1) Kansas Enterprises purchased equipment for $60,000 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $5,000 at the end of five years.

Using the straight-line method, depreciation expense for 2019 and the book value at December 31, 2019 would be:

A) $12,000 and $36,000.

B) $12,000 and $31,000.

C) $11,000 and $33,000.

D) $11,000 and $38,000.

2) California Adventures issues 5,000 shares of 8%, $100 par value preferred stock at the beginning of 2017. All remaining shares are common stock. The company was not able to pay dividends in 2017, but plans to pay dividends of $100,000 in 2018. Assuming the preferred stock is noncumulative, how much of the $100,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2018?

A) $40,000 to preferred stockholders and $60,000 to common stockholders.

B) $80,000 to preferred stockholders and $20,000 to common stockholders.

C) $20,000 to preferred stockholders and $80,000 to common stockholders.

D) $100,000 to preferred stockholders and $0 to common stockholders.

3) On July 5, Harris Company purchased supplies from the hardware store for $600 on account. On July 10, Harris receives a bill from the hardware store as a reminder about the account balance. On July 17, Harris pays the account in full. How does Harris record the transaction on July 17?

Insurance Expense 1750 Prepaid Insurance 1750 Prepaid Insurance 1750 Insurance Expense 1750 Insurance Expense 1750 Prepaid Insurance 2.450 Accounts Payable 4. 200 I Insurance Expense 2.450 Prepaid Insurance 2450 A ) Option A B ) Option B C ) Option D ) Option D