Wendell Company Provided the Following Pertaining to Its Accounting Year

question 122

Multiple Choice

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2016: • Common stock with a $10,000 par value was sold for $50,000 cash
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid
• Net income was $70,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value
• Treasury stock repurchased in a prior year for $9,000 was resold for $7,000 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price
What is the amount of the increase in Wendell's retained earnings for the year ended December 31, 2016?

• A)$32,000.
• B)$25,000.
• C)$29,000.
• D)$27,000.

Understand how to compute the yearly interest earned on bonds.

Grasp when and why a company might call callable bonds.

Calculate the stock value conversion rate for convertible bonds.

Determine the concept of buying bonds at a premium or a discount.

---

Definitions:

Adjectives

Words that describe or modify another person or thing in the sentence.

Adverbs

Words that modify verbs, adjectives, or other adverbs, often used to indicate manner, place, time, frequency, degree, level of certainty, etc.

Months of Age

A unit of measurement to describe the age of a person, or animal, especially used for infants and young children.

Talk

The act of engaging in verbal communication to express thoughts, ideas, or feelings.