act review 4

act review 4 - Question 1 1 points American Co sold...

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Question 1 1 points Save American Co. sold $100,000 of bonds for an issue price of 98. As a result of selling these bonds, its a. total assets increase by $98,000 and its total liabilities increase by $98,000 b. total assets increase by $100,000 and its total liabilities increase by $98,000 c. total assets increase by $98,000 and its total liabilities increase by $100,000 d. total assets increase by $100,000 and its total liabilities increase by $100,000 S Corp. has one million shares outstanding with a par value of $5. On August 24 of this year, it issued a 10% stock dividend when its stock price was $25. As a result of this stock dividend, retained earnings is a. decreased by $2,500,000 b. decreased by $500,000 c. increased by $2,500,000 d. increased by $500,000 4. What is Bright Company’s fixed asset ratio? a. .10 times b. 3 times c. 3.27 times
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d. 10 times 5. What is the times interest earned ratio? a. 8 b. 6 c. 5 d. 7 Question 7 1 points Save The Wildcat Co. issued $200,000 of bonds at their face value on August 1, 2xx1. They pay interest of 8% on January 31 and July 31. As of December 31, 2xx1, it needs to make a journal entry a. debiting interest expense for $8,000 and crediting interest payable $8,000 b. debiting interest expense for $6,667 and crediting interest payable $6,667 c. debiting interest expense for $6,667 and crediting cash $6,667 d. debiting interest expense for $8,000 and crediting cash $8,000 Clem Co. sold an asset for $8,500 in cash. The asset had a cost of $30,000 and $20,000 in accumulated depreciation had been booked as of the day it was sold. What is the gain/loss on the sale ? a. $10,000
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Loss b. $1,500 Loss c. $22,500 Gain d. $3,000 Gain ABC Co. purchased a parcel of land for $300,000. It paid attorney fees of $2,000 to verify title to the land. In addition, it paid a brokers fee of $5,000 to help find a suitable parcel of land. This parcel of land should be recorded in the accounting records for a. $300,00 0 b. $305,00 0 c. $307,00 0 d. $302,00 0 10. ABC Corp. issues 1,000 shares of its $10
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act review 4 - Question 1 1 points American Co sold...

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