Wisconsin Bank lends Local Furniture Company $150,000 on November 1. Local Furniture Company signs a $150,000, 9%, 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 Interest Payable for $2,250 OB. debit Interest Payable and credit Cash for $2,250 O C. debit Interest Expense and credit Cash for $2,250 O D. debit Interest Payable and credit Interest Expense for $2,250 Solderman Company issued $460,000, 8%, 10-year bonds for $462,800 with a market rate of 10%. The effective interest method of amortization is used and interest is paid annually. The journal entry on the first interest payment date would include a: O A. credit to Cash of $46,280. OB. credit to Interest Expense of $36,800. O C. credit to Interest Expense of $46,280. OD. credit to Cash of $36,800. On January 1, 2018, bonds with a face value of $109,000 were sold. The bonds mature on January 1, 2028. The face interest rate is 6%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 12%. What is the market price of the bonds on January 1, 2018? The present value of $1 for 20 periods at 6% is 0.312. The present value of an ordinary annuity of $1 for 20 periods at 6% is 11.47. The present value of $1 for 20 periods at 3% is 0.554. The present value of an ordinary annuity of $1 for 20 periods at 3% is 14.878. (Round your final answer to the nearest dollar.) O A. $112,270 OB. $109,000 OC. $71,515 OD. $109,037 Kathy's Corner Store has total cash sales for the month of $36,000 excluding sales taxes. If the sales tax rate is 4%, which journal entry is needed? (Ignore Cost of Goods Sold.) O A. debit Cash $36,000 and credit Sales Revenue $36,000 O B. debit Cash $34,560, debit Sales Tax Receivable for $1,440 and credit Sales Revenue for $36,000 OC. debit Cash $37.440, credit Sales Revenue $36,000 and credit Sales Tax Payable $1,440 O D. debit Cash $37.440, credit Sales Revenue $37.440 Mariano Corporation sells 12,000 units of inventory during the first year of operations for $400 each. Mariano provides a one-year warranty on parts. It is estimated that 3% of the units will be defective and that repair costs are estimated to be $40 per unit. In the year of sale, warranty contracts are honored on 60 units for a total cost of $2,400. What amount will be reported as Estimated Warranty Liability at the end of the year? O A. $14,400 O B. $2,880 O C. $12,000 OD. $2,400 Lewandowski Company reports the following information at the current fiscal year end of December 31: Common Stock, $0.10 par value per share Paid - in Capital in Excess of Par - Common Retained Earnings Total Stockholders' Equity $98 million 300 million 900 million $1,298 million What is the total paid - in capital for this company at December 31 of the current year? O A. $1,298 million O B. $998 million O c. $398 million O D. $98 million
