Question 40 (2 points) On October 1, 2018, Mekhi's Golf Service Limited borrows $80,000 from Rigor Bank by signing a 3-month, $80,000, 4% bank loan. Interest is due the first of each month. What adjusting entry is required at December 31, 2018? 800 Interest Payable Interest Expense 800 800 Interest Expense Interest Payable 800 267 Interest Expense Bank Loan Payable 267 267 Interest Expense Interest Payable 267 Question 41 (2 points) The following totals for the month of April were taken from the payroll register of Branson Corp.: Gross salaries.. $26,850 CPP withheld.. 1,330 5,785 Employee income taxes withheld..... Medical insurance deductions........ 930 EI withheld... 478 Union dues withheld.. 446 The journal entry to record the accrual of the employee's portion of Canada Pension Plan (CPP) would include a credit to Employee Benefits Expense of $1,330. debit to CPP Expense of $1,330. debit to CPP Payable of $1,330. credit to CPP Payable of $1,330. Question 42 (2 points) Forest Construction Ltd. issued 5,000 common shares in exchange for a parcel of land on January 27. The shares were trading at $3.50 per share and the fair value of land was $20,000 on the date of the acquisition. The assessed value of the land for the property tax purpose is $15,000. The journal entry to record the transaction would include a debit Loss on Land Acquisition $5,000 credit Common Shares $20,000 credit Common Shares $ 17,500. debit Land $15,000 Question 43 (2 points) Based on the following account balances, what is the total shareholders' equity? Common Shares... Stock Dividends Distributable. Retained Earnings. Preferred Shares.. Dividends Payable.. $600,000 40,000 190,000 20,000 30,000 $820,000 $800,000 $620,000 $850,000 Question 44 (2 points) Finish Cement Inc. is a publicly-traded company with 800,000 authorized common shares. The company has 100,000 common shares outstanding. On June 15, 2018, when the fair value of the shares was $4, the company declared and issued a 2-for-1 stock split. What is the journal entry that should be made by the company on June 15, 2018? 3,200,000 Cash. Common Shares..... 3,200,000 800,000 Stock Split... Common Shares......... 800,000 No journal entry is necessary. Cash. 400,000 Common Shares... 400,000
