Questions 14-16 use the same set of information   On January 1, Year 1 Cantlay Company issued $50,000 of 20-year, 7% bonds. The bonds were issued at face value. Interest is payable in cash on December 31 of each year, with the first payment due December 31, Year 1. Which of the following shows the journal entry necessary to record the bond interest payment on December 31, Year 1?

Questions 17 and 18 use the same information set   On January 1, Year 1, Jones Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of interest EXPENSE shown on Jones’ income statement for the year ending December 31, Year 1?

Which of the following is not normally a preference (or privilege) given to the holders of preferred stock?

A company had sales of $420,000 in Year 1. The company warrants its products and estimates warranty expense to be 3% of sales. In Year 2, the company paid $10,000 cash for warranty repairs. Which of the following journal entries correctly records the warranty repairs in Year 2?

Which of the following is the maximum number of shares of stock that a corporation may issue?

Kier Company issued $520,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 4-year term to maturity. The bonds have a 6.50% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and related cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1?

Which of the following statements about par value is true?

Questions 14-16 use the same set of information   On January 1, Year 1 Cantlay Company issued $50,000 of 20-year, 7% bonds. The bonds were issued at face value. Interest is payable in cash on December 31 of each year, with the first payment due December 31, Year 1. Which of the following shows the journal entry required to recognize the bond issue on January 1, Year 1?

A company had sales of $210,000 in Year 1. The company includes a warranty on all products and estimates warranty expense to be 4% of sales. Which of the following is the correct year-end adjusting entry to recognize the estimated warranty obligation?

If a stockholder purchases stock ex-dividend (i.e., after the date of record), they will not receive the dividend on the payment date.