Blog

Bernie Company purchased equipment and signed a 7 year installment loan at 9% annual interest. The annual payments equal $9,000. The amount of the loan is:

Harbor Company has $110,000 of 9% cumulative, preferred stock outstanding. Harbor also has $510,000 of common stock outstanding. In the company’s first year of operation, $3,600 cash dividends were paid. During the second year, the company paid cash dividends of $31,000. In the second year, the dividend should be distributed as follows:

When preparing a statement of cash flows using the indirect method, which of the following is correct?

The following data has been collected about Howard Company’s stockholders’ equity accounts: Common stock $10 par value 20,000 shares authorized, 10,000 shares issued, and 9,000 shares outstanding $ 100,000 Paid-in capital in excess of par value, common stock      50,000 Retained earnings      25,000 Treasury stock      11,500 How much did Howard Company pay per share for its Treasury Stock?

When a company provides additional shares to stockholders according to their percent ownership, it is known as a(n):

Ursula company issues 9%, 20-year bonds with a par value of $750,000 when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual cash interest payment is:

Minelli’s Market bought $11,300 worth of merchandise from Food Suppliers and signed a 120-day, 6% promissory note for the $11,300. Food Supplier’s journal entry to record the sales transaction is:

On September 1, Cottage Grove, a newly formed company, had the following stock issued and outstanding: Common stock, $1 par value, 15,000 shares originally issued for $18 per share Preferred stock, $15 par value, 3,000 shares originally issued for $45 per share Cottage Grove’s September 1 statement of equity should report

Nalepa Inc. purchased equipment for $23,500 on April 1, 2022. The equipment will be depreciated using the straight-line method over its four-year useful life. Assuming the equipment’s salvage value is $2,300, what will be the amount of accumulated depreciation on the equipment on December 31, 2024?  

Calabrese Company reported the following purchases and sales of its only product. Calabrese uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.   Date Activities Units Acquired at Cost Units Sold at Retail May 1 Beginning Inventory 180 units @ $13   May 5 Purchase 235 units @ $15   May 10 Sales   155 units @ $23 May 15 Purchase 115 units @ $16   May 24 Sales   105 units @ $24