Chance Enterprises leased equipment from Third Bank Leasing on January 1, 2021. Chance elected the short-cut lease option. Appropriate adjusting entries are made annually.  What journal entry is required on January 1, 2021?    

__________ messaging service, also called MMS, allows users to send and receive photos, videos, and audio files, as well as short text messages to another mobile device.

Which accounting method cannot be used with equity securities? 

Chapter 21, Leases

Hope Company bought 30% of Faith Corporation in 2020, and uses the equity method to account for the investment.  Suppose that on the receipt of dividends, Faith made the entry:             Cash                                           $100,000                            Investment in Faith Corp.      $100,000 I think that it is the correct entry to make when an equity method investor receives dividends. What is the effect on Assets and Shareholder’s equity of this journal entry?             Assets                                    Shareholders’ equityA.        increase $100,000         increase $100,000B.        increase $100,000         decrease $100,000C.        decrease $100,000       decrease $100,000D.        no change                            no change

 Bonds are issued on June 1, 2020 that have interest payment dates of April 1 and October 1. Consider the financial statements for the year ended December 31, 2020.  Bond interest expense and interest payable on the financial statements for the year ended December 31, 2020, is for a period of:          Interest expense            Interest payableA.        Seven months.             Three monthsB.        Seven months.             Seven monthsC.        Three months.             Seven monthsD.        Three months.             Three months

ABC declared and paid cash dividends in January of the current year.  ABC paid $5 million to preferred shareholders and $3 million to common shareholders. What effect will the dividends have on the numerator of the basic EPS? 

The following information pertains to Seda Co.’s pension plan: What was Seda’s projected benefit obligation at December 31, if no change in actuarial estimates or amendments occurred during the year?

Which of the following is not a condition in the determination of when a valid contract exists:

Oklahoma Oil Corp. paid interest of $785,000 during 2018, and the discount on bonds payable fell by $100,000.  What was interest expense for the year?