Question 1 (2 points) Listen Kinsella Seed borrowed $800,000 on April 1, 2019, at 12% annual interest rate. The interest and principal are due on April 1, 2020. Kinsella's fiscal year ends at December 31. What journal entry should be made with respect to the interest payment on April 1, 2020? Debit Interest Expense 16,000: Debit Interest Payable 80,000; Credit Cash 96,000 Debit Interest Expense 72,000; Credit Cash 72,000. Debit Interest Expense 24,000; Debit Interest Payable 72,000; Credit Cash 96,000. Debit Interest Expense 96,000; Credit Cash 96,000. Wiley ebook Question 3 (2 points) Listen Systat Ltd holds 18% of the common shares of Welsch Ltd as a short-term investment (FVTPL method). Welsch has just declared and paid a cash dividend of $0.25 per share to all common shareholders. Which of the following item best describes the effect of this event on the financial ratios of Systat? Earnings Per Share will decrease. Asset Turnover Ratio will increase. Times interest earned ratio will not change. Quick Ratio will increase. 2 of 19 Question 2 (2 points) Listen Using the aging approach for recording bad debts expense, estimated ending balance of Allowance for Doubtful Accounts are $10,000. If the balance of the Allowance for Doubtful Accounts is $2,000 on debit before adjustment, what is the amount of bad debts expense for that period? $2,000. $12,000. $8,000. $10,000. Question 4 (2 points) Listen Grey Company purchased a new van for floral deliveries on April 1, 2019. The van cost $48,000 with an estimated life of 6 years and $6,000 residual value at the end of its useful life. The double-declining balance method of depreciation will be used and December 31 is fiscal year end. What is the balance of the Accumulated Depreciation account at December 31 2019? 14,000. 16,000. 12,000. 10,500