051-bearing note payable, which accounts change? 43. If interest expense is accrued on an interest-bearing note payable, which a a. Increase to interest expense and increase to interest payable b. Decrease to interest expense and decrease to interest payable. Decrease to interest expense and decrease to notes payable. d. Increase to interest expense and increase to notes payable. 44. Which of the following statements is true about cash dividends? a. Cash dividends reduce total stockholders' equity. b. Cash dividends reduce total paid-in capital C. Cash dividends increase retained earings d. Cash dividends increase total paid-in capital. 45. Lee Corporation financed the purchase of a building worth $500,000 by signing a long-term note payable for $500,000. Where should the transaction be reported on the Statement of Cash Flows? a. Financing Activities section. b. Investing Activities section. c. Operating Activities section. d. Supplemental disclosure in a schedule of significant Noncash Activities 46. Gordon Ford Corporation issues $200,000 (Face Value) in 20-year bonds, dated January 3, 2017, at 102 The bonds have a contractual interest rate of 3% and interest is paid annually on January 3. What is the folal amount to be paid (principal plus interest) on the maturity date on January 3, 2037? a. $210,000 b. $206.000. C. $204,000. d. $200,000 47. Land costing $300,000 was sold for $500,000 cash. On the Statement of Cash Flows, what amount should be reported as a cash inflow from an investing activity from the sale of land? a. $300,000. b. $0. c. $500,000 d. $200,000 Basic Accounting Concepts: Chapters 1 through 5 48. Under the periodic inventory system, cost of goods sold is determined by the Company when: a Merchandise is sold by the Company. b. The Company purchases more merchandise. c. Financial statements are prepared by the Company. d. The Company pays for merchandise. 49. On November 1, 2017, WKU Company, a calendar-year company, borrowed $300.000 on a long-term ng payable. The principal part of the note is due in three annual installments of $100.000 each, with the fi payment to be made on November 1, 2018. In preparing the Balance Sheet as of December 31, 2017 note payable would be classified as follows: a. Current liabilities. $100.000; long-term liabilities, $200.000. b. Current liabilities, $200,000, long-term liabilities, $100,000 C. Current liabilities, $300,000; long-term liabilities. $0. d. Current liabilities So: long-term liabilities, $300,000