In the current year, Hanna Company reported quality-assurance warranty expense of $197,000 and the warranty liability account increased by $12,000. What were warranty expenditures during the year?

$209,000.

$0.

$185,000.

$197,000.

//////////////////////

During the year, L&M Leather Goods sold 1,080,000 reversible belts under a new sales promotional program. Each belt carried one coupon, which entitles the customer to a $4.80 cash rebate. L&M estimates that 77% of the coupons will be redeemed, even though only 507,000 coupons had been processed during the year. At December 31, L&M should report a liability for unredeemed coupons of:

$831,600.

$2,433,600.

$3,991,680.

$1,558,080.

/////////////////

Jane's Donut Co. borrowed $203,000 on January 1, 2016, and signed a two-year note bearing interest at 10%. Interest is payable in full at maturity on January 1, 2018. In connection with this note, Jane's should report interest expense at December 31, 2016, in the amount of:

$20,300.

$0.

$40,600.

$43,036.

//////////////////////

M Corp. has an employee benefit plan for compensated absences that gives each employee 15 paid vacation days. Vacation days can be carried over indefinitely. Employees can elect to receive payment in lieu of vacation days. At December 31, 2016, M's unadjusted balance of liability for compensated absences was $25,200. M estimated that there were 200 total vacation days available at December 31, 2016. M's employees earn an average of $126 per day. In its December 31, 2016, balance sheet, what amount of liability for compensated absences is M required to report?

$25,200.

$0.

$378,000.

$189,000.

//////////////////////

Panther Co. had a quality-assurance warranty liability of $354,000 at the beginning of 2016 and $310,000 at the end of 2016. Warranty expense is based on 4% of sales, which were $45 million for the year. What were the warranty expenditures for 2016?

$1,844,000.

$1,800,000.

$0.

$1,756,000.

///////////////////

Slotnick Chemical received customer deposits on returnable containers in the amount of $350,000 during 2016. Nine percent of the containers were not returned. The deposits are based on the container cost marked up 25%. How much profit did Slotnick realize on the forfeited deposits? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.)

$7,875.

$31,500.

$0.

$6,300.