1. Lace Ltd. sold five-year, 12% bonds, face value $500,000 on January 1, 2014. Interest is paid semiannually on June 30th and December 31st . The bonds were sold for $538,500 to yield 10%. What is Laces interest expense for 2014 if Lace using the effective interest method to amortize bond discounts and premiums? A $50,000 B $53,696 C $53,850 D $60,000

2.Pike Inc. issued $500,000, 9% bonds on July 1, 2014 with a maturity date of July 1, 2024. The bonds were issued for $469,500 to yield 10%. Pike uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. What should the balance of the Bonds Payable account be at June 30, 2016?[CPA adapted] A $500,000 B $493,900 C $473,595 D $471,450

3. Tim Hortons Price/Earnings Ratio (P/E ratio) was 30.8:1 in December 2014 and Burger King Worldwide Inc.s P/E ratio was 71.5:1. What is the most plausible explanation for this situation? A. The price of a Tim Hortons share in the secondary market is $30.80 B. Tims is a riskier investment than Burger King C. Burger King is a riskier investment than Tims D. The return for every $1 invested in Tims is 30.8%

4. The indirect method was used to prepare the Operating Activities section of a Cash Flow Statement. It included the addition of an amount for Accounts Receivable (A/R) to Net Income. What does this adjustment for A/R tell us? A The A/R balance decreased B The A/R balance increased C Sales decreased D Sales increased

5. On July 1, 2014, Cee Corp. issued 1,000 of its no par common shares and 2,000 of its no par preferred shares for a lump sum of $100,000. At this date Cee's common shares were selling for $48 per share and the preferred shares for $36 per share. Using the relative fair value method, the amount of the proceeds allocated to the preferred shares account should be [CPA adapted] A. $50,000. B. $55,000. C. $60,000. D. $72,000.