. Bleeker Company issued 10,000 shares of its $5 par value common stock having a market value of $25 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock?

2. Bleeker Company issued 10,000 shares of its $5 par value common stock having a market value of $25 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock?

a. $50,000

b. $218,182

c. $250,000

d. $255,000

3. Adler Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2008, the first year of the corporation’s existence:

Sold 5,000 shares of common stock for $18 per share.

Issued 5,000 shares of common stock in exchange for a patent valued at $100,000.

At the end of the Adler’s first year, total paid-in capital amounted to

a. $40,000.

b. $90,000.

c. $100,000.

d. $190,000.

Part A (30 points)

Record the following transactions in the basic accounting equation:

a.Brian invests $10,000 cash to begin an accounting service.

b.The company buys office furniture for cash, $600.

c.The company buys additional office furniture on account, $300.

d.The company makes a payment on the office furniture, $200.

Brian’s Accounting Service

ASSETS = LIABILITIES + OWNER’S EQUITY

Cash + Office Furniture = Accounts Payable + Brian’s Capital

Part B (40 points)
The following is a list of accounts and their balances for Benson Company for the month ended June 30, 20xx. Prepare a trial balance in good form.

Cash $1,370
Accounts Payable 770
Office Equipment 900
Benson, Capital 1,500
Benson, Withdrawals 500
Accounts Receivable 1,600
Service Fees 2,730
Salaries Expense 630

Part C (30 points)
The following transactions occurred during June for Campus Cycle Shop. Record the transactions below in the T accounts. Place the letter of the transaction next to the entry. Foot and calculate the ending balances of the T accounts where appropriate.
a. Tyler invested $6,500 in the bike service from his personal savings account.
b. Bought office equipment for cash, $900.
c. Performed bike service for a customer on account, $1,000.
d. Company cell phone bill received, but not paid, $80.
e. Collected $500 from customer in transaction c.
f. Tyler withdrew $300 for personal use.

1. Which of the following is a current liability?

a. A long-term debt maturing currently, which is to be paid with cash in a sinking fund

b. A long-term debt maturing currently, which is to be retired with proceeds from a new debt issue

c. A long-term debt maturing currently, which is to be converted into common stock

d. None of these

2. Which of the following is not true about the discount on short-term notes payable?

a. The Discount on Notes Payable account has a debit balance.

b. The Discount on Notes Payable account should be reported as an asset on the balance sheet.

c. When there is a discount on a note payable, the effective interest rate is higher than the stated discount rate.

d. All of these are true.

3. On September 1, 2006, Looper Co. issued a note payable to National Bank in the amount of $1,200,000, bearing interest at 12%, and payable in three equal annual principal payments of $400,000. On this date, the bank’s prime rate was 11%. The first payment for interest and principal was made on September 1, 2007. At December 31, 2007, Looper should record accrued interest payable of

a. $48,000.

b. $44,000.

c. $32,000.

d.$29,334