23. Panther Co. had a quality-assurance warranty liability of $359,000 at the beginning of 2018 and $308,000 at the end of 2018. Warranty expense is based on 3% of sales, which were $44 million for the year. What were the warranty expenditures for 2018?

MULTIPLE CHOICE

a. $1,320,000

b. $1,269,000

c. $0

d. $1,371,000

29. On February 1, 2017, Pat Weaver Inc. (PWI) issued 10%, $1,000,000 bonds for $1,116,000. PWI retired all of these bonds on January 1, 2018, at 102. Unamortized bond premium on that date was $92,800. How much gain or loss should be recognized on this bond retirement?

MULTIPLE CHOICE

a. $0 gain

b. $111,800 gain

c. $72,800 gain

d. $96,000 gain

30. On September 1, 2018, Red Co., issued $48 million of its 10% bonds at face value. The bonds are dated June 1, 2018, and mature on May 30, 2028. Interest is payable semiannually on June 1 and December 1. At the time of issuance, Red would receive cash proceeds that would include accrued interest of:

MULTIPLE CHOICE

a. zero

b. $600,000

c. $1,200,000

d. $4,800,000

31. Roberto Corporation was organized on January 1, 2018. The firm was authorized to issue 94,000 shares of $5 par common stock. During 2018, Roberto had the following transactions relating to shareholders' equity:

Issued 9,600 shares of common stock at $5.90 per share. Issued 19,600 shares of common stock at $8.60 per share. Reported a net income of $93,000. Paid dividends of $52,000. Purchased 2,800 shares of treasury stock at $10.60 (part of the 19,600 shares issued at $8.60). What is total shareholders' equity at the end of 2018?

MULTIPLE CHOICE

a. $239,320

b. $236,520

c. $288,520

d. $258,840

32. The shareholders' equity of Green Corporation includes $408,000 of $1 par common stock and $590,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $69,000 in 2018 after paying $39,000 cash dividends in each of 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018?

MULTIPLE CHOICE

a. $43,600

b. $27,700

c. $23,100

d. $45,900

33. On October 1, 2018, Chief Corporation declared and issued a 12% stock dividend. Before this date, Chief had 89,000 shares of $5 par common stock outstanding. The market value of Chief Corporation on the date of declaration was $10 per share. As a result of this dividend, Chief's retained earnings will:

MULTIPLE CHOICE

a. not change

b. decrease by $106,800

c. decrease by $107,800

d. increase by $106,800