1. On July 1, 2015, Wilcutts Co. issued 1,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2015 and mature on April 1, 2025. Interest is payable semiannually on April 1 and October 1. What amount did Wilcutts receive from the bond issuance?

5. Sharon Trading Stamp Co. records stamp service revenue and provides for the cost of redemptions in the year stamps are sold to licensees. Sharons past experience indicates that only 80% of the stamps sold to licensees will be redeemed. Sharons liability for stamp redemptions was $7,500,000 at December 31, 2014. Additional information for 2015 is as follows:

Stamp service revenue from stamps sold to licensees $5,000,000

Cost of redemptions $3,400,000

If all the stamps sold in 2015 were presented for redemption in 2016, the redemption cost would be $2,500,000. What amount should Sharon report as a liability for stamp redemptions at December 31, 2016?

a. $9,100,000.

b. $6,600,000.

c. $6,100,000.

d. $4,100,000.

3. On September 1, 2016, Demich Co. issued a note payable to National Bank in the amount of $2,400,000, bearing interest at 12%, and payable in three equal annual principal payments of $800,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2017. At December 31, 2016, Demich should record accrued interest payable of

a. $58,000.

b. $54,000.

c. $64,000.

d. $49,500.

4. Lewis Companys salaried employees are paid biweekly. Occasionally, advances made to employees are paid back by payroll deductions. Information relating to salaries for the calendar year 2016 is as follows:

12/31/15 12/31/16

Employee advances $12,000 $ 18,000

Accrued salaries payable 75,000 ?

Salaries expense during the year 650,000

Salaries paid during the year (gross) 625,000

At December 31, 2016, what amount should Lewis report for accrued salaries payable?

a. $100,000.

b. $84,000.

c. $92,000.

d. $55,000.