Perry Corporation was established on January 1, Year 1 when it issued 21,800 shares of $50 par, 5 percent, cumulative preferred stock and 66,000 shares of $10 par value common stock. The company’s earnings history is as follows: Year 1$121,360Net lossYear 2$200,000Net incomeYear 3$210,000Net income The corporation paid the maximum amount of dividends possible in each year of operation. The dividend paid to preferred stockholders at the end of Year 2 is

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $370,000; Building, $1,100,000 and Equipment, $730,000.What value will be reported for the land on the balance sheet?Note: Round intermediate percentage values to a whole percentage. Do not round other intermediate calculations.

Which of the following procedures are typically used when a petty cash fund is established?

Which of the following should be the main determinant for selection of the allocation method for long-term operational assets?

On October 1, Year 1 Hernandez Company loaned $60,000 cash to Acosta Company. The one-year note carried a 6% rate of interest. Which of the following shows how the December 31, Year 1 recognition of accrued interest will affect Hernandez’s financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net IncomeA.900= +900900− =900900 IAB.900= +900900− =900 C.2,700= +2,7002,700− =2,7002,700 IAD.2,700= +2,7002,700− =2,700

On January 1, Year 1, Strang Incorporated issued bonds with a face value of $500,000, a stated rate of interest of 8%, and a 5-year term to maturity. The effective rate of interest was 10%. Interest is payable in cash on June 30 and December 31 of each year. Which of the following statements is true?

Which accounting concept can be used by some companies to justify the use of the direct write-off method?

If the financial statements cannot be relied upon because they contain one or more material departures from GAAP, what type of opinion will the auditor issue?

Which of the following statements is true when bonds are issued at a premium?

Blair Scott started a sole proprietorship by depositing $40,000 cash in a business checking account. During the accounting period, the business borrowed $20,000 from a bank, earned $5,800 of net income, and Scott withdrew $7,000 cash from the business. Based on this information, what is the balance in Scott’s capital account at the end of the accounting period?