Curtain Company paid dividends of $6,000, $12,000, and $20,000 during Year 1, Year 2, and Year 3, respectively. The company had 1,000 shares of 5%, $200 par value preferred stock outstanding that paid a cumulative dividend. What is the total amount of dividends paid to common shareholders during Year 3?

Which of the following is a contra equity account?

Ogilvie Corporation issued 31,000 shares of no-par stock for $50 per share. Ogilvie was authorized to issue 54,000 shares. What effect will this event have on the company’s financial statements?

Montana Company was authorized to issue 200,000 shares of common stock. The company had issued 50,000 shares of stock when it purchased 10,000 shares of treasury stock. After the purchase of treasury stock, the number of outstanding shares of common stock was which of the following?

On January 1, Year 1, Marino Moving Company paid $100,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $34,000 salvage value. If Marino uses the straight-line method, the amount of accumulated depreciation shown on the Year 2 balance sheet is:

On December 31, Year 1, the Loudoun Corporation estimated that 3% of its credit sales of $112,500 would be uncollectible. Loudoun uses the allowance method. On February 15, Year 2, one of Loudoun’s customers failed to pay his $1,050 account and the account was written off. On April 4, Year 2, this customer paid Loudoun the $1,050.Which of the following correctly states the effect of Loudoun Company writing off the customer’s account? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityCash+Net Realizable Value=Accounts Payable+Common Stock+Retained EarningsRevenue−Expense=Net Incomea. + = + + − = b. +(1,050)= + +(1,050)(1,050)− =(1,050) c. +(1,050)=(1,050)+ + − = d. + =1,050+(1,050)+ −1,050=(1,050)

Chico Company borrowed $40,000 on a four-year, 8% installment note. How will this transaction affect Chico’s financial statements?

On January 1, Year 1, Victor Company issued bonds with a $400,000 face value, a stated rate of interest of 3%, and a 5-year term to maturity. The bonds sold at 93. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums.What is the carrying value of the bond liability at December 31, Year 3?

How does the going concern assumption affect accounting for notes payable?

Which of the following statements about par value is true?