Wininger Corporation has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 25,000 shares of $1 par value common stock outstanding on December 31, 2019 and December 31, 2020. The board of directors declared and paid a $2,000 dividend in 2019. In 2020, $15,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2020 (there were no dividends in arrears prior to 2019)?

Advantages of a corporation include:

A.
double taxation of distributed profits.

B.
limited liability of the stockholders for the corporation's debts.

C.
each stockholder can conduct business in the name of the corporation.

D.
difficulty in raising large sums of capital.
Answer
 limited liability of the stockholders for the corporation's debts.


A company started the year with $500 of supplies. During the year, the company purchased an additional $1,000 of supplies. There were $700 of supplies on hand at the end of the year. An adjusting entry prepared at the end of the accounting period includes a:

A.
debit to Supplies Expense for $800.

B.
debit to Supplies for $500.

C.
debit to Supplies for $700.

D.
debit to Supplies Expense for $200.
Answer
A.
debit to Supplies Expense for $800.


Wininger Corporation has 1,000 shares of 6%, $50 par value, cumulative preferred stock and 25,000 shares of $1 par value common stock outstanding on December 31, 2019 and December 31, 2020. The board of directors declared and paid a $2,000 dividend in 2019. In 2020, $15,000 of dividends are declared and paid. What are the dividends received by the common stockholders in 2020 (there were no dividends in arrears prior to 2019)?

A.$1,000

B.$3,000

C.$15,000

D.$ 11 000
Answer
$ 11 000

Cubs Corporation issues $460,000, 9%, 5−year bonds on January 1, 2019 for $449,000. Interest is paid annually on January 1. If Cubs Corporation uses the straight−line method of amortization of bond discount, the amount of interest expense recorded at December 31, 2019 would be:

A.$43,600.

B.$11,000.

C.$39,200.

D.$41,400.
Answer
$43,600.

The most frequently used current liabilities are:

A.
cash, notes payable, and accrued liabilities.

B.
accounts payable, accounts receivable, and accrued liabilities.

C.
accounts payable, notes payable, and inventories.

D.
accounts payable, notes payable, and accrued liabilities.
Answer
accounts payable, notes payable, and accrued liabilities.

Closing entries:

A.
are the same as adjusting entries.

B.
are made at the beginning of each accounting period.

C.
brings all asset account balances to zero.

D.
prepare the accounts for the next period's transactions.

Answer

prepare the accounts for the next period's transactions.