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Accounting Practice Questions with Solutions

Question 1

On April 1, 2016, Alpha Company issued \$500,000 of 12%, 10-year bonds.  The bonds, which were issued at 103, pay interest on October 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required."

On June 1, 2016 Alpha Corporation issued \$300,000 of 9%, 5-year bonds.  The bonds which were issued at 97, pay interest on January 1 and June 1. Use this information to prepare the General Journal entry (without explanation) to record the June 1, 2016 bond issue. If no entry is required then write "No Entry Required.

On June 30, 2016, Alpha Corporation issued \$200,000 of 10% ten-year bonds at 103 on its semiannual interest date. Alpha uses the straight-line method for amortization. Use this information to determine the carrying value of this bond issue after adjusting entries have been made on June 30, 2019? Round your answer to the nearest whole dollar.

On August 1, 2016, Alpha Company entered into a capital lease, and correctly recorded the leased asset, and related obligation at \$50,000.  The annual interest rate implicit in the lease was 6%, and the first lease payment of \$2,000 is due at the end of each month of the lease.  Use this information to prepare the General Journal entry (without explanation) for the August 31, 2016 monthly lease payment. If no entry is required then write "No Entry Required." (Round your answer to the nearest whole dollar.) complete journal entry

On January 1, 2016, Alpha Company secured a \$100,000, 6% annual rate mortgage note.  Monthly payments are \$1,500, with the first payment being due on January 31 2016, what is the unpaid balance of the note on March 1, 2016? (Round your answer to the nearest whole dollar.)

On August 1, 2017, Alpha Company retired a \$10,000 bond at 102. On July 31, 2017 Alpha had accrued the interest payment for \$250. At the date of retirement, the unamortized discount on the bonds was \$400. Use this information to determine the dollar value of Alpha Company's: (Round all dollar values to the nearest whole dollar.)

1. Gain or Loss on Retirement of Bond: enter any loss dollar & amount inside of brackets ( )

2. Cash paid to retire the bond issue

3. Amount of Interest Payable liquidated at retirement

4. Amount of Premium or Discount on Bond Payable liquidated at retirement

On January 2, 2016, Alpha Corporation issued 2,500 shares of \$5 par value common stock. The issue price was \$15 per share. On January 15, Alpha Corporation issued 1,000 shares of its \$100 par 5% cumulative preferred stock for \$105 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries.

On January 2, 2016, Alpha Corporation issued 2,500 shares of \$4 par value common stock. The issue price was \$15 per share. On January 15, Alpha Corporation issued 1,000 shares of its \$100 par 5% cumulative preferred stock for \$107 per share. Use this information to prepare the General Journal entry (without explanation) for the January 2 and January 15 entries.

On January 2, 2016, Alpha Corporation issued 15,000 shares of \$10 par value common stock for \$15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading \$20 each. Use this information to prepare the General Journal entries (without explanation) for January 2 and March 1.

On January 2, 2016, Alpha Corporation issued 15,000 shares of \$10 par value common stock for \$15 per share. On March 1, 2016, Alpha reacquired 1,000 of these shares when they were trading \$20 each. September 1, 2016, when the market was soaring, Alpha reissued 500 shares of treasury stock at the going market rate of \$22 per share. Use this information to prepare the General Journal entry (without explanation) for September 1.

On December 31, 2015, Alpha Corporation has outstanding 1,000 shares of \$100 par value, 7% cumulative and nonparticipating preferred stock, and 20,000 shares of \$10 par value common stock. No dividends were paid in 2015. During 2016, Alpha distributed \$40,000 in dividends. Use this information to determine for the 2016 the dollar amount of dividends that will be distributed to:

1. Preferred Stock

2. Common Stock

On January 1, 2016, Alpha Corporation had 200,000 shares of common stock outstanding with a par value of \$3 per share. On March 31, Alpha Corporation declared a 10% stock dividend when the market value was \$10 per share. Use this information to prepare the General Journal entry (without explanation) for March 31. If no entry is required then write "No Entry Required."