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31 Cards in this Set
- Front
- Back
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A current liability is a debt that can reasonably be expected to be paid... |
within one year. |
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A note payable is in the form of... |
a written promissory note. |
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Admire County Bank agrees to lend Givens Brick Company $300,000 on January 1. Givens Brick Company signs a $300,000, 8%, 9-month note. Then entry made by Givens Brick Company on January 1 to record the proceeds and issuance of the note is... |
Cash 300,000 Notes Payable 300,000 |
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Admire County Bank agrees to lend Givens Brick Company $300,000 on January 1. Givens Brick Company signs a $300,000, 8%, 9-month note. What is the adjusting entry required if Givens Brick Company prepares financial statements of June 30? |
Interest Expense 12,000 Interest Payable 12,000 |
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Admire County Bank agrees to lend Givens Brick Company $300,000 on January 1. Givens Brick Company signs a $300,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
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Notes Payable 300,000 Interest Payable 18,000 Cash 318,000 |
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The interest charged on a $100,000 note payable, at the rate of 8%, on a 90-day note would be.... |
$2,000
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Sales taxes collected by a relater are reported as....
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current liabilities. |
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The current portion of long-term debt should... |
be reclassified as a current liability. |
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Advances from customers are classified as a(n)... |
current liability.
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Herman Company received proceeds of $188,500 on a 10-year, 8% bonds issued on January 1, 2001. The bonds had a face value value $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Herman uses the straight-line method of amortization. What is the amount of interest Herman must pay the bondholders in 2011?
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$16,000 (principle x annual interest rate x partial year) |
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The dominant form of business organization in the United States in terms of dollar sales volume, earnings, and employees is... |
the corporation.
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Which one of the following would NOT be considered an advantage of the corporate form of organization?
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Government regulation |
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Stockholders of a corporation directly elect... |
the board of directors. |
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Which of the following is NOT true of a corporation? |
The acts of its owners bind the corporation. |
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The chief accounting officer in a corporation is the.... |
controller. |
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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. |
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If Vickers Company issues 4,000 shares of $5 par value common stock for $140,000... |
Paid-in Capital in Excess of Par Value will be credited for $120,000. |
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The acquisition of treasury by a corporation... |
decreases its total assets and total stockholders' equity. |
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A corporation purchases 20,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders' equity? |
Decrease by $500,000. |
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The following data is available for BOX Corporation at December 31, 2011: Common Stock, par $10 (authorized 15,000 shares) - $100,000 Treasury Stock (at cost $15 per share) - $600 Based on the data, how many shares of common stock have been issued? |
10,000 |
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A reason some companies purchase investments is because they generate a significant portion of their earnings from investment income. |
True |
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Debt investments are investments in government and corporation bonds. |
True |
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In accordance with the cost principle, brokerage fees should be added to the cost of an investment. |
True |
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Corporations invest excess cash for short periods of time in each of the following except... |
equity securities. |
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On January 1, 2011 Milton Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Milton Company has a calendar year end. The entry for the receipt of interest on July 1, 2011 is... |
Cash 30 Interest Revenue 30 |
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On January 1, 2011 Milton Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Milton Company has a calendar year end. The adjusting entry on December 31, 2011 is...
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Interest Revenue 60 Interest Revenue 60 |
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On January 1, 2011 Milton Company purchased at face value, a $1,000, 6% bond that pays interest on January 1 and July 1. Milton Company has a calendar year end. The entry for the receipt of interest on January 1, 2012 is...
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Cash 30 Interest Receivable 30 |
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On January 1, 2011 Barone Company purchased as a short-term investment, a $1,000, 8% bond for $1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,100 plus accrued interest has not been accrued since the last interest payment date. What is the entry to record the cash proceeds at the time the bind is sold?
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Cash 1,120 Debt investments 1,050 Gain on Sale of Debt Investments 50 Interest Revenue 20 |
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Nagen Company had these transactions pertaining to stock investments: Feb 1. Purchased 3,000 shares of Horton Company (10%) for $49,800 cash plus brokerage fees of $1,200. The entry to record the purchase of the Horton stock would include... |
a debit to Stock Investments for $1,000. |
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Nagen Company had these transactions pertaining to stock investments:
June 1. Received cash dividends fir $2 per share on Horton stock. The entry to record the receipt of the dividends June 1 would include... |
credit to Dividend Revenue for $6,000. |
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Nagen Company had these transactions pertaining to stock investments:
Oct. 1 Sold 1,200 shares of Horton stock for $24,000 less brokerage fees of $600. The entry to record the sale of the stock would include a... |
credit to Gain on Sale of Stock Investments for $3,000. |
