Chapter 8 MC

If a corporation issues only one class of stock, it is called:

COMMON STOCK

The total earnings of an employee during payroll period, including bonuses and overtime pay, is referred to as:

GROSS PAY

When are contingent liabilities required to be recorded?

a. When the liability is probable b. When the amount is reasonably estimable C. WHEN THE LIABILITY IS PROBABLE AND REASONABLY ESTIMABLE d. When the liability becomes legally enforceable

When the contract rate of interest on bonds is less than the market rate of interest, the bonds sell at:

a. their maturity value b. their face value C. A DISCOUNT d. a premium

If. $1,000,000 of 8% bonds are issued at 102, the amount of cash received from the sale is:

$1,020,000

An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: 46 hours worked, $350 Federal Income tax withheld, 6% Social Security tax rate, and 1.5% Medicare. What is GROSS PAY?

$1,323

An employee receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as a follows: 46 hours worked, $300 Federal Income tax, 6% social security tax, and 1.5% Medicare tax. What is the net pay for the employee?

$1059.75

Based on the following info, what is earnings per share? Common shares outstanding: 115,00 Preferred stock dividend declared and paid: $40,000 Net income: $350,000

$2.70

On June 5, Glover Co. issued a $60,000, 6%, 120-day note payable to Jones Co. How much will Glover Co. have to pay at maturity?

$61,200

An employee receives an hourly rate of $27, with time and a half for all hours worked in excess of 40 during a week. Payroll data for the current week are as follows: 46 hours worked, $350 Federal Income tax withheld, 6% social security tax, and 1.5% Medicare tax rate. What is the NET PAY for the employee?

$873.77

if $1,000,000 of 10% bonds are issued at 98, the amount of cash received from the sale is:

$980,000

When the contract rate of interest on bonds is higher than the market rate of interest, the bonds sell at:

A. A PREMIUM b. their maturity value c. their face value d. a discount

Which of the following accounts is reported in the noncurrent liabilities section of the corporate balance sheet?

A. BONDS PAYABLE b. dividends payable c. cash d. common stock

What are current liabilities?

A. LIABILITIES THAT ARE DUE AND TO BE PAID OUT OF CURRENT ASSETS WITHIN ONE YEAR. b. Liabilities that are payable if a possible subsequent event occurs. c. Liabilities that are due and payable within two years. d. Liabilities that are due but not payable for more than one year

Where is interest expense listed on the income statement?

A. OTHER EXPENSE SECTION b. Cost of merchandise c. Interest expense is listed on the balance sheet, not the income statement d. Operating expenses

A current liability is a debt that reasonably expected to be paid:

A. WITHIN ONE YEAR b. out of currently recognized revenues c. out of cash currently on hand d. between 6 months and 18 months

Gross earnings for a payroll period less deductions are referred to as:

NET PAY

Which of the following will be classified as a current liability?

a. Bonds payable b. Mortgage Loan C. UNEARNED RENT d. Two-year notes payable

The major subdivisions of the Stockholder's Equity section of the balance sheet are:

a. common stock and retained earnings b. common stock and preferred stock c. stock, paid-in capital, and retained earnings D. PAID-IN CAPITAL AND RETAINED EARNINGS

The cost of a product warranty should be included as an expense in the:

a. future period when the cost of repairing the product is paid b. period the cash is collected for a product sold on account c. future period when the product is repaired or replaced D. PERIOD OF THE SALE OF THE PRODUCT

Stockholder's equity:

a. includes paid-in capital and total liabilities b. is shown on the income statement C. INCLUDES RETAINED EARNINGS AND PAID-IN CAPITAL d. is usually equal to cash on hand

Most employers are levied a tax on payrolls for:

a. union fees b. medical insurance premiums C. FEDERAL UNEMPLOYMENT COMPENSATION TAX d. sales tax