4) The interest charged on a $150,000 note payable, at the rate of 5%, on a 10-month note would be *

a- $6,250

b- $2,500

c- $1,000

d- $7,500

5) Beng Company has 30,000 shares of $1 par common stock issued and outstanding. The company also has 5,000 shares of $100 par 5% noncumulative preferred stock outstanding. The company did not pay the preferred dividends in 2019. On December 1, 2020 the companys board of directors declared that $250,000 will be paid as dividend on January 17, 2021. What amount of dividends would common stockholders earn? *

a- $225,000

b- $200,000

c- $150,000

d- $125,000

6) On June 1, 2019, Lilo Inc. announces a 3:1 stock split on its 30,000 shares of $6 par value common stock outstanding. The memo announcing the split will include information about the stocks par value which will be: *

a- $2

b- $18

c- 10,000 shares

d- 90,000 shares

7) A company receives $1,000 including 6% sales tax. The journal entry to record the sale would include a *

a- Credit to Sales Revenue for $1,000

b- Debit to Sales Revenue for $1,000

c- Debit to Sales Revenue for $943.3

d- Credit to Sales revenue for $943.3