1)<br/>On April 1, 20X6, Ratchford Industries issued $500,000 of 12%,

10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and April 1. The entry to record issuance of the bonds includes:
Question 20 options:

A)
a credit to Bonds Payable of $503,000.

B)
All of the above.

C)
a debit to Cash of $503,000.

D)
None of these.

E)
a debit to Premium on Bonds Payable of $15,000.

2)
If one business acquires another for $1,000,000, and the acquired business has assets with a fair value $800,000, and liabilities with a fair value of $100,000, how much is the goodwill?
Question 21 options:

A)
$0.

B)
$300,000.

C)
$200,000.

D)
None of these.

E)
$100,000.

3)
Normally, the payment of a previously declared dividend will result in:
Question 22 options:

A)
All of the above.

B)
a decrease in working capital.

C)
a decrease in stockholders’ equity.

D)
a decrease in liabilities.

E)
None of these.

4)
Linville has 100,000 shares of common stock outstanding. On April 15, the board declared a $.30 dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 15. The proper journal entry for Linville on May 15 does include:
Question 23 options:

A)
a credit to Dividends Payable for $30,000.

B)
None of these.

C)
a credit to Cash for $30,000.

D)
a debit to Dividends for $30,000.

E)
Both A and B, above.