On January 1, 2019, Pelino, Inc. issued $1,600,000, 10-year, 8% bonds for $1,400,600. The bonds pay interest on June 30 and December 31. The market rate is 10%. How much is the interest expense on the bonds for the first interest payment on June 30, 2019? A $ 64,000 B. $140.060 C. $168.000 D$ 70.030 Forest Grove Appliances, Inc. sells food processors for $900 with a 120-day warranty against defects. Past experience indicates that 5% of the processors will have some defect during the warranty period and that the necessary repairs and adjustments will cost $150 per defective unit. Sales for August were $1,404,000. 30 of the units sold in August were reported defective and repaired in August What is the August 31 journal entry for the estimated liability for product warranties for units sold in August? A) Product Warranty Expense 70.200 Estimated Liability for Product Warranty 70.200 B) Product Warranty Expense 7.200 Estimated Liability for Product Warranty 7.200 C) Estimated Liability for Product Warranty 11,700 Product Warranty Expense 11.700 The December 31, 2019, balance sheet of Patrick Company includes the following information: Inventory $1,500,000 Prepaid Expenses 120,000 3,600,000 Total Current Assets Total Current Liabilities 1,575,000 1,080,000 Accounts Payable What is Patrick's quick ratio at December 31, 2019? A).80 B) 1.71 C) 1.85 D) 1.26 On November 1, Luna borrowed from Lumos, giving him a $36,000, 3 month, 9% note, interest payable at maturity. Luna made no entry after November 1. What entry would Luna make on December 31, the end of the accounting period? 540 540 A) Interest Payable 540 Interest Expense B) Interest Expense 540 Interest Payable C) Interest Expense 540 Cash D) Interest Expense 540 Discount on Notes Payable 540 540 The December 31, 2019, balance sheet of Patrick Company includes the following information: Inventory $1,500,000 Prepaid Expenses 120,000 3,600,000 Total Current Assets Total Current Liabilities 1.575,000 1,080,000 Accounts Payable What is Patrick's quick ratio at December 31, 2019? A).80 B) 1.71 C) 1.85 D) 1.26 Allda Company has 40,000 shares of $320 par value, 5% cumulative preferred stock and 140.000 shares of $80 par value common stock. Alicia cnclares and pays cash dividends amounting to sho0,000, If no arrearage on the preferred stock exists, how much in dividends per share (use two decimal places) is paid to the common stockholders? A) $ 1.86 B) 516,00 C$ 4.00 D) 56:44 Emma Company provides a 12-month warranty on all their products. During 2019, they had total sales of $1,400,000, and estimated warranty costs to be 3% of sales. On January 1, 2019, the Estimated Warranty Liability account had a debit balance of $6,000, and it had a credit balance of $10,000 on December 31, 2019 What was the actual cost of repairs covered under warranties during 2019? A $43,000 B. $31.400 C $26.000 D. $36.000
