A partial amortization schedule for a 10-year note payable issued on January 1, 2016, is shown below.

a. Using the financial statement model below, record the appropriate amounts for the following two events:
1. January 1, 2016, issue of note payable
2. December 31, 2016, payment on the note payable.
Exercise 10-5A on page 567
Singer Company has a line of credit with United Bank. Singer can borrow up to $400,000 at any time to over the course of 2016 calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first three months of 2016. Singer agreed to pay interest at an annual rate equal to 2% above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate applied to the outstanding monthly balance. For example, Singer pays 6.5% (4.5% + 2%) annual interest on $140,000 for the month of February.
Month...............Amount Borrowed/(Repaid)....................Prime Rate for the Month
January...........................$80,000.............................................4.0%
February...........................60,000................................................4.5
March.............................(20,000)...............................................4.0
Provide all journal entries pertaining to Singer's line of credit for the first three months of 2016.
Exercise 10-25A on page 572
Composite Solutions Company (CSC) has the following account balances:

The company wishes to raise $80,000 in cash and is considering two financing options: CSC can sell $80,000 of bonds payable, or it can issue additional common stock for $80,000. To help the decision process, CSC's management wants to determine the effects of each alternative on its current ratio and debt to assets ratio.
Help CSC's management company by completing the following chart
Ratio Currently If bonds are issued If stock is issued
Current ratio:
Debt to asset ratio:
Assume that after the funds are invested, EBIT amounts to $60,000. Also assume the company pays $6,000 in dividends or $6,000 in interest depending on which source of financing is used. Based on a 40% tax rate, determine the amount of the increase in retained earnings that would result under each financing option.
Exercise 10-19A on page 571
On January 1, 2016, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6%, and a 10-year term to maturity Interest is payable in cash on December 31 of each year. The effective rate of interest was 7% at the time the bonds were issued. The bonds sold for $278,932. Diamond used the effective interest rate method to amortize the bond discount.
Determine the amount of the discount on the day of issue.
Determine the amount of interest expense recognized on December 31, 2016.
Determine the carrying value of the bond liability on December 31, 2016.
Provide the general journal entry necessary to record the December 31, 2016, interest expense.
Exercise 10-20A on page 571
On January 1, 2016, Parker Company issued bonds with a face value of $80,000, a stated rate of interest of 8%, and a 5-year term to maturity. Interest is payable cash on December 31 of each year. The effective rate of interest was 9% at the time the bonds were issued. The bonds sold for $76,888. Parker used the effective interest rate method to amortize the bond discount.
Prepare an amortization table
What items in the table would appear on the 2019 balance sheet?
What items in the table would appear on the 2019 income statement?
What items in the table would appear on the 2019 statement of cash flows?

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Acct. Period 2016 2017 2018 Principle Jan Cash Payment Applied Interest Applied Principle S200,000 184,826 168,742 S27, 174 27,174 27,174 $12,000 11,090 10,125 $15,174 16,084 17,049 $100,000 Noncurrent Liabilities 250,000 150,000 Current Assets $150,000 Current Liabilities Noncurrent assets 350,000 Stockholder's Equity