30 Hooper Corporation has bonds outstanding with a face valu

30. Hooper Corporation has bonds outstanding with a face valus of $100,000 and a value of 103,000 n December 31, 20x7. If the company calls in and retires these bonds on Decen 20x7, for$105,000 the entry to record the retirement will inelade a a b. c. d. debit to Bonds Payable for $103,000. credit to Cash for $103,000. debit to Loss on Retirement of Bonds for $2,000. debit to Loss on Retirement of Bonds for $3,000 31. The board of directors of Berweck Corporation declared a cash dividend on January 18, 20x7, to be paid on February 18, 20x7, to sharcholders holding the stock on February 2, 20x7. Given these facts, the date February 2, 20x7, is referred to as the a. payment date. b. ex-dividend date c. declaration date. d. record date. 32. The number of shares of issued stock equals a. outstanding shares plus treasury shares. b. unissued shares minus authorized shares. authorized shares minus treasury shares. subscribed shares plus outstanding shares. c. d. 33. Honig Corporation had the following shares of stock outstanding on December 31, 20x8: Common stock, $50 par value, 100,000 shares outstanding Preferred stock, 8 percent, $100 par value, cumulative, 10,000 shares outstanding Dividends were in arrears for 20x6 and 20x7. On December 31, 20x8, total cash dividends of $400,000 were declared. The total amounts payable to preferred stockholders and common stockholders, respectively, are a. $160,000 and $240,000. b. $80,000 and $320,000. c. $200,000 and $200,000. d. $240,000 and $160,000. 8 D D00 5%! 34. Use the following information to answer the question below When Calvert Corporation was formed on January 1, 20x7, the corporate charter provided for 50,000 shares of $20 par value common stock. The following transactions were among those engaged in by the corporation during its first month of operation: assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency 1. The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for 2. The company issued 8,000 shares of common stock at a price of $25 per share. 3.The company issued 7,000 shares of common stock in exchange for equipment that had a fair market value of $160,000. UIBE ACC212 Financial Accounting/Geyer/Summer 2018

Solution

30. c) , loss on retirement of bond will be debited by $2000 [$103000 carrying value - $105000 cash paid]

31. d) , February 2,20X7 will be considered as record date ,because record will come before paying the dividend and payment of dividend liability will arise.

32. a) , Outstanding shares at year end ,plus the treasury shares (which are bought back) during the period.

33. d)

payment oto Preferred stockholders = 10000 share * $100 * 8% * 3 years (2006 to 2018)

= $240000

Payment to common stockholder = $400000 - $240000

= $160000