2. Financial Accounting. Please provide complete, correct and mathematical solution done on computer or by hand. Please, emphasis on correct solution. This is all the information provided. Thank you very much.

6. What was the impact on WorldCom's [real) 2001 financial statements when they fraudulently recorded certain everyday expenditures as an asset? a) Net income was understated. b) Net income was overstated. c) Assets were understated. d) Liabilities were understated. 7. Phillip Corporation had sales of $10,000 and depreciation expense of S6,000 for book purposes and S7.000 for tax purposes. They have no other expenses. Their tax rate is 40%. How much income tax expense should they report on their income statement? a) $4,000 b) $3,000 c) $1,600 d) $1,200 8. Photoworks manufactures and markets cameras with a one year warranty against defects and will refund the customer's purchase price. At the time the cameras are sold, estimated product warranty costs are accrued. When the cameras are repaired or replaced under the warranty, the entry made by Photoworks would include debit b) a debit to warranty expense. c) a to liability. d) a credit to estimated warranty 9. Alfred Company has 10,000 common shares issued with a par value of S2 per share. There are 500 shares held in treasury. If they declare and issue a 15% stock dividend when the market price per share is sz5 retained earnings will decrease by a) $3,000 b) $2,850 c) S35,625 d) S36,000 10. Frederick Corp. has 100,000 shares issued and outstanding $3 par value common stock. On December 1 of 2013, they declare and issue a 40% stock dividend when the market price of the stock is $50 per share Frederick Corp. would record a a) debit to retained earnings for $2 million. b) debit to common stock for $2 million. c) credit to additional paid-in capital for $120,000. d) credit to common stock for $120,000. l 1. Macrosoft Corporation used "cookie jar reserves" artificially inflate the balance in the estimated warrant liability by $50,000 for the 2012 fiscal year. As a to less in the result ofthat, they were able to put s20,000 estimated warranty liability in the 2013 fiscal year. The impact on net income was to a) overstate net income in 2012 by $50,000 b) understate net income in 2013 by $50,000 c) understate net income in 2013 by $20,000 d) overstate net income in 2013 by S20,000