14. Under IFRS, equity is described as each of the followingexcept
a. retained equity.
b. shareholders’ funds.
c. owners’ equity.
d. capital and reserves
19. Stockton Company uses the percentage of sales method forrecording bad debt expense. For the year, cash sales are $600,000and credit sales are $2,700,000. Management estimates that 1% isthe sales percentage to use. What adjusting entry will StocktonCompany make to record the bad debt expense?
a. Bad Debt Expense 33,000
Allowance for Doubtful Accounts 33,000
b. Bad Debt Expense 27,000
Allowance for Doubtful Accounts 27,000
c. Bad Debt Expense 27,000
Accounts Receivable 27,000
d. Bad Debt Expense 33,000
Accounts Receivable 33,000
21. On September 1, Joe's Painting Service borrows $150,000 fromNational Bank on a 4-month, $150,000, 6% note. The entry by Joe'sPainting Service to record payment of the note and accrued intereston January 1 is
a. Notes Payable 153,000
Cash 153,000
b. Notes Payable 150,000
Interest Payable 3,000
Cash 153,000
c. Notes Payable 150,000
Interest Payable 9,000
Cash 159,000
d. Notes Payable 150,000
Interest Expense 3,000
Cash 153,000
12. Start Inc. has 5,000 shares of 5%, $100 par value, cumulativepreferred stock and 50,000 shares of $1 par value common stockoutstanding at December 31, 2015. What is the annual dividend onthe preferred stock?
a. $50 per share
b. $25,000 in total
c. $50,000 in total
d. $0.50 per share
