On February 2, Year 1, Farmer Corporation issued 9,000 share…

On February 2, Year 1, Farmer Corporation issued 9,000 shares of no-par stock for $17 per share. Within two hours of the issue, the stock’s price jumped on the New York Stock Exchange to $21 per share. Which of the following answers describes the effect of the February 2 transaction on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityCash+Accounts Receivable=Accounts Payable+Common Stock+Retained EarningsRevenue−Expense=Net IncomeA.153,000+ = +153,000+ − = 153,000 FAB.189,000+ = +189,000+ − = 189,000 IAC.153,000+ = +153,000+ − = 153,000 IAD.189,000+ = +189,000+ − = 189,000 FA

Chadwick Associates retained $850,000 of net income in the b…

Chadwick Associates retained $850,000 of net income in the business in Year 1. If $75,000 was appropriated to satisfy the restrictive covenant of a loan agreement, what are the effects of the appropriation on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue−Expense=Net incomeA. = + − = B.(75,000)= +(75,000) − = (75,000) FAC.(75,000)= +(75,000) −75,000=(75,000)(75,000) FAD.(75,000)= +(75,000) − =

On January 1, Year 2 Grande Company had a $16,000 balance in…

On January 1, Year 2 Grande Company had a $16,000 balance in the Accounts Receivable account and a zero balance in the Allowance for Doubtful Accounts account. During Year 2, Grande provided $104,000 of service on account. The company collected $97,000 cash from accounts receivable. Uncollectible accounts are estimated to be 2% of sales on account.What is the amount of uncollectible accounts expense recognized on the Year 2 income statement?