Which of the following statement is TRUE concerning the CMA?

Which of the following statement is TRUE concerning the CMA?
A. To earn the CMA, an examination must be passed.
B. Experience in the accounting field is not necessary to earn the CMA.
C. Compliance with the Institute of Management Accountants’ Statement of Ethical Professional Practice is not necessary to earn the CMA.
D. Both B and C above

Answer
Both B and C above.

Polzin Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

Polzin Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first year of operations, the company had the following events and transactions pertaining to its preferred stock.

Feb. 1		Issued 20,000 shares for cash at $53 per share.
July 1		Issued 12,000 shares for cash at $57 per share.

Journalize the transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) Post to the stockholders' equity accounts. (If answer is zero, please enter 0. Do not leave any fields blank.)

Correct.

Journalize the transactions. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Date	Account/Description	Debit	Credit
Feb. 1	Cash	1060000
	Preferred stock		1000000
	Paid-in cap. in excess of par value-Pref. stock		60000
July 1	Cash	684000
	Preferred stock		600000
	Paid-in cap. in excess of par value-Pref. stock		84000

	Correct.

Post to the stockholders' equity accounts. (If answer is zero, please enter 0. Do not leave any fields blank.)

Preferred Stock
Date		Explanation	Ref.	Debit	Credit	Balance
Feb.	1			0	1000000	1000000
July	1			0	600000	1600000

Paid-in Capital in Excess of Par Value-Preferred Stock
Date		Explanation	Ref.	Debit	Credit	Balance
Feb.	1			0	60000	60000
July	1			0	84000	144000

On October 1, Milton Company sold merchandise in the amount of $5,200 to Larry Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,600. Milton uses the perpetual inventory system. On October 4, Larry returns some of the merchandise. The selling price of the merchandise is $1,000 and the cost of the merchandise returned is $330. The entry or entries that Milton must make on October 4 is: A. Sales returns and allowances 1,000 Accounts receivable 1,000 Merchandise inventory 330 Cost of goods sold 330 B. Accounts receivable 1,000 Sales returns and allowances 1,000 Cost of goods sold 330 Merchandise inventory 330 C. Sales returns and allowances 330 Accounts receivable 330 D. Sales returns and allowances 1,000 Accounts receivable 1,000 E. Accounts receivable 1,000 Sales returns and allowances 1,000 A above. B above. C above. D above. E above. Answer is A. Sales returns and allowances 1,000 Accounts receivable 1,000 Merchandise inventory 330 Cost of goods sold 330

On October 1, Milton Company sold merchandise in the amount of $5,200 to Larry Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,600. Milton uses the perpetual inventory system. On October 4, Larry returns some of the merchandise. The selling price of the merchandise is $1,000 and the cost of the merchandise returned is $330. The entry or entries that Milton must make on October 4 is: A.  Sales returns and allowances 1,000          Accounts receivable 1,000      Merchandise inventory 330          Cost of goods sold 330 B.  Accounts receivable 1,000          Sales returns and allowances 1,000      Cost of goods sold 330          Merchandise inventory 330 C.  Sales returns and allowances 330          Accounts receivable 330 D.  Sales returns and allowances 1,000          Accounts receivable 1,000 E.  Accounts receivable 1,000          Sales returns and allowances 1,000       A above.       B above.       C above.       D above.       E above.

Answer is

A.  Sales returns and allowances	1,000
Accounts receivable		1,000
Merchandise inventory	330
Cost of goods sold		330

The credit terms 11/12, n/30 are interpreted as: 30% discount if paid within 11 days 12% cash discount if the amount is paid within 11 days, with balance due in 30 days. 11% cash discount if the amount is paid within 12 days, with the balance due in 30 days. 30% discount if paid within 12 days. 11% discount if paid within 30 days. Answer is 11% cash discount if the amount is paid within 12 days, with the balance due in 30 days.

The credit terms 11/12, n/30 are interpreted as:

      30% discount if paid within 11 days
      12% cash discount if the amount is paid within 11 days, with balance due in 30 days.
      11% cash discount if the amount is paid within 12 days, with the balance due in 30 days.
      30% discount if paid within 12 days.
      11% discount if paid within 30 days.
Answer is
11% cash discount if the amount is paid within 12 days, with the balance due in 30 days.