Reference no: EM133057779

1. List the three requirements defining Liabilities:

2. On July 1, 20X4, Working Dog, Inc., borrowed $20,000 on a four-year, 6% note payable. At December 31, 20X4, a journal entry should be made to record:

3. The employee is responsible for which payroll taxes?

4. Alpine Corporation sells $50,000 of goods, and you collect sales tax of 7%. What is the journal entry to record the transaction?

5. Technology Corporation has a lawsuit pending from a customer claiming damages of $128,000. Technology Corporation's attorney advises that the likelihood the customer will win is reasonably possible. How is this contingent liability reported?

6. Cooper Company owed Estimated Warranty Payable of $2,200 at the end of 20X4. During 20X5, Cooper Company made sales of $280,000 and expects product warranties to cost the company 3% of the sales. During 20X5, Cooper Company paid $5,000 for warranties. What is Cooper Company's estimated warranty payable at the end of 20X5?

7. At December 31, Haute Hardware owes employees for four days of the five-day workweek. The total payroll for the week is $51,000. What journal entry should you make at December 31?

8. Yolanda's Yoga Studio has Unearned Revenue of $15,000, Salaries Payable of $28,000, and Allowance for Uncollectible Accounts of $4,200. What amount would Yolanda's Yoga Studio report as total current liabilities?

9. A five-year, $100,000, 4% note payable was issued on December 31, 20X4. The note requires principal payments of $20,000 plus interest due each year beginning December 31, 20X5. The entry to record the annual payment at the end of year two on December 31, 20X6,:

10. Bon Voyage Company's trial balance shows $800,000 face value of bonds with a discount balance of $12,000. The bonds mature in 20 years. How will the bonds be presented on the balance sheet?

11. Rivers and Streams Corporation issued $400,000 of 8% serial bonds at face value on December 31, 2018. Half of the bonds mature January 1, 2021, while the other half of the bonds mature January 1, 2029. On December 31, 2020, the balance sheet will show which of Bonds Payable?

12. Nolan Corporation has total assets of $500,000. Current liabilities are $10,000, and long-term liabilities are $90,000. What is the debt to equity ratio?

13. A $400,000 bond priced at 102 can be bought or issued for:

14. Cooper Corporation issued its 4%, 20-year bonds payable at a price of $288,500 (face value is $300,000). The company uses the straight-line amortization method for the bonds. Interest expense for each year is:

15. Skinny Smoothies has $850,000 of 20-year bonds payable outstanding. These bonds had a discount of $42,000 at issuance, which was 8 years ago. The company uses the straight-line amortization method. The carrying amount of these bonds payable today is:

16. What is the correct journal entry to record the issuance of a $250,000 face value bond at 95?

17. Hughes Industries signed a 20-year note payable on January 1, 2018. The note requires annual principal payments plus interest. The entry to record the annual payment on December 31, 2018 includes a _______ to Interest Expense

18. Yes or No, Is Mutual Agency a characteristic of Corporations?

19. What is the effect of the purchase of treasury stock on the number of shares issued?

20. Backyard Emporium issued 500,000 shares of $1 par common stock at $5 per share. What journal entry correctly records the issuance of this stock?

21. Two years ago, Tonya Williams purchased a building for $210,000. This year, Williams gave the building, which now has a current market value of $240,000, to Beyond Corporation in exchange for 5,000 shares of $10-par common stock. What journal entry by Beyond Corporation correctly records the issuance of this stock?

22. Good For You Foods has outstanding 6,000 shares of $3 par common stock, which was issued at $15 per share, and 2,000 shares of $10 par cumulative preferred stock, which was issued at par. Good For You Foods also has a deficit balance in Retained Earnings of $26,000. How much is Good For You Foods' total stockholders' equity?

23. Happy Pets Corporation has 10,000 shares of 5%, $20 par noncumulative preferred stock, and 37,000 shares of common stock outstanding. Ink declared no dividends in 20X4. In 20X5, Ink declares a total dividend of $54,000. How much of the dividends go to the common stockholders?

24. True or False, Stock Splits increase the number of shares of stock issued while decreasing par value per share.

25. Retained Earnings can be subject to appropriation by whom?