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1)Randal Inc

Accounting

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1)Randal Inc. has authorized capital to issue 3.000 new common stocks at $5 par value. Ms. Marianne Randal pays $10,000 in exchange for 1500 common stocks. Which of the following accounting is correct?

Cash debit $10,000 and Capital Stock credit $10,000

Cash debit $10,000 and Unpaid Capital credit $10,000

Cash debit $10,000 and Capital Stock credit $7,500; Additional Paid in Capital credit $2,500

Cash debit $10,000 and Capital Stock credit $2,500 and Additional Paid in Capital $7,500

2)

Marvel Corp. buys an automobile at $18,000 list price and $2,000 customs duty. Marvel estimates to use it in next five years, after five years the vehicle's value estimated as $4,000. According to straight line method the vehicle's depreciation expense per year will be: *

$3,600

$5,000

$3,200

$4,000

3)Name THREE transactions that improves cash flow but does not increase profit.

4)

Gogol Inc. buys a jet for $5,000.000 borrowing a loan from Chase Manhattan Bank. Which of the following is correct journal entry for Gogol? *

Notes Payable debit $5M and Vehicles credit $5M.

Vehicles debit $5M and Notes Payable credit $5M.

Equipments debit $5M and Notes Payable credit $5M.

Vehicles debit $5M and Accounts Payable credit $5M.

5)

Thinkerbell Corp. reports the following information related to its most recent year(2020). The company has sales of $100 millions and the cost of goods sold and other expenses totaled $65 millions. Corporate income tax rate is 25% and legal reserves should be calculated as 5%. What's the net income of the year for Thinkerbell? *

$25,000,000

$24,937,500

$1,312,500

$26,250,000

6)

At the beginning of 2015 company buys a truck at $150,000 with estimated useful life is five years. However company sells it at $80,000 at the beginning of 2017 due to urgent cash need. Assume that company uses straight line method. what is the gain or loss from the sale of the truck? *

$20,000 gain

$70,000 loss

$10,000 gain

$10,000 loss