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On January 1, Year 1 Residence Company issued bonds with a $68,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20-year term and a stated rate of interest of 7%. Assuming a straight-line amortization of the discount, the amount of interest expense recognized on the December 31, Year 1 income statement is:

The Miller Company earned $190,000 of revenue on account during Year 1. There was no beginning balance in the accounts receivable and allowance accounts. During Year 1, Miller collected $136,000 of cash from its receivables accounts. The company estimates that it will be unable to collect 3% of its sales on account.What is the net realizable value of Miller’s receivables at the end of Year 1?

Which of the following occurs when a company replenishes its petty cash fund?

Harding Corporation acquired real estate that contained land, building and equipment. The property cost Harding $1,425,000. Harding paid $350,000 and issued a note payable for the remainder of the cost. An appraisal of the property reported the following values: Land, $370,000; Building, $1,100,000 and Equipment, $730,000.What value will be reported for the land on the balance sheet?Note: Round intermediate percentage values to a whole percentage. Do not round other intermediate calculations.

Crowe Company began operations on January 1, Year 1. The company was organized as a sole proprietorship. During Year 1, Crowe acquired $69,000 of capital from John Crowe, the owner. Also, during Year 1 the company earned net income of $39,000. Based on this information, Crowe can withdraw (assume all transactions are cash transactions):

Crowe Company began operations on January 1, Year 1. The company was organized as a sole proprietorship. During Year 1, Crowe acquired $60,000 of capital from John Crowe, the owner. Also, during Year 1 the company earned net income of $40,000 and John Crowe withdrew $35,000 from the business. Based on this information, the company would show:

On January 1, Year 1, Marino Moving Company paid $116,000 cash to purchase a truck. The truck was expected to have a four-year useful life and an $42,000 salvage value. If Marino uses the straight-line method, the amount of book value shown on the Year 2 balance sheet is:

Farmer Company sold a piece of equipment for $6,000. The equipment had an original cost of $34,000 and accumulated depreciation of $31,000 at the time of the sale. Which of the following correctly shows the effect of the sale on the financial statements? Balance SheetIncome StatementStatement of Cash FlowsAssets=Liabilities+Stockholders’ EquityRevenue or Gain−Expense=Net IncomeA.3,000= +3,0003,000− =3,0006,000 OAB.(3,000)= +(3,000) −3,000=(3,000)6,000 IAC.3,000= +3,0003,000− =3,0006,000 IAD.6,000= +6,000 − =6,0006,000 IA

Glasgow Enterprises started the period with 70 units in beginning inventory that cost $2.50 each. During the period, the company purchased inventory items as follows: PurchaseNumber of ItemsCost1360$3.002120$3.10360$3.50 Glasgow sold 380 units after purchase 3 for $9.60 each.What is Glasgow’s ending inventory under weighted-average?Note: Round your intermediate computation to 2 decimal places.

Taylor Tools has sales of $400,000 in Year 1. Taylor warrants its products and estimates warranty expense to be 4% of sales. Which of the following shows how the year-end adjusting entry would affect the company’s assets, liabilities, and cash flow from operating activities? Total AssetsLiabilitiesCash Flow from Operating ActivitiesA. $ 16,000$ (16,000)B. $ 16,000 C.$ (16,000)$ 16,000 D.$ 16,000$ (16,000)