Reference no: EM132574816

McLennan Corporation issued $200,000 of 9.5% five-year bonds. The bonds are dated and sold on January 1, 2014. Interest payment dates are January 1 and July 1. The bonds are issued for $196,140 to yield the market interest rate of 10%. Use the effective-interest method

Question 1: What is the amount of interest expense that McLennan Corporation will record on July 1, 2014, the first semi-annual interest payment date?

a. $9,807

b. $9,926

c. $10,000

d. $19,000

Question 2: What is the amount of discount amortization that McLennan Corporation will record on July 1, 2014, the first semi-annual interest payment date?

a. $0

b. $74

c. $193

d. $807

Question 3: What is the total cash payment for interest for each 12-month period?

a. $10,000

b. $19,000

c. $19,614

d. $20,000

Question 4: What is the carrying amount of the bonds on the December 31, 2014, balance sheet?

a. $196,140

b. $196,526

c. $196,769

d. $196,912

Question 5:  Using straight-line amortization, the carrying amount of McLennan Corporation's bonds at December 31, 2014, is which of the following?

a. $196,140

b. $196,526

c. $196,769

d. $196,912

Question 6: Copeland Company is authorized to issue 40,000 $10 common shares. On January 15, 2014, Copeland issued 10,000 shares at $15 per share. Copeland's journal entry to record these facts should include a

a. credit to Common Shares for $100,000.

b. credit to Common Shares for $150,000.

c. debit to Common Shares for $150,000.

d. Both a and b

Question 7: Casio has issued ______ common shares.

a. 74,000

b. 180,000

c. 225,000

d. some other amount

Question 8: Casio's total share capital at March 31, 2014, is

a. a. $495,000.

b. b. $180,000.

c. c. $1,175,000.

d. d. some other amount.

Question 9: Casio's total shareholders' equity as of March 31, 2014, is

a. a. $1,406,000.

b. b. $1,249,000.

c. c. $480,000.

d. d. $1,480,000.

Question 10: What would Casio's total shareholders' equity be if it executed a 2-for-1 stock split on April 1, 2014? _ there won't be any change in the total dollar value of the shares

Question 11: Woodstock Corporation executed a 3-for-1 stock split on a day when its shares had a market price of $0.75 per share. After the split, what would you expect its share price to be? ___750000_________