1) A company issued a 5 year, 7% B/P with a face value of $300,000 when the market rate if 8%. How much are the semiannual payments?

2) For 2012, Corn Flake Corporation reported NI of $300,000, interest expense $40,000, and income tax expense $100,000. What is the times interest earned ratio?

3) A company issues an 8 year, 7% B/P with a face value of $200,000 at 98 when the market interest rate is 8%. Interest payments are made semiannually. What is the current market value?

4) A company issued a 5 year, 7% B/P with a face value of $300,000 at 103 when the market rate if 6%. Interest payments are made semiannually. Using the effective interest method, what would be the journal entry for the first payment?

5) Joshua Corporation has current assets $45,000, long-term assets $230,000, current liabilities $36,000, long-term liabilities $100,000, NI $22,000. What is the debt to asset ratio?

6) A company issued a 5 year, 7% B/P with a face value of $300,000 at 103 when the market rate if 6%. Interest payments are made semiannually. Using the straight-line method, what would be the journal entry for the first payment?