Question: In the stockholders' equity section of the balance sheet, the classification of capital stock consists of
A. Additional paid-in capital and common stock
B. Common stock and treasury stock
C. Common stock, preferred stock, and treasury stock
D. Common stock and preferred stock
Question: Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a
A. Credit to Paid-in Capital from Treasury Stock for $9,000
B. Credit to Retained Earnings for $9,000
C. Debit to Paid-in Capital from Treasury Stock for $45,000
D. Debit to Retained Earnings for $45,000
Question: The financial statements of Gentry Manufacturing Company report net sales of $400,000 and accounts receivable of $80,000 and $40,000 at the beginning and end of the year, respectively. What is the receivables turnover ratio for Gentry?
A. 6.7 times
B. 10 times
C. 5 times
D. 8 times
Question: Martin's Mail Service purchased equipment for $2,500. Martin paid $500 in cash and signed a note for the balance. Martin debited (increased) the Equipment account, credited (decreased) the Cash account and
A. nothing further must be done.
B. debited (increased) the Martin, Capital account for $2,000.
C. credited (reduced) some other asset account for $2,000.
D. credited (increased) a liability account for $2,000.
Corporation declared and paid its first dividend. What dividends are the preferred stockholders entitled to receive in the current year before any distribution is made to common stockholders?
Question: The balance in the Prepaid Rent account before adjustment at the end of the year is $15,000, which represents three months' rent paid on December1. The adjusting entry required on December 31 is to
A. debit (increase) Rent Expense, $5,000; credit (decrease) Prepaid Rent, $5,000.
B. debit (increase) Rent Expense, $10,000; credit (decrease) Prepaid Rent, $10,000.
C. debit (increase) Prepaid Rent, $5,000; credit (decrease) Rent Expense, $5,000.
D. debit (increase) Prepaid Rent, $10,000; credit (decrease) Rent Expense, $10,000.
December 31, 2011. There were no dividends declared in 2009. The board of directors declares and pays a $45,000 dividend in 2010 and in 2011. What is the amount of dividends received by the common stockholders in 2011?
Question: Omega Company pays its employees twice a month, on the 7th and the 21st. On June 21, Omega Company paid employee salaries of $4,000. This transaction would
A. Increase owner’s equity by $4,000
B. Decrease the balance in Salaries Expense by $4,000
C. Decrease net income for the month by $4,000
D. Be recorded by a $4,000 debit to Salaries Payable and a $4,000 credit to Salaries Expense
Question: Notes payable is
A. A liability reported on the Income Statement.
B. A liability reported on the Balance Sheet.
C. Reported only when paid.
D. An expense reported on the Income Statement.
Question: A plant asset cost $45,000 when it was purchased on January 1, 2003. It was depreciated by the straight-line method based on a nine-year life with no salvage value. On June 30, 2010, the asset was discarded with no cash proceeds. What gain or loss should be recognized on the retirement?
A. No gain or loss
B. $10,000 loss
C. $7,500 loss
D. $5,000 gain