Comp_exam_c - COMPREHENSIVE EXAMINATION C(Chapters 9 11 Problem C-I C II C III C IV C-V Topic Multiple Choice Ratios Corporation Entries Bonds

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
COMPREHENSIVE EXAMINATION C (Chapters 9 - 11) Approximate Problem Topic Points Minutes C - I Multiple Choice . .......................................... 20 20 C - II Ratios . ........................................................ 16 15 C - III Corporation Entries . .................................... 28 20 C - IV Bonds Payable. ............................................ 20 15 C - V Plant Asset Disposal Entries . ...................... _16 15 100 85 Checking Work . .......................................... 5 90
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Test Bank for Financial of Accounting: Tools for Business Decision Making, Fourth Edition C-2 Problem C - I — Multiple Choice (20 points) Circle the one best answer. 1. The amortization of premium on bonds payable a. will increase bond interest expense. b. should take place over a period not to exceed 40 years. c. will decrease bond interest expense. d. will increase bond interest revenue. 2. Which one of the following would not be considered an advantage of the corporate form of organization? a. Limited liability of stockholders b. Separate legal existence c. Continuous life d. Government regulation 3. A $200,000, 5%, 20-year bond was issued at 97. The proceeds received from the bond issuance are a. $194,000. b. $190,400. c. $200,000. d. $206,000. 4. Retained earnings is affected by each of the following except a a. cash dividend. b. large stock dividend. c. small stock dividend. d. stock split. 5. The Ewing Company purchases 1,000 shares of its common stock for $20,000. The $20,000 amount should be debited to a. an asset account. b. Treasury Stock. c. Common Stock. d. Retained Earnings. 6. The X Company has the following stock outstanding: 6% Preferred stock, $100 par value, cumulative $400,000 Common stock, $50 par value $600,000 Preferred stock dividends are in arrears for 2005 and 2004. If the company declares and pays $75,000 in dividends in 2006, the amount received by the preferred stockholders would be a. $24,000. b. $48,000. c. $72,000. d. $75,000.
Background image of page 2
Comprehensive Examination C C-3 7. On July 1, 2007, Tow Enterprises sold equipment with an original cost of $95,000 for $50,000. The equipment was purchased January 1, 2006, and was depreciated using the straight-line method assuming a five year useful life and $5,000 salvage value. The necessary entries for 2007 include a a. debit to Accumulated Depreciation—Equipment for $18,000. b. credit to Gain on Sale of Equipment for $18,000. c. credit to Cash for $50,000. d. debit to Depreciation Expense for $9,000. 8. The Anne Company has total cash register receipts of $7,140. This total includes a 5% sales tax. The entry to record the receipts will include a a. debit to Sales Tax Expense for $340. b. credit to Sales for $7,140.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/05/2009 for the course ACCT 2102 taught by Professor Constable,d during the Fall '08 term at Georgia Perimeter.

Page1 / 11

Comp_exam_c - COMPREHENSIVE EXAMINATION C(Chapters 9 11 Problem C-I C II C III C IV C-V Topic Multiple Choice Ratios Corporation Entries Bonds

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online