Author: Anonymous

A corporation borrowed $125,000 cash by signing a 5-year, 9% installment note requiring equal annual payments each December 31 of $32,136. What journal entry would the issuer record for the first payment?

A company issues 9%, 5-year bonds with a par value of $100,000 on January 1 at a price of $106,160, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is:

The carrying (book) value of a bond at the time it is issued is always equal to its par value.

On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The amount of interest expense to be recorded on June 30 is $25,000.

The amount of federal income tax withheld from employee pay depends on the employee’s annual earnings rate and the number of withholding allowances claimed by the employee.

Accrued vacation benefits are a form of estimated liability for an employer.

The straight-line depreciation method yields a steady pattern of depreciation expense.

Uncertainties such as natural disasters are:

Asset turnover is computed by dividing net sales by average total assets.

Debt guarantees are: