from the purchaser

normal balance

side of an account where increases are recorded

what increases paid-in capital by the same amount that it decreases retained earnings

stock dividend

what has no effect on total stockholders' equity

stock dividend + stock split

stock dividend

stock dividend is the issuance by a company of its common stock to its common shareholders without any consideration. If the company issues less than 25 percent of the total number of previously outstanding shares, then treat the transaction as a stock dividend. To record a stock dividend, transfer from retained earnings to the capital stock and additional paid-in capital accounts an amount equal to the fair value of the additional shares issued.

outstanding stock

stock in the hands of stockholders

An increase in the number of issued and outstanding shares of stock along with a proportional reduction in the​ stock's par value is​ a

stock split

in a balance sheet, treasury stock is

subtracted from the total paid-in capital + retained earnings

credit terms

terms of purchase or sale as stated on the invoice

authorized stock

the amount of stock that a corporation is authorized to sell as indicated in its charter

Orlando Corporation incorporated on January​ 2, 2017. During​ 2017, Orlando had the following​ transactions: issued 50,000 shares of common stock at $45 per share. The par value per share is​ $1. purchased 3,000 shares of treasury stock at $26 per share had net income of​ $400,000. What is the total amount of​ stockholders' equity as of December​ 31, 2017?

(50.000*$45)+400.000-(3000*$26)= 2.572.000

On December 31 st 2018, Stanford Inc received $15,000 cash in exchange for a 3 year, 5% note payable. Each year, they will pay $5,000 in principal plus interest. Prepare an amortization table for the life of the note. Also record the journal entry for the 12/31/18 transaction

(table in emailed study guide) Journal entry: debit cash 15.000 credit note payable 15.000

Bank reconciliation

-company -bank reconciliation -date -Bank: -balance, date -add: deposit in transit -sum the two -less: outstanding checks -subtract that from sum -Book: -balance, date -add: bank collection, interest revenue -less: service charge -adjusted book balance, date

balance sheet

-company name -balance sheet -date -assets -list all assets -total assets -liabilities -list all liabilities -total liabilities -stockholders equity -common stock -ret earn -total stockholders equity -total liabilities + stockholders equity

income statement

-company name -income statement -year ended _____________ -revenues: -list all revenues -total revenues -expenses: -list all expenses -total expenses -net income

statement of retained earnings

-company name -statement of ret earn -year ended ___________ -beginning ret earn -net income for the year -add previous two -dividends -end ret earn (subtract div from sum)

which of the following investments is most likely classified as a held to maturity debt investment

10 year bonds

On November​ 1, 2017, a company signed a promissory note. The interest and principal are due on July​ 1, 2018. What accounts relating to the note payable will be reported on the financial statements for the fiscal year ending December​ 31, 2017?

Short−term notes payable and interest payable will be reported on the balance sheet.

dividend

The portion of corporate profits paid out to stockholders

revenue recognition principle

The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.

what decreases both total assets and total stockholders' equity

cash dividend

What decreases retained earnings

cash dividend + stock dividend

what has no effect on liability

cash dividend + stock dividend + stock split

separation of duties is important for internal control of

cash payments and cash receipts

which of the following accounts may appear on a post-closing trial balance

cash, salaries payable, and retained earnings

If a corporation has only one class of​ stock, it is understood to​ be:

common stock

If a corporation issues 3,000 shares of​ $1 par value common stock for $10,000​, the journal entry would include a credit​ to:

common stock for $3.000

investment in more than 50% of the investee companys stock

consolidation

Double taxation means that​ the:

corporation pays taxes on its earnings and the shareholders pay taxes on the dividends received from the corporation.

costs of goods sold

cost of the merchandise inventory that the business has sold to customers

On January 1, Hanley Corporation issued $2,200,000, 10-year, 6% bonds at 102. The journal entry to record this transaction would include a:

credit to Premium on Bonds Payable $44,000.

company owns 25% of the voting stock of pink co. and can exercise significant influence, dividends received will be

credited to equity investments-pink co

If stock is issued for an asset other than​ cash, the asset should be recorded on the books of the corporation at​ the:

current market value of the asset

How should you record a capital expenditure

debit an asset

journalize the distribution of the stock dividend

debit common stock dividend distributable credit common stock

distributed the stock dividend

debit common stock dividend distributable credit common stock-$10 par value

Declared a 5% stock dividend on the common stock. The market value of Morrissey's stock was $24 per share.

debit stock dividends credit common stock dividend distributable credit paid-in capital in excess of par-common

journalize the purchase of treasury stock

debit treasury stock credit cash

issued stock

the number of shares sold to investors; includes treasury shares

Amortization

the reduction of a loan balance through payments made over a period of time

Which one of the following is NOT a​ stockholder's right of ownership in a​ corporation?

the right to decide if a dividend should be distributed

Mr.​ Jorgensen, a shareholder in the Best​ Corporation, owns 9,000 shares of its common stock. Mr. Jorgensen receives a 4​% stock dividend. After the stock​ dividend, Mr. Jorgensen will have​ a:

total of 9.360 shares of Best corp's common stock

capital stock

total shares of ownership in a corporation

what do closing entries accomplish

transfer revenues, expenses, and dividends to the retained earnings account zero out revenues, expenses, and dividends bring the retained earnings account to its correct ending balance

posting

transferring amounts from the journal to the ledger

Previously issued stock that a corporation purchases from shareholders is​ called:

treasury stock

wholesaler

type of merchandiser that buys goods form manufacturers and then sells them to retailers

overstating ending inventory causes

understates cogs and overstates net income

investment in 25% of the investee companys stock of which the investor has significant influence

use equity

on a post-closing trial balance? accounts payable

yes

on a post-closing trial balance? accumulated depreciation - furniture

yes

on a post-closing trial balance? office supplies

yes

on a post-closing trial balance? retained earnings

yes

on a post-closing trial balance? unearned revenue

yes

Burkert Company has​ 50,000 shares of​ $1 par value common stock issued and outstanding. The company also has 1,000 shares of​ $100 par​ value, 6​% cumulative preferred stock outstanding. Burkert did not pay the preferred dividends in 2016 and 2017. For the common stockholders to receive a dividend in​ 2018, the board of directors must declare dividends in excess​ of:

$18.000

A share of​ 5% preferred stock has a par value of $60 and market value of $80. The owners of the preferred stock will receive a dividend​ of:

$3.00 per share

The Good Word Store reported the following​ figures: Retained​ Earnings, January​ 31, 2017............$37,000,000 Retained​ Earnings, January​ 31, 2018............$17,000,000 Total​ Stockholders' Equity, January​ 31, 2017.............$31,000,000 Total​ Stockholders' Equity, January​ 31, 2018.............$27,000,000 The​ company's fiscal year ends on January 31 each year. Dividends declared for the fiscal year ending January​ 31, 2018 are $16,000,000. What is the net income or net loss for the fiscal year ending January​ 31, 2018?

$4.000.000 net loss

Cubs Corporation issues $500,000, 10%, 5-year bonds on Jan 1, 2014 for $479,000. Interest is paid annually on January 1. If Cubs Corporation uses the straight-line method of amortization of bond discount, the amount of interest expense recorded at December 31, 2014 would be

$54,200

Stockholders' equity section of the balance sheet. YIKES

( {}{}{} denotes a line change) Paid-in capital: {}{}{} a. Preferred stock-$7, no-par value; 100k shares authorized, 700 shares issued and outstanding =30.000{}{}{} b. Common stock-$1 par value; 500k shares authorized, 2.050 shares issued/outstanding=2.050 c. Paid-in capital in excess of par-common=25.450 d. Total Paid-in capital=a+b+c=57.500 e. Retained Earnings=net income=40.000 Total stockholders' equity = d+e = 97.500

Purple Bear Inc took out a $120,000 mortgage payable on 12/31/18 to buy a building. The building was also for the full $120,000. Prepare a 4 month amortization schedule for the mortgage. The first month is provided. The Monthly payment will be $750 and the mortgage has a 5% interest. Also record the 12/31/19 transaction.

(table in emailed study guide) debit building 120.000 credit mortgage payable 120.000

Purple Bear Inc took out a $120,000 mortgage payable on 12/31/18 to buy a building. The building was also for the full $120,000. Prepare a 4 month amortization schedule for the mortgage. The first month is provided. The Monthly payment will be $750 and the mortgage has a 5% interest. Also record the first payment on 1/31/19.

(table in emailed study guide) debit note payable 250 debit interest expense 500 credit cash 750

On December 31 st 2018, Stanford Inc received $15,000 cash in exchange for a 3 year, 5% note payable. Each year, they will pay $5,000 in principal plus interest. Prepare an amortization table for the life of the note. Also record the journal entry for the 12/31/19 1st year payment.

(table in emailed study guide) debit note payable 5.000 debit interest expense 750 credit cash 5750

1. Purchased equipment costing $10,000 by issuing a​ one-year, 6​% note payable 2. accrued interest on the note payable 3. paid the note payable plus interest at maturity

1. debit equipment 10.000 credit notes payable 10.000 2. debit interest expense 350 credit interest payable 350 3. debit note payable 10.000 debit interest expense 250 debit interest payable 350 credit cash 10.600

1. Made sales of $22,000. McGinn estimates that warranty expense is 6% of sales 2. Paid $800 to satisfy warranty claims. 3. Estimated vacation benefits expense to be $3,500. 4. McGinn expected to pay its employees a 2% bonus on net income after deducting the bonus. Net income for the year is $60,000.

1. debit warranty expense 1.320 credit warranty liability 1.320 2. debit warranty liability 800 credit cash 800 3. debit vacation benefits expense 3.500 credit vacation benefits payable 3.500 4.

Element Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $20.00 per share. Common​ Stock, $5.00 ​par, 324,000 shares​ authorized, 160,000 shares issued and outstanding $800,000 Paid−In Capital in Excess of Par—Common 137,000 Retained Earnings 305,000 Total​ Stockholders' Equity $1,242,000. After a 2−for−1 stock​ split, what is the number of issued​ shares?

320.000

Mr.​ Seider, a shareholder in the Greenfield​ Corporation, owns 5,000 shares of their common​ stock, which represents 35​% of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 5​% stock dividend. After the stock​ dividend, what is Mr.​ Seider's ownership in Greenfield​ Corporation's common​ stock?

35% ownership

journalize the declaration of the stock dividend

debit stock dividends credit common stock dividend distributable credit paid-in capital in excess of par-common

Lawson Enterprises estimates that it will have to pay​ $75,000 in warranty repairs next year.

record an expense and a liability based on estimated amounts

ABC Inc has retail sales that are subject to their states sales tax laws. In December of 2019, their only sale was for an item for $15,000 plus 6% state sales tax. The customer paid in cash A) Record the entry on 12/23/2019 for the sale of the item. You may omit the cost of goods entry.

Debit Cash 15900 Credit Sales Revenue 15000 Credit sales tax payable 900

face value (par value)

Sum of money that the corporation promises to pay at the bond's expiration. In most cases it is also the amount that the bondholder gives to the corporation today. Unless otherwise stated, a par value of $1,000 should be assumed.

​A(n) _________ schedule details each loan​ payment's allocation between principal and interest and the beginning and ending loan balances.

amortization

The authority to declare a dividend lies with​ the:

board of directors

What is one advantage of issuing bonds rather than issuing stock for a​ company?

bonds do not affect the ownership percentage of the corporation

A company has 600,000 shares issued and outstanding of​ $1 par common stock. After a​ 2-for-1 stock​ split, which of the following statements is​ FALSE? a. number of shares issued is $1.200.000 b. the par value per share deacreases to $0.50 per share c. the number of shares issued is 300.000 d. the number of shares outstanding is 1.200.000

c. the number of shares issued is 300.000

​Zeman, Inc. declares and distributes a​ 10% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding. If the market value of the common stock is $25​, the journal entry to record the stock dividend would include​ a:

credit paid-in capital in excess of par - common 45.000

At the end of the​ year, a company makes a journal entry to accrue the interest expense on a short−term note payable. As a result of this​ transaction:

current liabilities increase and stockholders' equity decreases

Unearned Revenue: In the month of March, Wampus Cat Inc collected $1800 in cash for services to be provided equally over April, May and June of 2019. Each month they performed a third of the services per the agreement a. Record the March 20 th Payment from the client to Wampus Cat Inc

debit cash 1800 credit unearned revenue 1800

Issued 700 shares of preferred stock for cash of 30.000

debit cash 30.000 credit preferred stock - no par value 30.000

On June 30 th , 2019 ABC Inc issued 5,000 shares of common stock with a par value of $1, for $10 a share. Record the journal entry for the issuance of common stock at a premium

debit cash 50.000 credit common stock - $1 par value 5.000 credit paid-in capital in excess of par - common stock 45.000

Issued 250 shares of common stock to the promoters who organized the​ corporation, receiving cash of ​$7,500.

debit cash 7.500 credit common stock - $1 par value 250 credit paid-in capital in excess of par value-common stock 7.250

journalize the declaration of the cash dividend

debit cash dividends credit dividends payable -common

Declared a cash dividend

debit cash dividends credit dividends payable-preferred

Oxford Inc has 1,000 outstanding shares of 5%, $25 par value preferred stock. The preferred dividend is 5% of the par value and is stated as such on their stock certificate. In 2019, they declared $50,000 in dividends on all of their stock on December 20 th . Oxford had $1,250 dividend in arrears and their preferred stock was cumulative. Record the December 20 th entry for their dividends.

debit cash dividends 50.000 credit dividends payable - common 47.500 credit dividends payable - preferred 2.500 (2018 dividend in arrears of 1.250 plus 2019 dividends of 1.250. Common stock gets the rest)

Belleview Water Sports has 18,000 shares of ​$3 par value common stock outstanding. Belleview distributes a 15​% stock dividend when the market value of its stock is $20 per share. Journalize the distribution of the stock dividend

debit common stock dividend distributable 8.100 credit common stock -$3 par value 8.100

On November 15 th , 2019 UCA Inc declared a cash dividend of $2 per share on 10,000 shares of common stock. It paid out the dividends on December 1 st . Record the December 1st journal entry.

debit dividends payable -common 20.000 credit cash 20.000

journalize the payment of the cash dividend

debit dividends payable-common credit cash

paid dividend

debit dividends payable-preferred credit cash

warranty claims paid in the amount of 6.400

debit estimated warranty payable 6.400 credit cash 6.400

Income Tax: At the end of the year, its determined ABC Inc will owe $5,000 in Federal Income taxes. a. Record the entry on 12/31/19 for the accrued liability for income tax expense

debit income tax expense 5000 credit income tax payable 5000

Income Tax: At the end of the year, its determined ABC Inc will owe $5,000 in Federal Income taxes. b. Record the entry on 3/15/19 for the payment of taxes with cash

debit income tax payable 5000 credit cash 5000

Issued 1.800 shares of common stock in exchange for land with a market value of 20.000

debit land 20.000 credit common stock - $1 par value 1.800 credit paid-in capital in excess of par - common stock 18.200

James is party to a lawsuit for copyright violation of $160,000. James​'s attorney advises that it is probable James will lose this lawsuit. The attorney estimates the loss at $160,000.

debit loss from lawsuit 160.000 credit lawsuit payable 160.000

Highflyer Inc received $9,000 worth of merchandise inventory in exchange for a 6 month note payable at 10% on June 15, 2019. The note payable is to be paid equally over the 6 months, plus interest. a. Record the entry on June 15, 2019 when they received the merchandise inventory in exchange for a note payable

debit merchandise inventory 9000 credit note payable 9000

Highflyer Inc received $9,000 worth of merchandise inventory in exchange for a 6 month note payable at 10% on June 15, 2019. The note payable is to be paid equally over the 6 months, plus interest. b. Record the July 15, 2019 entry for the first note payable payment

debit note payable 1500 debit interest expense 75 credit cash 1575

Dolanski Company declares and distributes a​ 30% common stock dividend when it has​ 50,000 shares of​ $10 par common stock outstanding. The market price per share is​ $30 at the date of declaration. Which journal entry is​ prepared?

debit retained earnings 150.000 credit common stock 150.000

ABC Inc has retail sales that are subject to their states sales tax laws. In December of 2019, their only sale was for an item for $15,000 plus 6% state sales tax. The customer paid in cash B) Record the entry on 1/20/2020 when they paid the sales tax.

debit sales tax payable 900 credit cash 900

Belleview Water Sports has 18,000 shares of ​$3 par value common stock outstanding. Belleview distributes a 15​% stock dividend when the market value of its stock is $20 per share. Journalize the declaration of the stock dividend

debit stock dividends 54.000 credit common stock dividend distributable 8.100 credit paid-in capital in excess of par - common 45.900

Smith Corporation issues $2,100,000, 10-year, 8% bonds payable at a price of 97. The journal entry to record the issuance will include a:

debit to Cash for $2,037,000.

On January 1, 2016, a bond was issued at a discount. The journal entry to record the semiannual interest payment on July 1, 2016 would include a:

debit to Interest Expense, a credit to Discount on Bonds Payable and a credit to Cash.

On December 30 th , ABC Inc decided to buy back 500 shares of previously issued common stock at $12 per share. Record the purchase of treasury stock.

debit treasury stock - common 6.000 credit cash 6.000

ABC Inc made sales on account of $50,000 on June 10 th . The company estimates their warranty cost will be 5% of sales. On June 30 th , they had an actual warranty cost of $750 they paid in cash a. Record the entry on 6/10 to accrue the warranty expense. Ignore the sales and cogs entry

debit warranty expense 2500 credit warranty claim payable 2500

James estimated warranty expense on sales for the second half of the year of $470,000 at 2​%

debit warranty expense 9.400 credit estimated warranty payable 9.400

Gulf Oil Refinery had a gas explosion on one of its oil rigs. Gulf believes it is likely that it will have to pay environmental​ clean-up costs and damages in the future due to the gas explosion. Gulf cannot estimate the amount of the damages.

describe the situation in a note to the financial statements

Journal entry recorded, disclosure recorded, or no action needed: Reasonably Possible Contingent Liability

disclosure is recorded

Weaver, Inc. is being sued by a former employee. Weaver believes that there is a remote chance that the employee will win. The employee is suing Weaver for damages of​ $40,000.

do not disclose

Monthly sales are $490,000. Warranty costs are estimated at 6​% of monthly sales. Warranties are honored with replacement products. No defective products are returned during the month. At the end of the​ month, the company should record a journal entry with a credit​ to:

estimated warranty payable for 29.400

Preferred stockholders

generally have no voting rights, due to their preferred status, which affords them first crack at dividends, before common stockholder are paid

In the first week of 2019, Grace worked 45 hours. She is paid $10 an hour and makes time and a half for any hours worked over 40 in a week. Her Federal income tax withholding is 20%, FICA Social Security tax is 6.2%, FICA Medicare tax is 1.45%, she had $50 of health insurance deducted, and a charitable contribution to United Way or $10. Calculate her gross pay, and show the calculation to arrive at her net(take-home) pay.

gross pay=($10*40)+($15*5)=$475 Income Taxes=$475*.2=$95 Social Security Tax=$475*.062=$29.45 Medicare tax=$475*.0145=$6.89 Health insurance=$50 United Way=$10 Net Pay=$283.66

Declaring and distributing stock​ dividends:

has no effect on total stockholders' equity

A small stock dividend will:

have no effect on total assets or total stockholders' equity

premium bond

high than the market rate of interest

Journal entry recorded, disclosure recorded, or no action needed: Probable Contingent Liability that can be estimated

journal entry is recorded

A(n) ___________ payable is a​ long-term debt that is backed with a security interest in specific property.

mortgage

Journal entry recorded, disclosure recorded, or no action needed: Remote Contingent Liability with no value estimated

no action needed

Journal entry recorded, disclosure recorded, or no action needed: Remote Contingent Liability with value estimated

no action needed

What is the overall effect of the stock dividend on Belleview​'s total​ assets? total stockholders' equity?

no effect on either

James is party to a patent infringement lawsuit of $220,000. James​'s attorney is certain it is remote that James will lose this lawsuit.

no entry required

entry for date of record

nothing

A​ _______ corporation is a corporation whose stock can be purchased on an organized stock exchange.

public

A premium on bonds payable occurs when the issue price of a bond is greater than the face value of the bond.

true