20 Assuming a current ratio of 1.0 and an acid-test ratio of 0.80, how will the borrowing of cash by issuing a six- month note payable affect each ratio? 0.7 points Multiple Choice 8 01:51:05 Decrease the current ratio and decrease the acid-test ratio. O No change to the current ratio and increase the acid-test ratio Decrease the current ratio and increase the acid-test ratio. O Increase the current ratio and increase the acid-test ratio. 21 In January, 2018, ABC. sells a gift card for $50 and receives cash. In February, 2018, the customer comes back and spends $20 of their gift card on a water bottle. What would be the appropriate journal entry for the purchase of the water bottle? 3.7 Boints Multiple Choice 8 01:50:47 O Debit Deferred Revenue, $20, credit Sales Revenue, $20. Debit Sales Revenue. $20; credit Deferred Revenue, $20. Debit Deferred Revenue, $50: credit Sales Revenue, $50. No journal entry is necessary JOUBE Submit 23 0.7 points 8 01:50:30 ABC issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Increase in Carrying Value Expense Carrying Value 1/1/2018 $8,640,967 6/30/2018 $300,000 $345,639 $45,639 8,686,606 12/31/2018 300,000 347,464 47,464 8,734,070 6/30/2019 300,000 349.363 49,363 8,783,433 12/31/2019 300,000 351,337 51,337 8,834,770 What is the stated annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six month rate (round to nearest whole percentage, just put in the number with no %) Numeric Response 25 On February 22, ABC acquired 200 shares of its $5 par value common stock for $25 each. On March 15, the company reissued 70 shares for $30 each. What is true of the entry for reissuing the shares? 0.7 points Multiple Choice 8 01:50:05 Debit Treasury Stock $1,750. Credit Additional Paid in Capital $350. Credit Treasury Stock $2,100. Credit Cash $1,750