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Sarah Harmer, Inc. issues 5%, 5-year bonds with a par value of $1,000,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6%. What is the bond’s issue (selling) price, assuming the following factors:  n=   i=   Present Value of an Annuity   Present value of $1 5   5 %     4.3295   0.7835 10   3 %     8.7521   0.7812 5   6 %     4.2124   0.7473 10   3 %     8.5302   0.7441

Which of the following is classified as a plant asset?

Durr company makes a $60,000, 60-day, 12% cash loan to Ling Co. The maturity value of the loan is: (Use 360 days a year.)

The accrual basis of accounting recognizes expenses when cash is paid.

McLean Company installs a manufacturing machine in its production facility at the beginning of the year at a cost of $87,000. The machine’s useful life is estimated to be 5 years, or 400,000 units of product, with a $7,000 salvage value. During its second year, the machine produces 84,500 units of product. Determine the machines’ second year depreciation under the double-declining-balance method.

Tipsy Travel had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and dividends to stockholders of $9,000. There were no stockholder investments during the year. Calculate ending equity.

On April 12, Baker Industries agrees to accept a 60-day, 10%, $4,500 note from Spencer, Inc. to extend the due date on an overdue account. What is the journal entry that Spencer, Inc. would make, when it records payment of the note on the maturity date? (Use 360 days a year.)

During August, Bulldozers R Us sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the customer warranty repairs is:

Intangible assets are assets that are long-term, have physical form, and are used to produce or sell products and services.

On January 1, Rolling Rock Magazine received $15,000 from subscribers for the annual subscriptions that it recorded in Unearned Subscription Revenue. The issues of the magazine are mailed to subscribers quarterly. What amount of subscription revenue should the magazine recognize on March 31 when the first issue is sent in March?