Accountancy Study Guide
13. The interest on a $4,000, 6%, 60-day note receivable is $40.
14. The maturity value of a $2,000, 6%, 60-day note receivable dated February 10th is $2,020
15. A disadvantage of the corporate form of business is government regulation..
16. James Corporation issued 2,000 shares of $5 par value common stock for $20 per share. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par for $30,000.
17. The purchase of treasury stock decreases total assets and decreases total stockholders' equity.
18. The ability of a corporation to obtain capital is enhanced because of limited liability and ease of share transferability.
19. Par value is the value assigned per share in the corporate charter
20. The Paid-in Capital in Excess of Par Value is increased in the accounting records when capital stock is issued at an amount greater than par value.
21. Dividends in arrears are dividends on cumulative preferred stock that have not been declared for a given period of time.
22. Ross Paints reported sales of $350,000, total assets of $150,000, total stock-holders' equity of $60,000, current assets of $50,000, current liabilities of $30,000, and cash of $15,000. In a vertical analysis of the balance sheet, cash would be shown as 10%
23. Richer Company paid $21,000 to buy 4,000 shares of its $6 par value common stock for the treasury. The stock was originally sold for $25,000. The entry to record the purchase includes a debit to Treasury Stock for $21,000.
24. Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections: Total Assets Total Liabilities Total Stockholders’ Equity No change Increase Decrease 1. The payment of a liability decreases assets and liabilities.
2. A payment of a portion of accounts payable
14. The maturity value of a $2,000, 6%, 60-day note receivable dated February 10th is $2,020
15. A disadvantage of the corporate form of business is government regulation..
16. James Corporation issued 2,000 shares of $5 par value common stock for $20 per share. The entry to record this transaction includes a credit to Paid-in Capital in Excess of Par for $30,000.
17. The purchase of treasury stock decreases total assets and decreases total stockholders' equity.
18. The ability of a corporation to obtain capital is enhanced because of limited liability and ease of share transferability.
19. Par value is the value assigned per share in the corporate charter
20. The Paid-in Capital in Excess of Par Value is increased in the accounting records when capital stock is issued at an amount greater than par value.
21. Dividends in arrears are dividends on cumulative preferred stock that have not been declared for a given period of time.
22. Ross Paints reported sales of $350,000, total assets of $150,000, total stock-holders' equity of $60,000, current assets of $50,000, current liabilities of $30,000, and cash of $15,000. In a vertical analysis of the balance sheet, cash would be shown as 10%
23. Richer Company paid $21,000 to buy 4,000 shares of its $6 par value common stock for the treasury. The stock was originally sold for $25,000. The entry to record the purchase includes a debit to Treasury Stock for $21,000.
24. Indicate the respective effects of the declaration of a cash dividend on the following balance sheet sections: Total Assets Total Liabilities Total Stockholders’ Equity No change Increase Decrease 1. The payment of a liability decreases assets and liabilities.
2. A payment of a portion of accounts payable