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

Trego 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.How much of the first payment would be principal?

Compare stock splits and stock dividends in terms of effect on stockholders' equity and market price.

All the following except one are true statements about the declaration and distribution of stock dividends.

The interest expense recognized on a noninterest-bearing note is calculated using the:

Which of the following would tend to cause the market price of common stock to decrease?

When a bond premium is being amortized,at maturity

As a premium on notes payable is amortized:

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

In a periodic payment note,the amount borrowed is equal to the:

Bobber Corporation purchased 1,000 shares of its own $1 par value common stock at $10 per share.This was the first time the company had ever purchased treasury stock.Shortly thereafter,Bobber sold 100 shares of this treasury stock at $13 per share.The journal entry to record the sale of the treasury stock would include a:

"Lessees prefer operating leases but lessors prefer capital leases." Is this statement correct? Explain.

The issuance of common stock for cash would appear on the

The amortization of a premium on bonds payable:

On January 2,2010,Cardy Computers purchased machinery by paying $15,000 down and signing a 4-year,10% installment note for the $60,000 balance.The loan agreement called for 8 semiannual payments beginning July 1,2010.Determine the amount of each semiannual payment (round to the nearest dollar)and prepare journal entries for the first two payments,including the accrual at year end.Cardy has a December 31 year end.

Explain how a corporation's income is taxed twice.

The journal entry to record the issuance of nopar common stock could include all of the following except a:

The journal entry to record a payment on an installment note would include all of the following except:

How would the purchase of treasury stock affect the market price of a firm's common stock?

The journal entry to record payments made on a capital lease would include all of the following except?