1)

Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. If the monthly payment is $2,416.60, by how much will the carrying value decrease when the first payment is made on January 31, 2021?

A) $1,791.60

B) $625.00

C) $2,416.60

D) $1,000.60

2)

Camp Elim obtains a $125,000, 6%, five-year loan for a new camp bus on January 1, 2021. What amount will be recorded for interest expense for the first month's payment on January 31, 2021?

A) $625

B) $125

C) $7,500

D) $1,000

3)

When treasury stock is acquired, what is the effect on assets and stockholders' equity?

A) Assets and stockholders' equity increase.

B) Assets and stockholders' equity decrease.

C) Assets increase and stockholders' equity decrease.

D) Assets decrease and stockholders' equity increase.

4)

Under what section of the Statement of Cash Flows would you classify dividends paid on common stock?

A) Operating.

B) Investing.

C) Financing.

D) Noncash activity.

5)

A bond issue with a face amount of $500,000 bears interest at the rate of 7%. The current market rate of interest is 6%. These bonds will sell at a price that is:

A) Equal to $500,000.

B) More than $500,000.

C) Less than $500,000.

D) The answer cannot be determined from the information provided.