Question 2 (1 point) Listen Reptile Co. has the following shareholders' equity accounts: Preferred Shares, 100,000 issued and outstanding, no par $250,000 Common Shares, 70,000 issued and outstanding $545,000 Contributed Surplus - preferred shares $ 12,000 Retained Earnings $698,000 Reptile Co. redeems 55,000 preferred shares for $4.00 per share. What should the journal entry be for this redemption? Dr. Preferred Shares $220,000; Cr. Cash $220,000 Dr. Preferred Shares $137,500, Dr. Contributed Surplus $82,500; Cr. Cash $220,000 Dr. Preferred Shares $137,500, Dr. Loss on redemption $82,500; Cr. Cash $220,000 ODR Preferred shares 137,500 DR Contributed surplus 12,000 DR Retained Earnings 70,500 CR Cash 220,000 Question 3 (1 point) Listen On November 7, 2021 local residents sued Panda Corporation for excess chemical emissions that caused some of them to seek medical attention. The total lawsuit is for $8,000,000 against Panda. Panda Corporation's lawyers believe that Panda will be liable and that the amount most likely amount of damages that Panda will need to pay is $4,000,000. On its December 31, 2021 year-end financial statements Panda should: Do nothing as the lawsuit is still in progress and no verdict has been reached. Only disclose the details regarding the lawsuit in a note to financial statements. Do not accrue any amount. Accrue a provision and loss of $8,000,000 with financial statement note disclosure. Accrue a provision and loss of $4,000,000 with financial statement note disclosure. Question 4 (2 points) Listen Cheetah Corporation authorized $700.000 6% 10-year bonds dated January 1, 2021. At January 1, 2021, the bonds would yield an effective interest rate of 5%. The bonds were issued on January 1, 2021 and the proceeds were $754,562. The bonds pay interest each June 30 and December 31. Tiger Corporation accounts for interest using effective interest calculations and has a December 31 year end. Blank 1 (top): What will the amount of interest expense recorded be on June 30, 2021? Blank (bottom): What will the amount of cash paid to the bondholders be on June 30, 2021? Round all answers to the nearest whole dollar. Do not use dollar signs, commas or decimals. Blank # 1 Blank # 2