8 . On the Balance Sheet the current portion of long-term debt should a . be paid immediately . b . be reclassified as a current liability . c . be classified as a long-term liability . d . not be separated from the longterm portion of debt .
9 . Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called a . options . b . early retirement bonds . c . callable bonds . d . debentures .
10 . The Muffin Company issued a five-year interest-bearing note payable for $ 50,000 on January 1 , 2005 . Each January the company is required to pay $ 10,000 on the note . How will this note be reported on the December 31 , 2006 , balance sheet ? a . Long-term Debt , $ 50,000 b . Long-term Debt , $ 40,000 c . Long-term Debt , $ 30,000 ; Long-term Debt due within one year , $ 10,000 d . Long-term Debt of $ 40,000 ; Long-term Debt due within one year , $ 10,000
11 . Toran Manufacturing declared an 10 % stock dividend when it had 150,000 shares of $ 5 par value common stock outstanding . The market price per common share was $ 12 per share when the dividend was declared . The entry to record this dividend declaration includes a credit to a . Retained Earnings of $ 180,000 . b . Paid-in Capital in Excess of Par for $ 105,000 . c . Common Stock for $ 180,000 . d . Retained Earnings for $ 75,000 .
12 . Richer Company paid $ 21,000 to buy 4,000 shares of its $ 6 par value common stock for the treasury . The stock was originally sold for $ 25,000 . The entry to record the purchase includes a a . debit to Treasury Stock for $ 21,000 . b . credit to Treasury Stock for $ 25,000 .