QUESTION 31 Tractor World offers warranties on all their tractors They estimate warranty expense at 2 4 of sales At the beginning of 2013, the Estimated warranty payable account had a credit balance of $900 During the year, Tractor World had $285,000 of sales, and had to pay out $5,100 in warranty payments At the end of the year, how much warranty expense was reported on the income statement $2,640 $5,100 $4,200 $6,840 3 points QUESTION 32 Which of the following occurs when a corporation distributes a stock dividend Total liabilities increase Stockholders' equity increases Total assets decrease Stockholders' equity remains unchanged 3 points QUESTION 33 On July 1, 2013, Avery Services issued a long term note payable for $10,000 It is payable over a 5 year term in $2,000 installments on July 1 of each succeeding year When the note was issued, the principal amount was recorded in long term notes payable and a second entry was made to reclassify the current portion How will this information be shown on the balance sheet dated December 31, 2013 $10,000 shown as current liability only $2,000 shown as current liability $10,000 shown as long term liability $2,000 shown as current liability $8,000 shown as long term liability The entire $10,000 shown as long term liability 3 points QUESTION 34 Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding The common stock is $0 01 par value the preferred stock is 4 non cumulative, with $100 par value On October 15, 2014, the company declares a total dividend payment of $40,000 How much dividend will be paid to the preferred shareholders $40,000 $2,000 $8,000 $4,500 3 points QUESTION 35 Orleans Company was incorporated on January 1, 2012 Orleans issued 4,000 shares of common stock and 500 shares of preferred stock on that date The preferred shares are cumulative, $100 par, with an 8 dividend rate Orleans has not paid any dividends yet In 2015, Orleans had its first profitable year, and on November 1, 2015, Orleans declared a total dividend of $28,000 What is the total amount that will be paid out to preferred shareholders $4,000 $16,000 $3,200 $28,000

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QUESTION 31 Tractor World offers warranties on all their tractors. They estimate warranty expense at 2.4% of sales. At the beginning of 2013, the Estimated

QUESTION 31

Tractor World offers warranties on all their tractors. They estimate warranty expense at 2.4% of sales. At the beginning of 2013, the Estimated warranty payable account had a credit balance of $900. During the year, Tractor World had $285,000 of sales, and had to pay out $5,100 in warranty payments. At the end of the year, how much warranty expense was reported on the income statement?

		$2,640
		$5,100
		$4,200
		$6,840

3 points

QUESTION 32

Which of the following occurs when a corporation distributes a stock dividend?

		Total liabilities increase.
		Stockholders' equity increases.
		Total assets decrease.
		Stockholders' equity remains unchanged.

3 points

QUESTION 33

On July 1, 2013, Avery Services issued a long-term note payable for $10,000. It is payable over a 5-year term in $2,000 installments on July 1 of each succeeding year. When the note was issued, the principal amount was recorded in long-term notes payable and a second entry was made to reclassify the current portion. How will this information be shown on the balance sheet dated December 31, 2013?

		$10,000 shown as current liability only
		$2,000 shown as current liability; $10,000 shown as long-term liability
		$2,000 shown as current liability; $8,000 shown as long-term liability
		The entire $10,000 shown as long-term liability

3 points

QUESTION 34

Occidental Produce Company has 40,000 shares of common stock outstanding and 2,000 shares of preferred stock outstanding. The common stock is $0.01 par value; the preferred stock is 4% non-cumulative, with $100 par value. On October 15, 2014, the company declares a total dividend payment of $40,000. How much dividend will be paid to the preferred shareholders?

		$40,000
		$2,000
		$8,000
		$4,500

3 points

QUESTION 35

Orleans Company was incorporated on January 1, 2012. Orleans issued 4,000 shares of common stock and 500 shares of preferred stock on that date. The preferred shares are cumulative, $100 par, with an 8% dividend rate. Orleans has not paid any dividends yet. In 2015, Orleans had its first profitable year, and on November 1, 2015, Orleans declared a total dividend of $28,000. What is the total amount that will be paid out to preferred shareholders?