Exam 15: Recording and Evaluating Capital Resource Process Activities: Financing

The journal entry recorded by a company when it signs a noninterest-bearing note in exchange for a tract of land would include a:

Reissuing treasury stock at a price higher than the price paid to acquire the stock results in a(n):

The journal entry to record the declaration of a cash dividend would include a:

The journal entry to record the interest expense of a bond payable issued at a premium would include a:

Retained earnings represent

The entry to record the declaration and the entry to record the payment of a cash dividend would include all the following except:

The amortization of a premium on bonds payable:

Hunter Corporation beginning of year retained earnings balance was $28,300.The corporation declared and paid dividends of $19,400 during the year and ended the year with a $36,500 balance.The net income or loss for the year was:

PAC Corporation has 500,000 shares of $5 par value common stock authorized,and 300,000 shares issued and outstanding.The market value of the stock is $14 per share.The journal entry to record the declaration of a 15% stock dividend would include a:

Wagner Products,Inc.,issued $100,000 of bonds on October 1,2010.Given the following partial bond amortization table for these bonds,prepare the necessary journal entry to call in the entire bond issue on 4/1/13 at a call price of 109.

When the face rate of interest is lower than the market rate of interest on the date bonds are issued:

As the Premium on Notes Payable account is reduced:

If a firm buys its own stock,how would the stock be reported on the balance sheet? Why is it reported that way?

Lester Corporation purchased equipment with a fair value of $150,000 on a 6 percent note.The note requires four end-of-year payments of $43,290.What would be the carrying value of the note immediately after the first payment.

The amortization of a discount on bonds payable:

The amortization of a premium on bonds payable:

Bonds are issued at a premium when the:

When the market rate of interest on the date bonds are issued is lower than the face rate of interest on the bonds:

Which of the following is true about a capital lease?

Magnum Industries issued $100,000 of bonds on October 1,2010.Given the following partial bond amortization table for the bonds,prepare all necessary journal entries to record the issuance of the bond and the first year of the bond's life assuming Magnum has a December 31 year-end.Show how the bonds would appear on Magnum's 2010 income statement,balance sheet and statement of cash flows for Magnum Industries.