Sweet Companys outstanding stock consists of 1,100 shares of noncumulative 5% preferred stock with a $100 par value and 11,100 shares of common stock with a $10 par value. During the first three years of operation, the corporation declared and paid the following total cash dividends.

	Dividend Declared
year 1	$	3,100
year 2	$	8,200
year 3	$	37,500

The total amount of dividends paid to preferred and common shareholders over the three-year period is:

Multiple Choice

• $13,700 preferred; $35,100 common.

• $5,500 preferred; $43,300 common.

• $11,000 preferred; $37,800 common.

• $14,100 preferred; $34,700 common.

• $16,500 preferred; $32,300 common.

2.

A company must repay the bank a single payment of $25,000 cash in 4 years for a loan it entered into. The loan is at 7% interest compounded annually. The present value factor for 4 years at 7% is .7629. The present value of an annuity factor for 4 years at 7% is 3.3872. The present value of the loan (rounded) is:

Multiple Choice

• $29,101.

• $84,680.

• $7,381.

• $25,000.

• $19,073.

3.

Zheng invested $168,000 and Murray invested $268,000 in a partnership. They agreed to share incomes and losses by allowing a $77,000 per year salary allowance to Zheng and a $57,000 per year salary allowance to Murray, plus an interest allowance on the partners beginning-year capital investments at 10%, with the balance to be shared equally. Assuming net income for the current year is $139,000, the journal entry to allocate net income is:

Multiple Choice

• Debit Income Summary, $139,000; Credit Zheng, Capital, $48,600, Credit Murray, Capital, $90,400.

• Debit Income Summary, $139,000; Credit Zheng, Capital, $45,900, Credit Murray, Capital, $93,100.

• Debit Income Summary, $139,000; Credit Zheng, Capital, $74,500, Credit Murray, Capital, $64,500.

• Debit Income Summary, $139,000; Credit Zheng, Capital, $69,500, Credit Murray, Capital, $69,500.

• Debit Zheng, Capital, $74,500, Debit Murray, Capital, $64,500; Credit Income Summary, $139,000;

4.

Masters, Hardy, and Rowen are dissolving their partnership. Their partnership agreement allocates income and losses equally among the partners. The current period's ending capital account balances are Masters, $15,900, Hardy, $15,900, Rowen, $(2,900). After all the assets are sold and liabilities are paid, but before any contributions to cover any deficiencies, there is $28,900 in cash to be distributed. Rowen pays $2,900 to cover the deficiency in his account. The general journal entry to record the final distribution would be:

rev: 06_15_2018_QC_CS-128536

Multiple Choice

• Debit Cash $28,900; debit Rowen, Capital $2,900; credit Masters, Capital $15,900; credit Hardy, Capital $15,900.

• Debit Masters, Capital $9,634; debit Hardy, Capital $9,633; debit Rowen, Capital $9,633; credit Cash $28,900.

• Debit Masters, Capital $15,900; debit Hardy, Capital $15,900; credit Rowen, Capital $2,900; credit Cash $28,900.

• Debit Masters, Capital $15,900; debit Hardy, Capital $15,900; credit Cash $31,800.

• Debit Masters, Capital $14,450; debit Hardy, Capital $14,450; credit Cash $28,900.

4.

Cox, North, and Lee form a partnership. Cox contributes $198,000, North contributes $165,000, and Lee contributes $297,000. Their partnership agreement calls for a 5% interest allowance on the partner's capital balances with the remaining income or loss to be allocated equally. If the partnership reports income of $153,000 for its first year, what amount of income is credited to Lee's capital account?

Multiple Choice

• $48,250.

• $51,000.

• $54,850.

• $40,000.

• $49,900.