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Tay County Bank agrees to lend the Starkwood Building Company $100,000 on January 1. Kwood Building Company signs a $100,000, 9%, 9-month note. What is

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Tay County Bank agrees to lend the Starkwood Building Company $100,000 on January 1. Kwood Building Company signs a $100,000, 9%, 9-month note. What is the adjusting entry required if Starkwood Building Company prepares financial statements on June 302 DR 9,000 CR 9,000 a. Interest Expense Interest Payable b. Interest Expense Interest Payable c. Interest Expense Interest Payable d. Interest Payable Interest Expense 4,500 6,750 4,500 6,750 4,500 4.500 47. A fixed asset with a cost of $30,000 and accumulated depreciation of $27,500 is sold for $3,500. What is the amount of the gain or loss on disposal of the fixed asset? a. $2,500 loss b. $1,000 loss c. $2,500 gain d. $1,000 gain 48. On January 1, 20A, two individuals invested $200,000 each to form Reiner Corporation. Reiner had total revenues of $20.000 during 20A and $50,000 during 20B. Total expenses for the same periods were $12,000 and $36.000 respectively. Cash dividends paid out to stockholders totaled $6,000 in 20A and $10,000 in 20B. What was Reiner's total stockholders' equity at the end of 20A and 20B? A) B) C) D) $402,000 and $406,000 respectively. $8,000 and $14,000 respectively. $8,000 and $22,000 respectively. $402,000 and $404,000 respectively. 49. Merchandise inventory at the end of the year was inadvertently overstated. Which of the following statements correctly states the effect of the error on net income, assets, and stockholders' equity? a. net income is overstated, assets are overstated, stockholders' equity is understated b. net income is overstated, assets are overstated, stockholders' equity is overstated c. net income is understated, assets are understated, stockholders' equity is understated d. net income is understated, assets are understated, stockholders' equity is overstated

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