Accounting Part 2 Accounting questions I got wrong that I would like to know what the right answer is for study purposes since my school don’t give me the right answers so i can study the right materials. Question 1 of 20 0.0/ 5.0 Points Dolly’s Best iss

Accounting Part 2

Accounting questions I got wrong that I would like to know what the right answer is for study purposes  since my school don’t give me the right answers so i can study the right materials.

Question 1 of 20

0.0/ 5.0 Points

Dolly’s Best issued 200 shares of its $10 common stock in exchange for used packaging equipment with a fair market value of $2,400. The entry to record the acquisition of the equipment would include a

A. debit to Equipment for $2,000.

B. debit to Paid-In Capital in Excess of Par for $400.*******

C. credit to Common Stock for $2,400.

D. debit to Equipment for $2,400.

Question 2 of 20

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Soy.com has 100 shares of $100, 6% cumulative nonparticipating preferred stock, and 1,000 shares of $10 par value common stock outstanding. The company paid $2,000 cash dividends, including one-year dividends in arrears to preferred stockholders. Preferred stockholders received

A. $1,200.

B. $2,000.*******

C. $182.

D. $600.

Question 4 of 20

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The articles of incorporation are submitted by the incorporators to the _______ for approval.

A. IRS

B. Office of the Secretary of State

C. Securities and Exchange Commission

D. governor of the state******

Question 5 of 20

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Stockholders’ investment appears in

A. Paid-In Capital.

B. Owner’s Equity.*******

C. Retained Earnings.

D. Cash.

Question 9 of 20

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If preferred dividends are limited to the stated rate of dividend, the preferred stock is

A. noncumulative.

B. cumulative.

C. participating.*******

D. nonparticipating.

Question 11 of 20

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Rhubarb Corporation’s outstanding stock is 100 shares of $100, 11% cumulative nonparticipating preferred stock, and 2,000 shares of $12 par value common stock. Rhubarb paid $1,600 cash dividends during the year. Common stockholders received

A. $0.

B. $500.

C. $2,500.

D. $1,100.*******

Question 12 of 20

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When stock is exchanged for noncash assets,

A. debit the asset for prior book value and credit Common Stock for cash received.*******

B. debit assets for market value and credit Common Stock for par value; if needed, credit Paid-In Capital in Excess of Par.

C. debit assets for market value and credit Common Stock for market value.

D. debit assets for par value and credit Common Stock for par value.

Question 15 of 20

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The ownership of a corporation consists of the

A. governing body.

B. officers of the corporation.******

C. stockholders.

D. board of directors.

Question 16 of 20

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Dividends in arrears occur when the company doesn’t pay dividends to

A. cumulative preferred stockholders.

B. noncumulative preferred stockholders.******

C. participating preferred stockholders.

D. nonparticipating common stockholders.

Question 19 of 20

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The Logan Company issued 140 shares of its $12 par value stock for $14 per share. The entry to record the receipt of cash and issuance of the stock would include a

A. debit to Cash for $1,680 and a credit to Common Stock for $1,680.

B. debit to Cash for $1,960.

C. credit to Common Stock for $1,960.

D. debit to Discount on Common Stock for $280.*******

Question 1 of 20

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If a bond is issued at a premium, the effective interest rate is most likely _______ the contract interest rate.

A. higher than******

B. lower than

C. the same as

D. Answer can’t be determined based on information given.

Question 2 of 20

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The statement of cash flows provides information about all of the following except _______ activities.

A. organizing

B. investing

C. operating******

D. financing

Question 3 of 20

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Transactions involving the purchase and sale of fixed assets would be considered _______ activities.

A. buying and selling******

B. financing

C. operating

D. investing

Question 4 of 20

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If bonds are sold between interest payment dates, the amount of cash the issuer receives is

A. more than the market value of the bonds.

B. less than the market value of the bonds.****

C. equal to the market value of the bonds.

D. equal to the face value of the bonds.

Question 8 of 20

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On April 1, Braintree Corporation issued 10%, ten-year, $300,000 bonds at 106. The effective interest rate for these bonds is

A. 10%.******

B. 9.43%.

C. 4.7%.

D. 5%.

Question 9 of 20

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When a bond issued at face value is retired, what is the journal entry?

A. Debit Bond Interest Expense; credit Cash

B. Debit Bonds Payable; credit Cash

C. Debit Cash; credit Bonds Payable******

D. Debit Cash; credit Bond Interest Expense

Question 17 of 20

0.0/ 5.0 Points

When using the indirect method, which of the following would be included in the net cash flows from operating activities section of a cash flow statement?

A. Sales of plant, property and equipment*******

B. Making loans and paying out interest

C. Payment of interest and expenses

D. Issuing bonds and notes

Question 20 of 20

0.0/ 5.0 Points

Assume the following account balances immediately after an interest payment date:

Bonds Payable

$100,000

Premium on Bonds Payable

5,000

If the bonds are retired immediately at a total cost of $104,000, what is the journal entry to record this event? 

A.*********

Cash

104,000

Loss on Bond Retirement

1,000

     Premium on Bonds Payable

     5,000

     Bonds Payable

     100,000

B.

Bonds Payable

100,000

Premium on Bonds Payable

5,000

     Cash

     104,000

     Gain on Bond Retirement

     1,000

C.

Bonds Payable

100,000

Loss on Bond Retirement

9,000

     Premium on Bonds Payable

     5,000

     Cash

     104,000

D. None of the above