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Eagle Corp. issues a $951,000, 10% 4 year notes payable on January 1, 2024.  The note will be repaid in four annual installments of $300,000, each payable at the end of the year (i.e. $300,000 at the end of 2024, $300,000 at the end of 2025, $300,000 at the end of 2026, and $300,000 at the end of 2027).  What is the amount of interest expense that should be recorded by Eagle Corp. in the second year (i.e. on the income statement for the year ended December 31, 2025)?  (Round to the nearest dollar).   Answer:  $_______

John Smith wants to retire in 15 years.  He anticipates he will need $3,000,000 to retire.  John has an account that currently pays 7% compounded annually.  If John has $850,000 in his account today how much additional money must he deposit in the account today to have $3,000,000 when he retires (use the appropriate factor table(s) to answer the question and round to the nearest dollar).  Answer:  $_______

Eagle Corp. had accounts receivable of $200,000 at the beginning the year and $160,000 at the end of the year and accounts payable at the beginning of the year of $100,000 and $90,000 at the end of the year. If the total cash collected from customers was $850,000, what was total sales revenue for the period?   Answer:  $_______

On January 1, 2023, Eagle Corp. purchased a commercial truck for $60,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000.  On December 31, 2024, the truck was exchanged for a new truck. At the time of the exchange the FMV of the old commercial truck was $42,000. In addition to trading in the old truck. Eagle Corp. also paid $30,000 of cash for the exchange.  What amount of gain or loss should Eagle Corp. record on December 31, 2024?

On April 1, 2024 Eagle Corp. purchased $60,000 of Bobcat Inc.’s 8% bonds at a purchase price of 105. At the time of purchase the market rate of interest was 6%.  Eagle Corp. whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity.  What is the carrying value (amortized cost) of the bond that Eagle Corp. would report on October 1, 2024?   Answer:  $_______

The records of Eagle Corp.  showed the following on December 31, 2024:   Net Purchases   $350,000 Purchase Returns $30,000 Gross Profit  $375,000 Beginning Inventory $20,000 Gross Sales Revenue $600,000 Sales Returns $60,000   Calculate Eagle Corp.’s Inventory Turnover Ratio for 2024? (round to two decimal places)    

On January 1, 2024, Eagle Corp. issued $4 million of 10 year bonds at an 8% stated interest rate to be paid annually.  Eagle Corp. issued the bonds for $3,501,514 since the market rate of interest was 10%.  What is the carrying value of the bond that Eagle Corp. would report on its December 31, 2025 balance sheet? (round to the nearest dollar)

Equipment acquired on January 1, 2020, is sold on June 30, 2024, for $14,500. The equipment cost $28,600, had an estimated residual value of $8,000, and an estimated useful life of 5 years. The company operates on a calendar year and the equipment has been depreciated using the straight-line method.  What amount of gain or loss should the company record on their financial statements for the year ended 2024?

On April 1, 2024 Eagle Corp. purchased $80,000 of Bobcat Inc.’s 6% bonds at a purchase price of 96. At the time of purchase the market rate of interest was 8%.  Eagle Corp., whose year end is December 31, expects to hold the bonds until their maturity date 5 years from the date of purchase. Interest on the bonds will be paid every April 1 and October 1 until maturity.  What is the carrying value (amortized cost) of the bond that Eagle Corp. would report on October 1, 2024?   Answer:  $_______

Eagle Corp. had the following data for the month of March: Beginning inventory, March 1 316 units at $16 per unit March 19 purchase 204 units at $25 per unit March 27 purchase 198 units at $27 per unit On March 31, 230 units are still on hand. Determine the cost of goods sold for March if Eagle Corp. uses the FIFO method. Answer:  $_______