1) Menacing Costumes has a patent that it purchased on January 1 for $9,400 (assume a $500 residual value). The patent has 4 years of useful life left, but 7 years of legal life left.Record any December 31 adjusting entry needed for amortization.

2) Which contingent lawsuit situation wouldnotneed to berecorded nor disclosed?

Question options:

All of the other answers would need to be either recorded or disclosed

A lawsuit that is probable to lose for an amount not estimable

A lawsuit that is reasonably possible to win for an estimated amount

A lawsuit that is reasonably possible to lose for an estimated amount

3) A company purchases equipment on October 1, 20X1, that has an estimated 7-year useful life. The company uses thesum-of-years'-digits methodfor depreciation. Whatdepreciation rateshould be used in20X2?

Question options:

6.75/14

6/28

6/14

6.75/28

4) Which account would becreditedif a company "declared" a cash dividend to stockholders?

Question options:

Dividends

Dividends expense

Cash

Dividends payable

5) A company has a $26,000 notes payable and a $43,000 bonds payable both due on April 30, 20X2. The company signed a contract on January, 3, 20X2, to extend the notes payable's due date to March 31, 20X4. The company also signed a contract on December 28, 20X1, to extend the bonds payable's due date to October 31, 20X3. On the December 31, 20X1, balance sheet, how much from these two liabilities should be consideredlong-term liabilities?

Question options:

$26,000

$43,000

$69,000

$0