Jerry received a check from McGregory Corporation as a dividend on his preferred shares. Two days later, one of the corporate directors called him and said he would have to return the check since it was erroneously declared and the company would not be able to pay its day-to-day expenses. Jerry would:
a. have to return the check because the company would be insolvent.
b. have to return the check since it was erroneously declared.
c. not have to return the check because Jerry acted innocently.
d. not have to return the check because the board acted in good faith.
a
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Preston Sales, Inc. has gross salaries and wages for March of $45,000. Provide the journal entry to record salaries and wages expense and payroll withholdings. (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%.) Salaries and wages to date are under the OASDI limit. Assume no federal or state income taxes are due. Salaries and wages will be paid at a later date. Omit explanation.
What will be an ideal response?
Banister Company wishes to issue $600,000 of 10-year, 7% bonds, with interest paid annually at the end of the year. The market rate of interest is currently 5%. What information is needed in order to determine the issue price of the bond?
A) The market rate of interest, the stated rate of interest, the bond rating, and the bond life. B) The face value of the bonds, the stated rate of interest, the market rate of interest, and the bond life. C) The life of the bonds, the market rate of interest, the bond rating, and the face value of the bonds. D) The face value of the bonds, the market rate of interest, the purpose of the issue, and the bond life.
Establishing a sole proprietorship generally requires the owner to get a charter from the state government.
Answer the following statement true (T) or false (F)
An intoxicated person may avoid a contract on becoming sober
a. only if the other party had reason to know that the person was drunk and did not understand the consequences of the transaction. b. under any circumstances. c. only if he or she was slightly intoxicated. d. only if the contract is one for necessaries.