Acc Test 3

A company whose fiscal year ends December 31, has a weekly payroll of $100,000. Employees work 5 days per week, Monday through Friday and payday is every Friday. How much wages expense will be recorded on the Friday, January 3 payday?

60000

Total stockholders' equity includes $50,000 of common stock with a stated value of $0.50, and 5,000 shares of treasury stock with a total cost of $25,000. How many total shares are outstanding?

95000

When bonds are sold for less than the par amount, this means that the

a. stated rate of interest is less than the yield rate of interest.

The balance in the retained earnings account represents

accumulated earnings that have not been distributed to stockholders.

with the effective interest method of amortization, the amortization of a bond premium results in a(n)

decrease in interest expense.

Which of the following preferred stock features authorizes the corporation to redeem shares at a fixed price on or after a specified date?

the call provision

company plans to use the effective interest method of amortizing bond discounts and premiums. Refer to Kaleidoscope Paint. The interest expense on the bonds at June 30, 2019, is

$24,037.

Lasik Vision, Inc. began business on June 1, 2019. The corporate charter authorized issuance of 1,000 shares of no-par common stock and 4,000 shares of $6 par, 6% cumulative preferred stock. As of the beginning of 2020, 200 shares of common stock had been issued and none of the preferred stock had been issued. If the company issues 400 shares of common stock on March 1, 2020 for $10 per share, the journal entry would include a

$4,000 credit to common stock.

When bonds are issued by a company, the accounting entry shows an

. increase in assets and an increase in liabilities.

f a business has current assets of $62,000, total assets of $350,000, current liabilities of $31,000, and total liabilities of $125,000, then its current ratio will be

2.0

Which of the following statements regarding accounts payable is false?

Accounts payable arise when a business promises to purchase goods or services in the future.

A bond issuing at 101.25 means that the bond

sold for $1,012.50.

landlord records the collection of a tenant's security deposit as a(n)

liability.

utstanding shares represent the

number of shares that are currently held by stockholders.

Selected data from the company's financial statements are presented below: 2020 2019 Net income $ 150,000 $ 120,000 Cash dividends paid on preferred stock 15,000 15,000 Cash dividends paid on common stock 42,000 38,000 Common stock price 15 14 Preferred stock price 31 26 Purchases of treasury stock 100,000 -0- Total stockholders' equity 2,300,000 2,157,000 Common stockholders' equity 1,780,000 1,637,000 Average number of preferred shares outstanding 20,000 20,000 Average number of common shares outstanding 104,000 95,000 Refer to Labor Finders, Inc. The company's 2020 earnings per share is reported as

1.3