recorded at $115,000. What amount of interest expense should the company report
ID: 2339283 • Letter: R
Question
recorded at $115,000. What amount of interest expense should the company report on its income statement for the year ended December 31, 20X0? (a) S11,500. (b) S 4,500. (c) 3,450. (d) $15,000. 20. Ignoring your answer to Question 19, assume that the note payable is Ignoring your answer to Question 19, assume that the note payable is recorded at S115,000. What amount of discount on notes payable should be reported on the balance sheet at December 31, 20X0? (a) $23,450. (b) $35,000. 21. (c) $24,500 (d) $28,000. 22. A company receives deposits from its customers as a protection against nonpayment for future services. These deposits should be classified as a(n): (a) Liability (b) Stockholders' equity (c) Revenue. (d) Asset. 23. On July 1, 20X0, Prague Company issued 10,000 shares of its $2 par value common stock and 2,000 shares of its $25 par value preferred stock for a lump sum amount of $80,000. On this date, Prague's common stock was selling for $4 per share and the preferred stock was selling for $25 per share. The amount of the lump sum that should be allocated to the common stock (a) $44,444. (b) $40,000. (c) $35,556. (d) $22,857 6Explanation / Answer
Please provide complete question to solve 20 & 21.
22.Liability
23. MV
Equity 40000 (10000 shares * 4)
Preference Shares 50000 (2000 shares *25)
Total MV 90000
Consideration Received 80000
Amount to be allocated to equity =$80000*40000/90000
= $35556
Therefore the answer is $35556.
24.B Cash A/C Dr 120000
To Common Stock 100000
To Contributed Capital in
Excess of par value 20000
25.Unrealized Loss on Available for sale securities.
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