ACCT 2010 Final Exam Review Questions and Verified Answers

Comprehensive income is: not used to determine net income or earnings per share. Sales revenue less cost of goods sold is called: gross profit. The basic form of capital stock is: a share of common stock. On January 1, 2017, the Bonds Payable account has a balance of $690,000. On December 31, 2017, the Bonds Payable account has a balance of $810,000. During 2017, one bonds of $10,000 was retired. No discounts or premiums were amortized in 2017. What amount of new bonds were issued in 2017? $130,000 Wendell Corporation reported net income for the current year of $830,000. Wendell had 3,000 shares of $130 par value, 12% preferred stock outstanding and 39,000 shares of $1 par value common stock outstanding for the entire year. Earnings per share is: $20.08 A company has 300,000 shares issued and outstanding of $1 par common stock. After a 2-for-1 stock split, which of the following statements is FALSE? The number of shares issued is 150,000. Eastwich Corporation has pretax accounting income of $5,900,000 and taxable income of $5,820,000. The company's income tax rate is 20%. The journal entry to record the income tax includes a: credit to Deferred Tax Liability of $16,000. Miller Corporation issued 12,000 shares of its $5 par value common stock in payment for attorney services billed at $180,000. Miller Corporation's stock has been actively trading at $15 per share. The journal entry for this transaction would include a credit to: Paid-in Capital in Excess of Par-Common for $120,000. The financial statements are the responsibility of: management. If a corporation declares a $100,000 cash dividend, the account to be debited on the date of declaration is: Retained Earnings or Dividends. Income tax payable appears on the: balance sheet. If a corporation issues 2,000 shares of $1 par value common stock for $8,000, the journal entry would include a credit to: Common Stock for $2,000.