Question

ACCT 2121 SPRING 2019 (HUNTER) CHAPTER 11 IN-CLASS AND HOMEWORK EXERCISES 4. HW1184: THE ACCOUNTING EQUATION: At Sentember 1, the Balance Sheet accounts for Kiner Restaurant were as follows: Rewew Chapter 3 pp. 94 to 98. Accounts Payable $3,800 Land Investment $33,000 Accounts Receivable 1,600 Accumulated Depreciation 3,000 Buildings 69,000 Notes Payable 40,000 5,000 Supplies 3,600 Equipment 15,700 Unearned Revenues 6,000 INSTRUCTIONS: (a) Using the accounting equation, as of September 1. calculate total stockholders' equity. S Cash (b) Record the effects of the following September 20 transactions on the accounting equation. 1. Stockholders invested an additional S20,000 cash in the business. 2. The accounts payable were paid in full using cash. 3. No payment was made on the notes payable and no dividends were paid. () Using the accounting equation, as of September 30, calculate stockholders' equity. S. 5. HW1185: BALANCE SHEET Presentation: In the Stockholders' Equity Section of the Balance Sheet; Common Stock: A) Is listed before Preferred Stock. B) Is listed after Retained Earnings. C) is part of Paid-in Capital. D) is subtracted from Treasury Stock. 6. HW11#6: GLOSSARY:PAID IN CAPITAL: Capital stock that has been assigned a value per share in the corporate charter is called: A) Stated value stock. B) Treasury stock C) No par value stock. D) Par value stock. 7. HW11#7: FORMING A CORPORATION: Determine whether the following statements are true or false in the order presented. 1. _A corporation must be incorporated in each state in which it does business. 2. __For accounting purposes, stated value is treated the same way as par value. 3. The number of common shares outstanding can never be more than the number of shares issued A) True and True and True B) False and True and False C) False and True and True D) False and False and False 8. HW11#8: Review the BALANCE SHEET for Graber Inc.-Illustration 11-16 in the textbook. What authorized the value of Graber Inc. preferred and common stock? A) Preferred stock $100 par value and common stock $5 par value, both authorized by corporate charter B) Preferred stock $100 par value authorized by corporate charter and common stock $5 stated value authorized by Board of Directors. C) Preferred stock $100 stated value and common stock $5 stated value, both authorized by Board of Directors. D) Preferred stock and common stock values authorized by the shareholders. Page 2

Answer 1

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