25. Mountain People's Coop carries herbal tea for sale on consignment from Green Heron Company. Which company should report the inventory of unsold tea on its balance sheet? A. Neither company B. Green Heron Company C. Mountain People's Coop D. Both companies 26. Amortizing a bond discount will that when the bond matures the carrying value willthe face v the discount balance and the carrying value of the bond so A. decrease; decrease; equal B. increase; decrease; be greater than C. decrease; increase; be greater than D. decrease; increase; equal 27. Recording the estimate of bad debt expense: A. increases net income. B. increases assets. C. is done at the same time the credit sale is recorded, D. follows the expense recognition Cmatching") principle. 28. Jay-Cee Corporation had 20,000 shares of $4 par value common stock outstanding on January 1. On January 20, the company purchased 2,000 shares of its stock for $16 per share. On July 3, the company reissued 1,000 of the shares at $20 per share. Assume the company paid a dividend of $5 per share on August 3. What is the total amount of the dividends that would be paid to the common stockholders? A. $76,000 B. $100,000 C. $90,000 D. $95,000 An adual.nent lo. ac44 ug dig acii..unt ufsalaries and wages owed wao resorded on iesamler 31,. These alaries und wages weze paid on e following lanuary . The sntey on lamuany5 woald tnclude a dabi to A Cash and Credit to Nalaries and Wayes Ens t Salacies nd Wages Payable and Credit to Cash C Salacios and Wages Eapense and Credit to Cach D Cash and Credit to Nalaies and Wages Payable la sarnacua Curupany issued Syear, 7% bonds with a face valus of Si 00,000 The 'narker ,ate "r the line of sau uve was 0.1% Nainaon (ounpany (eceived Siai,i 7 for the sale of the bonda Using ile snestive interest uothod detequine the amount of nterest expenss thai should be recorded fur the fizst asmianouslinteres B So, 50000 40 At the eod of Marcls, lonton Co. paid $1,800 for a Gomonth insurance policy to eover the months April hrough Sopiomber. What is the journal onicy to record the payment A. Credit prepaid insurance $1,800; debit cash $1,800 Cvedit cash S 1,800, debit insurance expense $1,800 C: Bebit insurance expense $1.800; debit oash $1,800 D. Credit cash $1.800; debit prepaid insurance si,soo 41. Connor Coinpany borrow. $185,000 cash on November 1,2013, by signing a 120 day, 8% note. What is the total amount of ivterest expense that Conner will reeognize for this note? A 80, no intoreat expense is recognized C $14,848 $4,949
