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amount should Dixon report for interest payable in its December 31,
Year 1 balance sheet?
$17,500
$16,000
$11,667
$10,667
Question 9. (TCO E) A primary source of stockholders' equity is
income retained by the corporation.
appropriated retained earnings.
contributions by stockholders.
both income retained by the corporation and contributions by
stockholders.
Question 10. (TCO F) Which of the following statements about
property dividends is not true?
A property dividend is usually in the form of securities of other
companies.
A property dividend is also called a dividend in kind.
The accounting for a property dividend should be based on the
carrying value (book value) of the nonmonetary assets transferred.
All of the above
1.
(TCO C) Redstone Company spent $190,000 developing a new
process, $45,000 in legal fees to obtain a patent, and $91,000 to market
the process that was patented. How should these costs be accounted for
in the year they are incurred?
2. (TCO D) Total payroll of Watson Co. was $920,000, of which
$160,000 represented amounts paid in excess of $100,000 to certain
employees. The amount paid to employees in excess of $7,000 was
$720,000. Income taxes withheld were $225,000. The state
unemployment tax is 1.2%, the federal unemployment tax is .8%, and