1. Refer to the following list of liability balances at December 31, 2015:

Accounts Payable $17,000

Employee Health Insurance Payable $1,350

Employee Income Tax Payable $1,300

Estimated Warranty Payable $600

Long-Term Notes Payable (Due 2019) $36,000

FICA-OASDI Taxes Payable $660

Sales Tax Payable $1,270

Mortgage Payable (Due 2020) $16,000

Bonds Payable (Due 2021) $57,000

Current Portion of Long- Term Notes Payable $5,500

What is the total amount of long- term liabilities?

a)$36,000

b) $52,000

c) $109,000

d) $93,000

2. Rodriguez Inc. had the following balances and transactions during 2015:

Beginning Merchandise inventory as of January 1, 2015 (100 units at $80)

March 10 (sold 50 units)

June 10 ( Purchased 200 units at $82)

October 30 ( Sold 150 unites)

What would the Ending Merchandise inventory amount be as reported on the balance sheet at December 31, 2015 if the perpetual first-in, first-out costing method is used?

a) $8,200

b) $4,000

c) $16,400

d) $8,000

3. Using the present value tables, compute the present value of $32,000 discounted back 6 periods at 8%.

a) $22,720

b) $17,600

c) $25,493

d) $20,160

4. On December 2, 2015, Ewell Inc, purchases a piece of land from the original owner. In payment for the land, Ewell Inc. issues 6,000 shares of common stock with $1.10 par value. The land has been appraised at a market value of $410,000. Which of the following is included in the journal entry to record this transaction?

a) credit common stock- $1.10 par value for $410,000

b) credit common stock- $1.10 par value for $6,600 and credit paid - in capital in excess of par - common $403,400

c) debit cash $410,000

d) debit common stock - $1.10 Par Value for $6,600 and debit Paid - In capital in excess of Par - common $403,400

5. Saturn Corporation has 16,000 shard of 14%, $77 par noncumulative preferred stock outstanding and 26,000 shares of no-par common stock outstanding. At the end of the current year, the corporation declares a dividend of $184,000. How is the dividend allocated between preferred and common stockholders?

a) the dividend is allocated $86,042 to preferred stockholders and $97,958 to common stockholders.

b)the dividend is allocated $70,095 to preferred stockholders and $113,905 to common stockholders

c)the dividend is allocated $172,480 to preferred stockholders and $11,520 to common stockholders.

d)the dividend is allocated $7,573 to preferred stockholders and $176,427 to common stockholders.

6. A company can show a higher net income in its income statement by ____________.

a) understanding its ending inventory

b) overstating its cost of goods available for sale

c) understating its sales revenue

d) overstating it ending inventory