Reference no: EM132558351

Question 1. On January 1, Bixby Machine signed a $210,000, 6%, 30-year mortgage that requires semiannual payments of $7,585 on June 30 and December 31 of each year. What's the correct journal entry for recording the second semiannual payment? (Round interest calculation to the nearest dollar.)

Question 2. On January 1, $500,000 of 8%, 10-year bonds were sold for $530,000. The bonds require semiannual interest payments on June 30 and December 31. What's the correct entry for recording the June 30 interest payment on the bonds?

Question 3. Motor Works, Inc. has declared a $20,000 cash dividend to shareholders. The company has 5,000 shares of $15-par, 10% preferred stock and 10,000 shares of $20-par common stock. The preferred stock is non-cumulative. How much will the preferred and common stockholders receive on the date of payment?

Question 4. Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They've declared a 7% stock dividend. The current market price of the common stock is $11/share. What amount will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration?

Question 5. Accounts receivable amounts to $215,000 for the beginning of the year and $245,000 for the end of the year. Income reported on the income statement for the year is $300,000. How much is the cash flow from operating activities on the cash flow statement using the indirect method?

Question 6. Operating expenses other than depreciation for the year were $400,000. Accrued expenses increased by $35,000. What are the cash payments for operating expenses reported on the cash flow statement using the direct method?

Question 7. Red Line, Inc. has a cash balance of $80,000, short-term investments of $20,000, net receivables of $60,000, and inventory of $450,000. Current liabilities total $200,000. What's Red Line's quick ratio?

Question 8. River City, Inc. reported the following for 2018:

Net sales                                                     $220,000

Net Income                                                   $37,000

Market price per share of common stock                 $28.75

Dividends                                                           $4,100

Average number of shares of common stock

outstanding                                                            $10,000

What are the earnings per share for River City, Inc. (to the nearest cent)?