please answer all. thank you

1.

SPI-B, which started business at the beginning of Year 1, selected the specific identification method for its inventory costing. For profits to be maximized for Year 1 under this method, which of the following must be the case?

	a.	All items available for sale at any point during the year remain in ending inventory.
	b.	Units remaining in ending inventory are a combination of low-cost and high-cost items.
	c.	Units remaining in ending inventory have the lowest cost of all inventory that had been available for sale at any point during the year.
	d.	Units remaining in ending inventory have the highest cost of all inventory that had been available for sale at any point during the year.

2.

1. How will a premium on bonds payable account appear on the statement of financial position?

   	a.	as revenue
   	b.	as a contra liability
   	c.	as a long-term asset
   	d.	as an increase to a long-term liability

3.

1. Which of the following best describes an appropriation of retained earnings?

   	a.	a reserve established for a specific business purpose
   	b.	an allowance for future treasury shares transactions
   	c.	an allowance for future preferred shares redemptions
   	d.	a reserve for possible declines in the market value of the corporations capital shares

4.

Why might a corporations ability to distribute dividends be restricted?

	a.	Provincial laws may require that the retained earnings balance not fall below the cost of issued shares.
	b.	The shareholders may set aside designated amounts for future expansion or other business purposes.
	c.	The corporate charter may require that transactions with non-owners be excluded from retained earnings.
	d.	An agreement with bondholders may require that the balance of retained earnings be maintained at a minimum level.

5.

During January, SPKY, experienced some difficulties with cash flow, so it approached one of its vendors about a payment extension. The vendor agreed to the extension on the condition that the company sign a 30-day note that includes 9% interest. What journal entry is needed to record the retirement (and repayment) of the note on the maturity date?

a.

Debit notes payable and credit cash

b.

Debit notes payable, debit interest expense, and credit cash.

c.

Debit notes payable, credit interest expense, and credit cash.

d.

Debit accounts payable, debit interest expense, and credit notes payable.