If prepaid rent for the period is not adjusted, a) assets will be overstated and expenses will be overstated b) assets will be overstated and expenses will be understated. c) assets will be understated and expenses will be overstated d) assets will be understated and expenses will be understated. e) None of the above BITCO has 1,000,000 shares of $4 par common stock authorized and 50,000 shares are issued. The company currently has 3,000 shares of Treasury stock. If the company declares a $1 per share dividend, which of the following would be part of the journal entry to record the transaction? a) Credit $50,000 to dividends payable b) Credit common stock of $50,000. c) Debit treasury stock $47,000. d) Credit cash $50,000. e) Credit dividends payable $47,000. STEPHCO issued 5 year bonds with a $500,000 face value on July 1, 203. The bonds were issued at 98 with a face interest rate 6% when the market rate was 7%. What is the total amount of bond interest expense to be recognized during the life of the bond? a) $140,000 b) $160,000 c) $165,000 d) $185,000 e) None of the above Joe Mama issued ten year bonds with a face value of $300,000 on January 1, 2014. The bonds have a face rate of 6% and were initially issued $304,000. Assuming that any premium or discount is amortized on a straight-line basis, what amount should Joe Mama pay to retire the bonds 8 years after the date of issue, if there is no gain or loss. a) $300,000 b) $302,000 c) $300, 800 d) 296,000 e) $300, 400