Nationwide Magazine sells 65,000 subscriptions on account in March. The subscription price is $18 each. The subscriptions start in April The journal entry in March would include a: O A. credit to Unearned Subscription Revenue for $1,170,000. OB. debit to Unearned Subscription Revenue for $1,170,000. O c. credit to Cash for $1,170,000. O D. debit to prepaid subscriptions for $1,170,000 Solderman Company issued $460,000,7%, 10-year bonds for $422,800 with a market rate of 9%. The effective interest method of amortization is used and interest is paid annually. The journal entry on the first interest payment date would include a: O A. credit to Cash of $38,052. O B. credit to Cash of $32,200. O c. credit to Interest Expense of $38,052. OD. credit to Interest Expense of $32,200. Wetzel, Inc. has 20,000 shares of cumulative preferred stock outstanding, with annual dividends paid at a rate of $3 per share. Wetzel, Inc. also has 40,000 shares of common stock outstanding. Preferred dividends are in arrears from the prior year and the number of shares remained the same for this year and last year. If Wetzel, Inc. declares a $400,000 dividend in the current year, each outstanding share of common stock would receive: (Round your answer to the nearest cent.) O A. $10.00 OB. $7.00 OC. $8.50 OD. $3.00 You have received a settlement offer from an automobile manufacturer due to mechanical problems with your automobile. The manufacturer will pay you $47,000 in one lump sum five years from now. You can earn 5% on your investments. The present value of $1 for 5 periods at 5% is 0.784. The present value of an ordinary annuity of $1 for 5 periods at 5% is 4.329. The present value of the manufacturer's settlement offer is closest to: O A. $47,000 OB. $34,545 O C. $203,463 OD. $36,848 A company has 500,000 shares issued and outstanding of $1 par common stock. After a 2-for-1 stock split, which of the following statements is FALSE? O A. The par value per share decreases to $0.50 per share. OB. The number of shares outstanding is 1,000,000 O C. The number of shares issued is 1,000,000. OD. The number of shares issued is 250,000. Smith Financing leases cars to car rental companies. Smith has just signed a 5-year lease agreement that requires annual year-end lease payments of $470,000. The present value of $1 for 5 periods at 6% is 0.747. The present value of an ordinary annuity of $1 for 5 periods at 6% is 4.212. What is the present value of the lease when the lease commences using a 6% interest rate? O A. $2,350,000 O B. $1,588,600 OC. $1,979,640 OD. $$2,173,750 Gruber Law Offices paid $54,000 to buy back 9,000 shares of its $1 par value common stock. The stock was sold later at a selling price of $10 per share. The journal entry to record the sale would include a: (Do not round intermediate calculations.) O A. credit to Common Stock $36,000. OB. debit to Common Stock $54,000. O c. credit to Paid - in Capital from Treasury Stock Transactions $54,000. O D. credit to Paid - in Capital from Treasury Stock Transactions $36,000. At January 1, 2019, the Accrued Warranty Payable is $1,700. During 2019, the company recorded Warranty Expense of $19,900. During 2019, the company replaced defective products in accordance with product warranties at a cost of $12,300. What is the Accrued Warranty Payable at December 31, 2019? O A. $21,600 OB. $7,600 O c. $19,900 OD. $9,300 Williamson Company declared and distributed a 10% stock dividend when it had 100,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $20 per share when the dividend was declared. The journal entry to recl the stock dividend would include a credit to: O A. Retained Earnings $10,000 OB. Common Stock $100,000. OC. Paid - in Capital in Excess of Par-Common $190,000 OD. Retained Earnings $100,000 Cooper Company has purchased equipment that requires annual payments of $22,000 to be paid at the end of each of the next 6 years. The discount rate is 8%. The present value of $1 for six periods at 8% is 0.63. The present value of an ordinary annuity of $1 for six periods at 8% is 4.623. What amount will be assigned to the equipment at the purchase date? (Round your final answer to the nearest dollar.) O A. $4,759 O B. $115,566 O C. $101,706 OD. $13,860 NBC Corporation issued $570,000, 10%, 5-year bonds on January 1, 2019 for $616,232 when the market interest rate was 8%. Interest is paid semiannually on January 1 and July 1. The corporation uses the effective - interest method to amortize bond premium. The total amount of bond interest expense recognized on July 1, 2019 is: O A. $28,500 O B. $30,812. O c. $22,800 OD. $24,649. Pillsbury Company declares and distributes a 40% common stock dividend when it has 50,000 shares of $10 par common stock outstanding. The market pnce per share is $35 at the date of declaration. Which journal entry is prepared? O A. debit Retained Earnings $700,000, credit Paid - in Capital in Excess of Par-Common $700,000 OB. debit Retained Earnings $200,000 and credit Common Stock $200,000 OC. debit Retained Earnings $700,000 and credit Common Stock $700,000 OD. debit Retained Earnings $700,000, credit Common Stock $200,000 and credit Paid - in Capital in Excess of Par-Common $500,000