Bleeker Company issued 10,000 shares of its $5 par value common stock having a market value of $25 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock?;a. $50,000;b. $218,182;c. $250,000;d. $255,000;Adler Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2008, the first year of the corporation's existence;Sold 5,000 shares of common stock for $18 per share.;Issued 5,000 shares of common stock in exchange for a patent valued at $100,000.;At the end of the Adler's first year, total paid-in capital amounted to;a. $40,000.;b. $90,000.;c. $100,000.;d. $190,000.;On September 1, 2008, Zelner Company reacquired 12,000 shares of its $10 par value common stock for $15 per share. Zelner uses the cost method to account for treasury stock. The journal entry to record the reacquisition of the stock should debit;a. Treasury Stock for $120,000.;b. Common Stock for $120,000.;c. Common Stock for $120,000 and Paid-in Capital in Excess of Par for $60,000.;d. Treasury Stock for $180,000.;Gannon Company acquired 6,000 shares of its own common stock at $20 per share on February 5, 2006, and sold 3,000 of these shares at $27 per share on August 9, 2007. The market value of Gannon's common stock was $24 per share at December 31, 2006, and $25 per share at December 31, 2007. The cost method is used to record treasury stock transactions. What account(s) should Gannon credit in 2007 to record the sale of 3,000 shares?;a. Treasury Stock for $81,000.;b. Treasury Stock for $60,000 and Paid-in Capital from Treasury Stock for $21,000.;c. Treasury Stock for $60,000 and Retained Earnings for $21,000.;d. Treasury Stock for $72,000 and Retained Earnings for $9,000;King Co. issued 100,000 shares of $10 par common stock for $1,200,000. King acquired 8,000 shares of its own common stock at $15 per share. Three months later King sold 4,000 of these shares at $19 per share. If the cost method is used to record treasury stock transactions, to record the sale of the 4,000 treasury shares, King should credit;a. Treasury Stock for $76,000.;b. Treasury Stock for $40,000 and Paid-in Capital from Treasury Stock for $36,000.;c. Treasury Stock for $60,000 and Paid-in Capital from Treasury Stock for $16,000.;d. Treasury Stock for $60,000 and Paid-in Capital in Excess of Par for $16,000.;Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockholders' equity are;a. held-to-maturity debt securities.;b. trading debt securities.;c. available-for-sale debt securities.;d. never-sell debt securities.;A requirement for a security to be classified as held-to-maturity is;a. ability to hold the security to maturity.;b. positive intent.;c. the security must be a debt security.;d. All of these are required.;Which of the following is not an accurate representation concerning revenue recognition?;a. Revenue from selling products is recognized at the date of sale, usually interpreted to mean the date of delivery to customers.;b. Revenue from services rendered is recognized when cash is received or when services have been performed.;c. Revenue from permitting others to use enterprise assets is recognized as time passes or as the assets are used.;d. Revenue from disposing of assets other than products is recognized at the date of sale.;The process of formally recording or incorporating an item in the financial statements of an entity is;a. allocation.;b. articulation.;c. realization.;d. recognition.;A sale should not be recognized as revenue by the seller at the time of sale if;a. payment was made by check.;b. the selling price is less than the normal selling price.;c. the buyer has a right to return the product and the amount of future returns cannot be reasonably estimated.;d. none of these.;Which of the following is not a characteristic of a defined-contribution pension plan?;a. The employer's contribution each period is based on a formula.;b. The benefits to be received by employees are defined by the terms of the plan.;c. The accounting for a defined-contribution plan is straightforward and uncomplicated.;d. The benefit of gain or the risk of loss from the assets contributed to the pension fund are borne by the employee.;In accounting for a defined-benefit pension plan;a. an appropriate funding pattern must be established to ensure that enough monies will be available at retirement to meet the benefits promised.;b. the employer's responsibility is simply to make a contribution each year based on the formula established in the plan.;c. the expense recognized each period is equal to the cash contribution.;d. the liability is determined based upon known variables that reflect future salary levels promised to employees.
Paper#26255 | Written in 18-Jul-2015Price : $42