1.

a.Microsoft Inc. issues a 7% 10-year bond with a par value of $50 million on 6/30/2023. The market rate of interest for similar bonds is 3%. What is true of Microsoft Inc.'s adjusting entry on 12/31/2023?

b.Apple Inc. recognizes revenue using percentage of completion for long-term contracts. The following information pertain to a contract Apple started working on in 2023:

Cost incurred during the year: $800,000.

Estimated cost until completion: $3,200,000.

Gross profit recognized in 2023: $133,333

What is the total revenue Apple will receive for this contract?