Question 1 (1 point) On December 31, 2023, Contreras Corp. has 1,500 shares outstanding of $20 par value 6% preferred st

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Question 1 (1 point)
On December 31, 2023, Contreras Corp. has 1,500 shares
outstanding of $20 par value 6% preferred stock and 3,000 shares
outstanding of $30 par value common stock. The company did
not pay out dividends in 2021 and 2022. As of December 31, 2023,
the company will distribute $110,000 in dividends. Contreras
began operations January 1, 2021.
How much will the common stockholders receive if the preferred
stock is non-cumulative and non-participating. (round calculations
to 4 decimal places)
Question 1 options:
a)
$5,400
b)
$108,200
c)
$104,600
d)
$1,800
Question 2 (1 point)
On December 31, 2021, Dynasite Company sells equipment to Gray
Inc. for $124,600. Dynasite includes a 1-year assurance warranty
service with the sale of all its equipment. The customer receives
and pays for the equipment on December 31, 2021. Dynasite estimates
the prices to be $122,000 for the equipment and $2,600 for the cost
of the warranty. In addition to the assurance warranty,
Dynasite sold an extended warranty (service type warranty) for an
additional 2 years (2023–2024) for $2,800.
The entry for Dynasite on December 31, 2021 includes a
Question 2 options:
a)
credit to cash for $124,600.
b)
credit to sales revenue for $127,400.
c)
credit to unearned warranty revenue for $2,800
d)
credit to unearned revenue for $2,600.
Question 3 (1 point)
Hoerner Company had 850,000 shares of common stock outstanding
as of December 31, 2023. On October 1, 2024, an additional 125,000
shares of common stock were issued. In addition, Hoerner had
$6,000,000 of 4% convertible bonds outstanding at December 31,
2020, which are convertible into 300,000 shares of common stock. No
bonds were converted into common stock in 2024. The net income for
the year ended December 31, 2024, was $1,750,000. Assuming the
income tax rate was 30%, the diluted earnings per share for the
year ended December 31, 2024, should be (rounded to the nearest
penny)
Question 3 options:
a)
$1.99
b)
$2.18
c)
$1.62
d)
$1.48
Question 4 (1 point)
Rizzo Corp. began operations on Jan. 1, 2023. Rizzo Corp.
is authorized to issue 250,000 shares of it's 6%, $120 par value
preferred stock. The company is authorized to issue 780,000
shares of the common stock with a par value of $5 per share.
On January 5, 2023, the company issued 315,000 shares of common
stock for cash at $12 per share.
On January 2, 2024, the company acquired 30,500 shares of its
own common stock at $19 per share. On March 1, 2024, Rizzo Corp.
sold 12,500 of these shares at $16 per share. No other treasury
stock has been sold by the company in the past. To record the sale
of the 12,500 treasury shares on March 1, 2024, Rizzo's journal
entry should include a debit to
Question 4 options:
a)
Treasury Stock for $200,000.
b)
Paid-in Capital from Treasury Stock for $37,500.
c)
Cash for $237,500.
d)
Retained Earnings for $37,500.
Question 5 (1 point)
Arrieta Company purchased $2,250,000 of 8% bonds of Baez Company
on January 1, 2023, paying $1,969,601. The bonds mature January 1,
2033; interest is payable each July 1 and January 1. The effective
yield on the bonds is 10%. Arrieta Company uses the
effective-interest method and plans to hold these bonds to
maturity.
What should the company record as total Interest Revenue for the
first year of 2023?
Question 5 options:
a)
196,384
b)
180,000
c)
225,000
d)
197,384
Question 6 (1 point)
Rizzo Corp sells baseballs and sporting equipment along with the
installation of sporting equipment (such as basketball hoops,
batting cages, etc.) When the company records revenue, a
transaction price for multiple performance obligations should be
allocated:
Question 6 options:
a)
based on what the company could sell the goods for on a
standalone basis.
b)
based on total transaction price less residual value.
c)
based on selling price from the company’s competitors.
d)
based on forecasted cost of satisfying performance
obligation.
Question 7 (1 point)
Heyward Corporation has issued common stock and preferred stock
in a lump sum sale on January 2, 2024. The company issued
1,500 shares of common stock and 850 shares of preferred stock for
a lump sum of $300,000 cash. The par value of the common
stock is $25 per share and par value of the preferred stock is $22
per share. On the date of issuance, the fair value of common
stock is $28 per share the fair value of the preferred stock is $32
per share. Each Stock has a ready market for buying and selling the
stock.
In the journal entry for the issuance of the common stock, how
much is credited to the Paid-in-Capital in Excess of Par - Common
Stock account? (round calculations to 2 decimal places)
Question 7 options:
a)
$983,000
b)
$145,500
c)
$37,500
d)
$163,500