Blue Angel Company has $110,000 of 9% noncumulative, preferred stock outstanding. Blue Angel also has $510,000 of common stock outstanding. In the company’s first year of operation, no dividends were paid. During the second year, the company paid cash dividends of $31,000. This dividend should be distributed as follows:

Northwest Corporation issued 10-year, 7% bonds with a par value of $250,000. Interest is paid semiannually. The market rate on the issue date was 6%. Northwest received $268,603 in cash proceeds. Which of the following statements is true?

Brickton Corporation’s most recent balance sheet reports total assets of $35,000,000 and total liabilities of $17,500,000. Management is considering issuing $5,000,000 of par value bonds (at par) with a maturity date of ten years and a contract rate of 7%. What effect, if any, would issuing the bonds have on the company’s debt-to-equity ratio?

Maple Corporation accepted a $17,200, 90-day, 6% note from Tracy Janitorial on October 17. What entry should Maple Corporation make on January 15 of the next year when the note is paid?  Note: Use 360 days a year.

When preparing a statement of cash flows using the indirect method, which of the following is correct?

The effective-interest method of amortizing bond premium applies a(n) _________ rate of interest to a(n) __________ carrying amount of the bond payable.

Burke Corporation sold 13,000 shares of its $10 par value common stock at a cash price of $15 per share. The entry to record this transaction would include:

Dominic Company borrowed $26,000 by signing a 180-day promissory note at 6%. The total to be paid at maturity of the note is:

Prior to June 30, Promotions Company has never had any treasury stock transactions. The company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 30 of the shares at $28 per share. What is the journal entry necessary to record the reissuance of treasury stock on August 1?

Prior to June 30, Promotions Company has never had any treasury stock transactions. The company repurchased 100 shares of its $1 par common stock on June 30 for $40 per share. On July 20, it reissued 50 of these shares at $46 per share. On August 1, it reissued 30 of the shares at $28 per share. What is the journal entry necessary to record the reissuance of treasury stock on August 1?