Questions -
Q1. Beaker Corporation has $75,000 in total assets, $40,000 in total liabilities, and a $10,000 credit balance in retained earnings. What is the balance in the contributed capital accounts?
A. $45,000
B. $25,000
C. $50,000
D. $35,000
Q2. On July 1, 2014, Dunker Company signed a $150,000, two-year, 6% note payable. The principal and interest will be paid on June 30, 2016. How much interest expense should be reported on the income statement for the year ended December 31, 2014?
A. $2,250
B. $4,500
C. $0
D. $9,000