Select the best answer:

$21.$ If Baylor Company issues $8,000$ shares of $$5$ par value common stock for $$280,000,$

a$.$ Common Stock will be credited for $$280,000.$

b$.$ Paid$-$In Capital in Excess of Par will be credited for $$40,000.$

c$.$ Paid$-$In Capital in Excess of Par will be credited for $$240,000.$

d$.$ Cash will be debited for $$240,000.$

$22.$ If common stock is issued for an amount greater than par value, the excess should be credited to

a$.$ Cash.

b$.$ Retained Earnings.

c$.$ Paid$-$in Capital in Excess of Par.

d$.$ Legal Capital.

$23.$ If stock is issued for a noncash asset, the asset should be recorded on the books of the corporation at

a$.$ fair value.

b$.$ cost$.$

c$.$ zero.

d$.$ a nominal amount.

$24.$ Jackson Company is a publicly held corporation whose $$1$ par value stock is actively traded at $$64$ per share. The company issued $3,000$ shares of stock to acquire land recently advertised at $$200,000.$ When recording this transaction, Barton Company will

a$.$ debit Land for $$200,000.$

b$.$ credit Common Stock for $$192,000.$

c$.$ debit Land for $$192,000.$

d$.$ credit Paid$-$In Capital in Excess of Par for $$196,000.$

$25.$ Sunshine Company issued $4,000$ shares of its $$5$ par value common stock in payment of its attorney's bill of $$80,000.$ The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting

a$.$ Legal Expense for $$20,000.$

b$.$ Legal Expense for $$80,000.$

c$.$ Organization Expense for $$20,000.$

d$.$ Organization Expense for $$80,000.$

$26.$ In the financial statements, organization costs appears

a$.$ immediately below Retained Earnings in the stockholders' equity section.

b$.$ in the income statement.

c$.$ as part of paid$-$in capital in the stockholders' equity section.

d$.$ as an intangible asset.

$27.$ Which of the following represents the largest number of common shares?

a$.$ Treasury shares

b$.$ Issued shares

c$.$ Outstanding shares

d$.$ Authorized shares

$28.$ The contractual interest rate is always stated as a$($n$)$

a$.$ monthly rate

b$.$ daily rate

c$.$ semiannual rate

d$.$ annual rate

$29.$ When authorizing bonds to be issued, the board of directors does not specify the

a$.$ total number of bonds authorized to be sold

b$.$ contractual interest rate

c$.$ selling price

d$.$ total face value of the bonds

$30.$ Secured bonds are bonds that

a$.$ are in the possession of a bank

b$.$ are registered in the name of the owner

c$.$ have specific assets of the issuer pledged as collateral

d$.$ have detachable interest coupons

$31.$ A legal document which summarizes the rights and privileges of bondholders as well as the obligations and commitments of the issuing company is called

a$.$ a bond indenture

b$.$ a bond debenture

c$.$ trading on the equity

d$.$ a term bond

$32.$ Bonds that are secured by real estate are termed

a$.$ mortgage bonds

b$.$ serial bonds

c$.$ debentures

d$.$ bearer bonds

$33.$ Bonds issued against the general credit of the borrower are called

a$.$ callable bonds

b$.$ debenture bonds

c$.$ mortgage bonds

d$.$ sinking fund bonds

$34.$ Bonds that may be exchanged for common stock at the option of the bondholders are called

a$.$ options

b$.$ stock bonds

c$.$ convertible bonds

d$.$ callable bonds

$35.$ Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

a$.$ callable bonds

b$.$ early retirement bonds

c$.$ options.

d$.$ debentures

$36.$ Bonds that have specific assets of the issuer pledged as collateral are

a$.$ secured bonds

b$.$ callable bonds

c$.$ convertible bonds

d$.$ debenture bonds

$37.$ The statement of cash flows

a$.$ must be prepared on a daily basis

b$.$ summarizes the operating, financing, and investing activities of an entity

c$.$ is another name for the income statement

d$.$ is a special section of the income statement

$38.$ Which one of the following items is not generally used in preparing a statement of cash flows?

a$.$ Adjusted trial balance

b$.$ Comparative balance sheets

c$.$ Current income statement

d$.$ Additional information

$39.$ The statement of cash flows will not report the

a$.$ amount of checks outstanding at the end of the period

b$.$ sources of cash in the current period

c$.$ uses of cash in the current period

d$.$ change in the cash balance for the current period

$40.$ Lending money and collecting the loans are

a$.$ operating activities

b$.$ investing activities

c$.$ financing activities

d$.$ Non$-$cash investing and financing activities