A current liability must be paid out of current earnings.

1. ACC 556 WEEK 6 HOMEWORK CHAPTER 10 AND 11 Just Click on Below Link To Download This Course: https://wiseamerican.us/product/acc-556-week-6-homework-chapter-10- 11/#.XsZbZVQzbDc Or Email us on SUPPORT@WISEAMERICAN.US ACC 556 WEEK 6 HOMEWORK CHAPTER 10 AND 11 CHAPTER 10 1. A current liability must be paid out of current earnings. 2. Most notes are not interest bearing. 3. Unearned revenues are received before goods are delivered or services are rendered. 4. The carrying value of bonds is calculated by adding the balance of the Discount on Bonds Payable account to the balance in the Bonds Payable account. 5. Material gains or losses on bond redemption are reported as an extraordinary item on the income statement. 6. Liabilities are classified on the balance sheet as current or 7. With an interest-bearing note, the amount of assets received upon issuance of the note is generally 8. The interest charged on a $70,000 note payable, at the rate of 6%, on a 90-day note would be 9. On January 1, 2014, Keisler Company, a calendar-year company, issued $700,000 of notes payable, of which $175,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2014, is 10. Norlan Company does not ring up sales taxes separately on the cash register. Total receipts for October amounted to $29,400. If the sales tax rate is 5%, what amount must be remitted to the state for October’s sales taxes? 11. Stockholders of a company may be reluctant to finance expansion through issuing more equity because 12. Which of the following is not an advantage of issuing bonds instead of common stock? 13. When authorizing bonds to be issued, the board of directors does not specify the 14. If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest annually would sell at an amount 15. If bonds are issued at a discount, it means that the 16. In the balance sheet, the account Discount on Bonds Payable is 17. If bonds have been issued at a discount, then over the life of the bonds the 18. Ervay Company has $875,000 of bonds outstanding. The unamortized premium is $12,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? 19. The relationship between current assets and current liabilities is 20. Match the items below by entering the appropriate code letter in the space provided. CHAPTER 11 1. A corporation is not an entity that is separate and distinct from its owners. 2. A stockholder has the right to vote in the election of the board of directors.

2. 3. The acquisition of treasury stock by a corporation increases total assets and total stockholders’ equity. 4. Cash dividends are not a liability of the corporation until they are declared by the board of directors. 5. A detailed stockholders’ equity section in the balance sheet will list the names of individuals who are eligible to receive dividends on the date of record. 6. Under the corporate form of business organization 7. Which of the following statements reflects the transferability of ownership rights in a corporation? 8. If a stockholder cannot attend a stockholders’ meeting, he may delegate his voting rights by means of a(n) 9. If Norben Company issues 4,000 shares of $5 par value common stock for $140,000, the account 10. Holden Packaging Corporation began business in 2014 by issuing 80,000 shares of $5 par common stock for $8 per share and 20,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2014 balance sheet, Holden Packaging would report 11. The following data is available for BOX Corporation at December 31, 2014: Common stock, par $10 (authorized 30,000 shares) $250,000 Treasury stock (at cost $15 per share) $ 1,200 Based on the data, how many shares of common stock are issued? 12. Which of the following is not a right or preference associated with preferred stock? 13. All of the following statements about preferred stock are true except 14. The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014, to stockholders of record on July 31, 2014. The effects of the journal entry to record the payment of the dividend on August 15, 2014, are to 15. Which of the following statements is not true about a 2-for-1 split? 16. The following selected amounts are available for Thomas Company. 17. In the stockholders’ equity section of the balance sheet 18. Herman Corporation had net income of $120,000 and paid dividends of $24,000 to common stockholders and $20,000 to preferred stockholders in 2014. Herman Corporation’s common stockholders’ equity at the beginning and end of 2014 was $450,000 and $550,000, respectively. Herman Corporation’s payout ratio for 2014 is 19. Which of the following statements is true regarding corporate performance ratios? 20. Match the items below by entering the appropriate code letter in the space provided. Download Now