17. On December 31, 2016, L Inc. had a $1,600,000 note payable outstanding, due July 31, 2017. L borrowed the money to finance construction of a new plant. L planned to refinance the note by issuing long-term bonds. Because L temporarily had excess cash, it prepaid $510,000 of the note on January 23, 2017. In February 2017, L completed a $3,100,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2017. On March 13, 2017, L issued its 2016 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2016, balance sheet?

a) $0

b) $510,000

c) $1,600,000

d) $1,090,000

20.

In the current year, Hanna Company reported quality-assurance warranty expense of $194,000 and the warranty liability account increased by $27,000. What were warranty expenditures during the year?

a) $167,000

b) $0

c) $221,000

d) $194,000

21.

During the year, L&M Leather Goods sold 1,020,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $3.80 cash rebate. L&M estimates that 78% of the coupons will be redeemed, even though only 503,000 coupons had been processed during the year. At December 31, L&M should report a liability for unredeemed coupons of:

a) $1,911,400

b) $795,600

c) $3,023,280

d) $1,111,880