A 6. A corporation purchased 1000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?
a.
$0
b.
$5000
c.
$2500
d.
$10000
___c _ 7. A corporation has 40000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split the number of shares outstanding after the split will be:
a.
160000 shares
b.
40000 shares
c.
120000 shares
d.
10000 shares
____c 8.A corporation has 50000 shares of $28 par value stock outstanding that has a current market value of $160. If the corporation issues a 4-for-1 stock split the market value of the stock will fall to approximately:
a.
$7
b.
$112
c.
$40
d.
$640
C 11. If the market rate of interest is 8% the price of 6% bonds paying interest annually with a face value of $100000 will be:
a.
Equal to $100000
b.
Greater than $100000
c.
Less than $100000
d.
Greater than or less than $100000 depending on the maturity date of the bonds
___a _12.A corporation issues for cash $8000000 of 8% 30-year bonds interest payable annually. The amount received for the bonds will be:
a.
present value of 60 semiannual interest payments of $320000 plus present value of $8000000 to be repaid in 30 years
b.
present value of 30 annual interest payments of $640000
c.
present value of 30 annual interest payments of $640000 plus present value of $8000000 to be repaid in 30 years
d.
present value of $8000000 to be repaid in 30 years less present value of 60 semiannual interest payments of $320000
__c __14.When the market rate of interest was 12% Newman Corporation issued $1000000 11% 10-year bonds that pay interest annually. The selling price of this bond issue was:
a.
$ 352180
b.
$1000000
c.
$ 943494
d.
$588963
17. The Raymore Company issued 10-year bonds on January 1 2006. The 15% bonds have a face value of $100000 and pay interest every January 1. The bonds were sold for $116951 based on the market interest rate of 12%. Raymore uses the effective-interest method to amortize bond discounts and premiums. On January 1 2007 Raymore should record interest expense (round to the nearest dollar) of:
a.
$7032
b.
$7500
c.
$8790
d.
$14034
___d_ 15. The journal entry a company records for the issuance of bonds when the stated rate and the market rate are the same is:
a.
debit Bonds Payable credit Cash
b.
debit Cash and Discount on Bonds Payable credit Bonds Payable
c.
debit Cash credit Premium on Bonds Payable and Bonds Payable
d.
debit Cash credit Bonds Payable
__c__ 16. The journal entry a company records for the issuance of bonds when the stated rate is greater than the market rate would be:
a.
debit Bonds Payable credit Cash
b.
debit Cash and Discount on Bonds Payable credit Bonds Payable
c.
debit Cash credit Premium on Bonds Payable and Bonds Payable
d.
debit Cash credit Bonds Payable
i already got the answer but please show me the solution with clear details. thank you .