Wisconsin Bank lends Local Furniture Company $130,000 on November 1. Local Furniture Company signs a $130,000, 6%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is: O A. debit Interest Expense and credit Cash for $1,300 OB. debit Interest Payable and credit Cash for $1,300 OC. debit Interest Payable and credit Interest Expense for $1,300 OD. debit Interest Expense and credit Interest Payable for $1,300 A company incurred the following costs: Purchase price of land Survey fees Payment for demolition of old building on land Back property taxes on land Paving costs for parking lot Fence around perimeter of land Lights in parking lot Signs for new business $280,000 6,000 40,000 2,000 50,000 15,000 90,000 5,000 What is the cost of the land? O A. $378,000 O B. $326,000 OC. $328,000 OD. $280,000 Michigan Bank lends Detroit Furniture Company $60,000 on December 1. Detroit Furniture Company signs a $60,000, 10%, 4-month note. The total cash paid for interest (only) at maturity of the note is: (Round your final answer to the nearest dollar.) O A. $6,000 O B. $4,000 OC. $600 OD. $2,000 A company reports the following balances: Common Stock Paid - in Capital in Excess of Par Land Retained Earnings Treasury Stock 12/31/2017 $15,000 10,000 96,000 70,000 13,000 12/31/2018 $161,000 10,000 110,000 84,000 14,000 During 2018, net income of $33,000 was reported. No treasury stock was sold during 2018. No common stock was retired during 2018. No land was sold during 2018. What financing activities are reported on the statement of cash flows prepared with the indirect method for the year ending December 31, 2018? O A. sale of treasury stock $1,000 and Payment of dividends $19,000 OB. purchase of treasury stock $1,000, Payment of dividends $19,000 and Sale of common stock $146,000 OC. sale of treasury stock $1,000, purchase of land $10,000 OD. payment of dividends $14,000, Sale of common stock $160,000, and Purchase of treasury stock $1,000 A year - end review of Accounts Receivable and estimated uncollectible percentages revealed the following: Est. Percent Uncollectible 3% Days Outstanding 1-30 days 31 -60 days 61 - 90 days Over 90 days Accounts Receivable $65,000 $45,000 $24,000 $7,000 4% Before the year-end adjustment, the credit balance in Allowance for Uncollectible Accounts was $1,000. Under the aging-of-receivables method, the Uncollectible - Account Expense at year-end is: O A. $10,030 OB. $1,950 OC. $11,030 OD. $9,030
