Please double check my answers, thank you! Circle either the T or the F A $20,00
ID: 2585345 • Letter: P
Question
Please double check my answers, thank you!
Circle either the T or the F A $20,000, 89, 9-month note payable requires an interest payment of $1,200 at maturity FBond interest paid by a corporation is an expense, whereas dividends paid are not an expense of the corporation. F If a retailer sells goods for a total price of $200, which includes a 5% sales tax, the amount ofthe sales tax Payroll taxes include the employer's share of Social Srity taxes as well as state and federal The contractual, or stated, interest rate is always equal to the market rate of interest on the date that bonds If a corporation pays taxes on its income, then stockholders will not have to pay taxes on the is $9.52 unemplovment taxes. are issued. dividends received from that corporation. F A corporation must be incorporated in each state in which it does business T F The cost of treasury stock is deducted from total paid-in capital and retained earnings in F The sale of shares in a corporation by one stockholder to another affects the total capital of the F The par value of common stock must always be equal to its market value on the date the stock is F Operating activities include the cash effects of transactions that create revenues and expenses determining total stockholders' equity corporation issued The statement of cash flows explains the difference between net income, as shown on the income statement, and the net cash flows generated from operations. F The sale of land for cash would be classified as a cash inflow from an investing activity For accounting purposes, stated value is treated the same way as par value F The payment of interest on bonds payable is classified as a cash outflow from operating F In preparing a statement of cash flows, an increase in the Common Stock and Treasury Stock F Cash provided by operations is generally equal to operating income activities accounts during a period would be an investing activity T F Paid-in capital is the amount paid in to the corporation by stockholders in exchange for shares of ownership T F The acquisition of a building by issuing bonds would be considered an investing and financing activity on the statement of cash flows F The acquisition of treasury stock by a corporation increases total assets and total stockholders equityExplanation / Answer
suggession: When your uploading such type of question please give serial number to each sub question , so that you wont get any confusion in the answer
1 TRUE Answer: = $ 20000 * 8 % = 1600 1600/12*9 = 1200 2 TRUE 3 TRUE 4 FALSE 5 FALSE 6 TRUE There wont be Double taxatin an any Income 7 FALSE Can conduct business from the Head office 8 FALSE 9 FALSE Does not effect the total capital of the corporation 10 FALSE The par value of common stock may not be equal to the market value 11 TRUE 12 FALSE 13 TRUE 14 FALSE 15 FALSE payment of interest payable on bonds is classifies as Financing Activity 16 FALSE It Would be an Investing Activity 17 TRUE 18 TRUE Paid in capital is the amount in exchange of shares 19 TRUE Purchase of Building is an Investing Activity and issue of Bonds is an Financing Activity 20 FALSE It Increases total stockholders equity