I need help with the last 5 questions if possible. Thanks.

ACCT 311 6980 - Quiz 1 Part 1, 16 questions, 5 points each 1. Rabb Co. records its purchases at gross amounts but wishes to change to recording purchases net of purchase discounts. Discounts available on purchases recorded from October 1, year 1, to September 30, year 2, totaled $2,000. Of this amount, $200 is still available in the accounts payable balance. The balances in Rabb's accounts as of and for the year ended September 30, year 2, before conversion are Purchases $100,000 Purchase discounts taken Accounts payable 800 30,000 What is Rabb's accounts payable balance as of September 30, year 2, after the conversion? a. $29,800 b. $29,200 c. $28,800 d. $28,200 2. In its year 2 financial statements, Cris Co. reported interest expense of $85,000 in its income statement and cash paid for interest of $68,000 in its cash flow statement. There was no prepaid interest or interest capitalization either at the beginning or end of year 2. Accrued interest at December 31, year 1, was $15,000. What amount should Cris report as accrued interest payable in its December 31, year 2 balance sheet? a. $2,000 b. $15,000 c. $17,000 d. $32,000 3. A retail store received cash and issued gift certificates that are redeemable in merchandise. The gift certificates lapse one year after they are issued. How would the deferred revenue account be affected by each of the following transactions? Redemption of certificates Lapse of certificates a. Decrease No effect b. Decrease Decrease c. No effect No effect d. No effect Decrease 4. In June year 2, Northan Retailers sold refundable merchandise coupons. Northan received $10 for each coupon redeemable from July 1 to December 31, year 2, for merchandise with a retail price of $11. At June 30, year 2, how should Northan report these coupon transactions? a. Unearned revenues at the merchandise's retail price. b. Unearned revenues at the cash received amount. c. Revenues at the merchandise's retail price. d. Revenues at the cash received amount. 5. On February 5, year 3, an employee filed a $2,000,000 lawsuit against Steel Co. for damages suffered when one of Steel's plants exploded on December 29, year 2. Steel's legal counsel expects the company will lose the lawsuit and estimates the loss to be between $500,000 and $1,000,000. The employee has offered to settle the lawsuit out of court for $900,000, but Steel will not agree to the settlement. In its December 31, year 2 balance sheet, what amount should Steel report as liability from lawsuit? a. $2,000,000 b. $1,000,000 c. $900,000 d. $500,000 6. Management can estimate the amount of loss that will occur if a foreign government expropriates some company assets. If expropriation is reasonably possible, a loss contingency should be a. Disclosed but not accrued as a liability. b. Disclosed and accrued as a liability. c. Accrued as a liability but not disclosed. d. Neither accrued as a liability nor disclosed. 7. In year 2, a contract dispute between Dollis Co. and Brooks Co. was submitted to binding arbitration. In year 2, each party's attorney indicated privately that the probable award in Dollis' favor could be reasonably estimated. In year 3, the arbitrator decided in favor of Dollis. When should Dollis and Brooks recognize their respective gain and loss? Dollis' gain Brooks' loss a. Year 2 Year 2 b. Year 2 Year 3 c. Year 3 Year 2 d. Year 3 Year 3 8. Mill Co.'s trial balance included the following account balances at December 31, year 2: Accounts payable Bonds payable, due year 3 $15,000 25,000 Discount on bonds payable, due year 3 3,000 Dividends payable 1/31/Y3 8,000 Notes payable, due year 4 20,000 What amount should be included in the current liability section of Mill's December 31, year 2 balance sheet? a. $45,000 b. $51,000 c. $65,000 d. $78,000 9. East Co. issued 1,000 shares of its $5 par common stock to Howe as compensation for 1,000 hours of legal services performed. Howe usually bills $160 per hour for legal services. On the date of issuance, the stock was trading on a public exchange at $140 per share. By what amount should the additional paidin capital account increase as a result of this transaction? a. $135,000 b. $140,000 c. $155,000 d. $160,000 10. On March 1, year 1, Rya Corp. issued 1,000 shares of its $20 par value common stock and 2,000 shares of its $20 par value convertible preferred stock for a total of $80,000. At this date, Rya's common stock was selling for $36 per share, and the convertible preferred stock was selling for $27 per share. What amount of the proceeds should be allocated to Rya's convertible preferred stock? a. $60,000 b. $54,000 c. $48,000 d. $44,000 11. Cyan Corp. issued 20,000 shares of $5 par common stock at $10 per share. On December 31, year 1, Cyan's retained earnings were $300,000. In March year 2, Cyan reacquired 5,000 shares of its common stock at $20 per share. In June year 2, Cyan sold 1,000 of these shares to its corporate officers for $25 per share. Cyan uses the cost method to record treasury stock. Net income for the year ended December 31, year 2, was $60,000. At December 31, year 2, what amount should Cyan report as retained earnings? a. $360,000 b. $365,000 c. $375,000 d. $380,000 12. In year 1, Fogg, Inc. issued $10 par value common stock for $25 per share. No other common stock transactions occurred until March 31, year 3, when Fogg acquired some of the issued shares for $20 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement? a. Year 3 net income is decreased. b. Year 3 net income is increased. c. Additional paid-in capital is decreased. d. Retained earnings is increased. 13. A company declared a cash dividend on its common stock on December 15, year 1, payable on January 12, year 2. How would this dividend affect stockholders' equity on the following dates? December 15, Year 1 December 31, Year 1 January 12, Year 2 a. b. c. d. Decrease Decrease No effect No effect No effect No effect Decrease No effect Decrease No effect No effect Decrease 14. How would a stock split in which the par value per share decreases in proportion to the number of additional shares issued affect each of the following? Additional paid-in capital Retained earnings a. b. c. d. Increase No effect No effect Increase No effect No effect Decrease Decrease 15. The following information pertains to Jet Corp.'s outstanding stock for year 1: Common stock, $5 par value Shares outstanding, 1/1/Y1 2-for-1 stock split, 4/1/Y1 Shares issued, 7/1/Y1 Preferred stock, $10 par value, 5% 20,000 20,000 10,000 cumulative Shares outstanding, 1/1/Y1 4,000 What are the number of shares Jet should use to calculate year 1 basic earnings per share? a. 40,000 b. 45,000 c. 50,000 d. 54,000 16. Peters Corp.'s capital structure was as follows: December 31 Year 1 Year 2 Outstanding shares of stock: Common Convertible preferred 110,000 10,000 110,000 10,000 During year 2, Peters paid dividends of $3.00 per share on its preferred stock. The preferred shares are convertible into 20,000 shares of common stock and are considered common stock equivalents. Net income for year 2 was $850,000. Assume that the income tax rate is 30%. The diluted earnings per share for year 2 is a. $6.31 b. $6.54 c. $7.08 d. $7.45 Part 2, 2 questions, 10 points each Please select two of the following three questions. Note that all questions have multiple parts. 1. Prepare journal entries to record the following transactions related to long-term bonds of Quirk Co. (Indent credit account title and amount. If no entry is required, note "No Entry\". Round answers to 0 decimal places, e.g. 5,275.) a. On April 1, 2013, Quirk issued $800,000, 9% bonds for $860,589 including accrued interest. Interest is payable annually on January 1, and the bonds mature on January 1, 2023. b. On July 1, 2015 Quirk retired $240,000 of the bonds at 102 plus accrued interest. Quirk uses straight-line amortization. 2. On June 1, 2013, Everly Bottle Company sold $2,000,000 in long-term bonds for $1,754,200. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. (Indent credit account title and amount. If no entry is required, note "No Entry\". Round answers to 0 decimal places, e.g. 5,275.) a. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. b. Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2015. 3. For each of the unrelated transactions described below, present the entry required to record the bond transactions. (Indent credit account title and amount. If no entry is required, note "No Entry\". Round answers to 0 decimal places, e.g. 5,275.) a. On August 1, 2015, Lane Corporation called its 10% convertible bonds for conversion. The $6,500,000 par bonds were converted into 260,000 shares of $20 par common stock. On August 1, there was $650,000 of unamortized premium applicable to the bonds. The fair value of the common stock was $20 per share. Ignore all interest payments. b. Packard, Inc. decides to issue convertible bonds instead of common stock. The company issues 10% convertible bonds, par $2,500,000, at 97. The investment banker indicates that if the bonds had not been convertible they would have sold at 94. c. Gomez Company issues $7,800,000 of bonds with a coupon rate of 8%. To help the sale, detachable stock warrants are issued at the rate of ten warrants for each $1,000 bond sold. It is estimated that the value of the bonds without the warrants is $7,700,000 and the value of the warrants is $480,000. The bonds with the warrants sold at 101