Reference no: EM132593037

Question 1: Partnership accounting:

Select one:

a. Is the same as accounting for a corporation.

b. Is the same as accounting for an S corporation.

c. Is the same as accounting for a sole proprietorship, except that separate capital and withdrawal accounts are kept for each partner.

d. Is the same as accounting for a sole proprietorship.

Question 2: On January 1, a company issues bonds dated January 1, 2018 with a par value of $300,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid annually on December 31. The bonds are sold for $312,200. The journal entry to record the first interest payment using straight-line amortization is:

Select one:

a. Debit Interest Payable $27,000; credit Cash $27,000.

b. Debit Interest Expense $24,560; debit Premium on Bonds Payable $2,440; credit Cash $27,000.

c. Debit Interest Expense $27,000; credit Premium on Bonds Payable $2,440; credit Cash $24,560.

d. Debit Interest Expense $24,560; debit Discount on Bonds Payable $2,440; credit Cash $27,000.

Question 3: OMAR Company. reported net income of $53,000; depreciation expenses of $11,000; a gain on a land sale of $3,000; and a decrease in Accounts Receivable of $3,500. Under the indirect method, net Cash Flows from operations is:

Select one:

a. $57,500.

b. $67,500.

c. $64,500.

d. $70,500.

Question 4: If the market interest rate is 6%, a $10,000, 7%, 5-year bond, that pays interest semiannually would sell at an amount:

Select one:

a. less than the maturity value.

b. greater than face value.

c. less than face value.

d. equal to face value.

Question 5: On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $487,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The amount of discount amortized each period is $812.50.

Select one:

a. TRUE

b. FALSE

Question 6: On January 1, $300,000 of par value bonds with a carrying value of $300,000 is converted to 50,000 shares of $5 par value common stock. The entry to record the conversion of the bonds includes all of the following entries except:

Select one:

a. Debit to Bonds Payable $300,000..

b. Credit to Paid-In Capital in Excess of Par Value, Common Stock $50,000.

c. Credit to Common Stock $250,000.

d. Credit to Bonds Payable $300,000.