1. On December 11, 2019, the Company borrowed $42,000 and signed a 60-day, 5.5% note payable. The accrued interest payable on December 31, 2019 is:

A. 120.25 . B. $126.58 . C. $129.60 . D. $136.00 .

2. The entry to allocate the above $120,000 partnership loss is:

A.

Thomas, Capital..$ 20,000

Dotchin, Capital..$100,000

Income Summary.$120,000

B.

Thomas, Capital..$80,000

Dotchin, Capital..$ 40,000

Income Summary.$120,000

C.

Thomas, Capital..$60,000

Dotchin, Capital..$60,000

Income Summary.$120,000

3. Oliver, Peter, and Wendell capital balances are $30,000, $22,000, and $15,000, respectively, on July 31, 2020. They share profit and losses in the ratio of 3:2:1. Peter retires on July 31, 2020 and has agreed to accept $15,000 for his share of the partnership. The entry to record Peter's retirement is as follows:

A.

Peter, Capital..$22,000

Cash$15,000

Oliver, Capital.$ 5,250

Wendell, Capital..$ 1,750

. B.

Peter, Capital..$22,000

Cash$15,000

Oliver, Capital.$ 1,750

Wendell, Capital..$ 5,250

. C.

Peter, Capital..$22,000

Cash ...$15,000

Oliver, Capital.$ 3,500

Wendell, Capital..$ 3,500

4. Pearson Inc. had a credit balance in Retained Earnings on December 31, 2018, of $48,000. During 2019, Pearson Inc. recorded profit of $146,000 and declared and paid dividends of $47,000.During 2020, the company recorded a loss of $15,000. No dividends were declared or paid in 2020.The balance in Retained Earnings at December 31, 2020 is:

A. $226,000 Credit . B. $132,000 Debit .

C. $162,000 Credit . D. $132,000 Credit .

E. None of these answers is correct.

5Market Adventures had 186,000 shares outstanding on January 1, 2020 and issued an additional 24,000 shares during the year. The common shareholders' equity was $5,841,000 at the end of the year.The average number of shares outstanding and book value per common share is:

A. 198,000 shares outstanding with a $29.50 book value .

B. 210,000 shares outstanding with a $27.81 book value .

C. 198,000 shares outstanding with a $27.81 book value .

D. None of the above .