Question

46. A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include:

		a credit to Common Stock for $140,000
		a debit to Paid-in-Capital in Excess of Par Value, for $42,000
		a credit to Common Stock for $182,000
		a debit to cash for $140,000

47. An internal control system is designed to

		ensure reliable accounting
		all choices are correct
		promote efficient operations
		protect assets

48. A company pays $6,000 for a $0.75 per share cash dividend. The company has 20,000 shares authorized and 9,000 shares have been issued. How many shares are in the treasury?

		1,000 shares
		None
		500 shares
		12,000 shares

49. A company normally sells its product for $20 per unit. However, the selling price has fallen to $15 per unit. This company's current inventory was purchased at $16 per unit. Replacement cost has now fallen to $13 per unit, and the company calculates the value of its inventory at $1,950, based on the lower of cost or market. How many units are in the inventory?

		100
		250
		200
		150

50. A company purchased $4,000 worth of merchandise. The company later returned $275 worth of merchandise and paid the invoice within the 2% cash discount period. Calculate the total amount paid for this merchandise.

		$4,000.50
		#3,725.00
		$3,925.00
		$3,650.50

Answer 1