1. On January 1, the Elias Corporation issued 12% bonds with a face value of $70,000. The bonds are sold for $67,900. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, ten years from now. Elias Corporation records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is

$2,100

$8,400

$8,610

$700

2.

On June 8, Williams Company issued an $78,000, 11%, 120-day note payable to Brown Industries. Assuming a 360-day year, what is the maturity value of the note? Round your answer to the nearest whole dollar.

$86,580

$80,860

$78,000

$8,580

3.

On January 1, Vermont Corporation had 38,100 shares of $9 par value common stock issued and outstanding. All 38,100 shares had been issued in a prior period at $21 per share. On February 1, Vermont purchased 1,120 shares of treasury stock for $24 per share and later sold the treasury shares for $22 per share on March 1.

The journal entry to record the purchase of the treasury shares on February 1 would include a

debit to Treasury Stock for $26,880

credit to a gain account for $3,360

credit to Treasury Stock for $26,880

debit to a loss account for $3,360

4.

Assume the following sales data for a company:

	Current year	$858,277
	Preceding year	525,079

What is the percentage increase in sales from the preceding year to the current year?

63.5%

102.3%

38.8%

24.6%

5.

Lee Company has the following information for the pay period of December 1531:

Gross payroll	$18,397		Federal income tax withheld	$2,291
Social security rate	6%		Federal unemployment tax rate	0.8%
Medicare rate	1.5%		State unemployment tax rate	5.4%

Assuming no employees are subject to ceilings for taxes on their earnings, Salaries Payable would be recorded for

$18,397.00

$13,585.61

$14,965.39

$14,726.22