1.INFORMATION FROM THE INCOME STATEMENT:

Sales $660,000

Cost of sales $450,000

Interest expense $5,300

INFORMATION FROM THE BALANCE SHEET:

Accounts receivable decreased by $9,000

Inventory increased by $24,000

Accounts payable decreased by $18,000

Interest payable increased by $1,500

Bond discount decreased by $300

Determine cash paid to suppliers. Show your computations.

2.In the Statement of Cash Flows and in the explanatory notes related to it, are only the transactions that cause an increase or decrease in cash reported? Explain using specific examples.

3.What is meant by the "market rate of interest", the "effective rate" of interest, and the "rate of return" of interest?

4.On September 15, 2019, the Scottie Company Board of Directors declared a 10% dividend on common shares. The shares will be distributed on October 10, 2019, to shareholders. The market price of the stock on the day of the declaration was $ 42 while the market price on the date of distribution was $ 62. The shares have a par value of $ 5 per share and there were 1,000,000 shares outstanding before declaring dividends on shares.

Required:

Prepare the necessary journal entries to record the dividend on the following dates: (Remember to show your computations)

1. Declaration date

2, Registration date

3. Date of distribution