# 1.) If 100,000 is borrowed for 9 months at an annual rate of 8%

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Hi! So I attached a doc to this and its about 22 multiple choice questions. Now a few of the answers are online but they don’t have a description on why it is done. i will tip nicely if it is all explained. There are also a few of the online answers that are WRONG (hence why I need the corrected answers) Thanks!!! accounting.docx 1.) If 100,000 is borrowed for 9 months at an annual rate of 8% interest all due at maturity then the full amount of cash including principle and interest to be paid at maturity amounts to. A. 6,000 B. 8,000 C. 106,000 D. 108,000 E. None of these 2.) On Jan 20X4 a company purchased a building for 250,000 borrowing 200,000 from the bank to used with their own existing cash for the purchase. The 200,000 bank to be used with their own existing cash for the purchase. The 200,000 bank mortgage has a 10 year term and bears an annual interest rate of 8% compounded monthly. Payments of principle and interest amounting to 2,426.55 are to be made at the end of each month beginning 1/31/X4. Determine the balance of the mortgage payable at 3/1/X4 assuming the monthly payment was properly paid and recorded at the end of January and February. (round to the nearest cent) A. 195,146.90 B. 197,342.23 C. 197,806.28 D. 198,906.78 E. 200,000 3.) The issuance of a bond by corporation is A. An example of debt financing B. An example of equity financing C. None of these 4.) Preferred stock issued by a corporation is classified for financial statement purposes as A. Debt financing B. Equity financing C. None of these 5.) The issuance of 200 shares of \$1 par value common stock for \$10 per share would be recorded with the following journal entry A. (debit)Cash 2,000, (credit) common stock 2,000 B. (debit) Cash 2,000, (credit) common stock 200 AND (credit) retained earnings 1,800 C. (debit) cash 2,000, (credit) common stock 200 AND (credit) gain on sale 1,800 D. (debit) cash 2,000, (credit) common stock 200, AND (credit) paid in capital in access 1800 For 6,7 use the following information. A company has the following outstanding stock at the end of both 20X7 and 20X8; preferred stock (6%, \$100 par value, 1,000 shares issued and outstanding) Common stock (\$1 par value, 200,000 shares issued and outstanding) No dividens were declared or paid 20X7 6.) If a company’s preferred stock is non-cumulative and the 20X8 dividend declared amounts to a total of 20,000 how much will go to preferred stock holders? A. 6,000 B. 8,000 C. 12,000 D. 14,000 E. 20,000 7.) If the company preferred stock is cumulative and 20X7 dividens are the only dividens in arrears what portion of a 20X8 dividend declaration of 20,000 will go to the common stockholders? A. 6,000 B. 8,000 C. 12,000 D. 14,000 E. 20,000 9.) In the purchase of a used truck for 15,000 additional cost incurred in its acquisition including \$250 delivery costs, \$900 of sales tax and \$300 for an engine overhaul that was deemed necessary prior to its intial use. It is expected that annual recurring engine maintenance cost will run approximately \$250 per year beginning one year following date of acquisition. The total capital expenditures for the truck that should be included in the asset account? A.) 16,700 B.) 16,450 C.) 16,100 D.) 15,250 E.) 15,000 10.) On July 1 20X5 a company purchased equipment for 25,000. The equipment has a 10 year estimated usedful life, at the end of which time its salvage value vis estimated to be 5,000. Assuming the company uses straight line method depreciation, the company’s journal entry for equipment’s depreciation for the year ended 12/31/X6 would include a credit to A. Depreciation Expense 2,000 B. Equipment 2,000 C. Accumulated depreciation 3,000 D. Accumulated depreciation 2,000 E. None of these FOR 11 AND 12! At 12/31/X8 the following information for a building purchased 10 years previously is available. Orginal cost upon acquisition is \$650,000. Current appraised value at 12/31/X8 is \$750,000. Estimated salvage valu