Question

Hello, please help me understand the following 8 questions. Thank you kindly for your time and your generous help.

1)

Secured bonds:

Are called debentures.

Have specific assets of the issuing company pledged as collateral.

Are backed by the issuer's bank.

Are subordinated to those of other unsecured liabilities.

Are the same as sinking fund bonds.

2)

Bonds that give the issuer an option of retiring them before they mature are:

Debentures.

Serial bonds.

Sinking fund bonds.

Registered bonds.

Callable bonds.

3)

A corporation declared and issued a 5% stock dividend on October 1. The following information was available immediately prior to the dividend:

 

 

The amount that contributed capital will increase (decrease) as a result of recording this stock dividend is:

$0.

$53,200.

$(53,200).

$14,000.

$(14,000).

4)

On September 1, Ziegler Corporation had 72,000 shares of $5 par value common stock, and $216,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is:

Debit Retained Earnings $1,080,000; credit Common Stock Split Distributable $1,080,000.

Debit Retained Earnings $1,080,000; credit Common Stock $1,080,000.

Debit Retained Earnings $360,000; credit Common Stock $360,000.

Debit Retained Earnings $360,000; credit Stock Split Payable $360,000.

No entry is made for this transaction.

5)

A company issued 100 shares of $100 par value common stock for $11,800 cash. The total amount of paid-in capital in excess of par is:

$100.

$1,000.

$1,800.

$10,000.

$11,800.

6)

Debit Land $94,000; credit Common Stock $94,000.

Debit Land $62,000; credit Common Stock $62,000.

Debit Common Stock $94,000; credit Land $94,000.

8)

A company's income statement showed the following: net income, $149,000 and depreciation expense, $37,500. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $11,900; merchandise inventory increased $23,000; and accounts payable increased $5,900. Calculate the net cash provided or used by operating activities.

$143,000.

$191,700.

$145,700.

$181,300.

$215,500.

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