21.

On December 31, 2018, L Inc. had a $1,700,000 note payable outstanding, due July 31, 2019. 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 $520,000 of the note on January 23, 2019. In February 2019, L completed a $3,200,000 bond offering. L will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2019. On March 13, 2019, L issued its 2018 financial statements. What amount of the note payable should L include in the current liabilities section of its December 31, 2018, balance sheet?

Multiple Choice

$0.

$520,000.

$1,180,000.

$1,700,000.

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22.

As part of a promotion campaign, Funzy Cereal includes one coupon in each issue of various national magazines and offers a toy car in exchange for $1.30 and two coupons. The cars cost Funzy $1.80 each. Experience indicates that 40% of the coupons eventually will be redeemed. During the last month of 2018, the first month of the offer, 11.50 million coupons were distributed and 2.80 million of the coupons were redeemed. What amount should Funzy report as a promotional expense for coupons on its December 31, 2018, income statement?

Multiple Choice

$1,150,000.

$2,300,000.

$575,000.

$ 0.

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23.

At the beginning of 2018, Angel Corporation began offering a two-year warranty on its products. The warranty program was expected to cost Angel 5% of net sales. Net sales made under warranty in 2018 were $198 million. Fifteen percent of the units sold were returned in 2018 and repaired or replaced at a cost of $5.30 million. The amount of warranty expense on Angel's 2018 income statement is:

Multiple Choice

$5.30 million.

$13.30 million.

$29.70 million.

$9.90 million.

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24.

In the current year, Hanna Company reported quality-assurance warranty expense of $199,000 and the warranty liability account increased by $27,000. What were warranty expenditures during the year?

Multiple Choice

$0.

$172,000.

$199,000.

$226,000.

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25.

Panther Co. had a quality-assurance warranty liability of $353,000 at the beginning of 2018 and $315,000 at the end of 2018. Warranty expense is based on 4% of sales, which were $47 million for the year. What were the warranty expenditures for 2018?

Multiple Choice

$0.

$1,918,000.

$1,880,000.

$1,842,000.