1. What is the cost of the land, based upon the following data?

Land purchase price	$175,840
Broker's commission	19,231
Payment for the demolition and removal of existing building	4,523
Cash received from the sale of materials salvaged from the demolished building	2,610

$

2. On May 10, a company issued for cash 2,000 shares of no-par common stock (with a stated value of $3) at $17, and on May 15, it issued for cash 2,000 shares of $16 par preferred stock at $61.

Journalize the entries for May 10 and 15, assuming that the common stock is to be credited with the stated value. If an amount box does not require an entry, leave it blank.

May 10
May 15

3. On June 1, Davis Inc. issued an $60,800, 8%, 120-day note payable to Garcia Company Assume that the fiscal year of Garcia ends June 30. Using a 360-day year in your calculations, what is the amount of interest revenue recognized by Garcia in the following year? When required, round your answer to the nearest dollar.

a. $4,864

b. $1,230

c. $405

d. $811

4. On June 8, Williams Company issued an $83,765, 8%, 120-day note payable to Brown Industries. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar.

a. $6,701

b. $83,765

c. $90,466

d. $85,999

5. A used machine with a purchase price of $41,809, requiring an overhaul costing $9,833, installation costs of $6,615, and special acquisition fees of $32,417, would have a cost basis of

a. $139,539

b. $90,674

c. $51,642

d. $41,809

6. When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at

a. their face value

b. a discount

c. their maturity value

d. a premium

7. On July 8, Jones Inc. issued an $82,100, 9%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends July 31. Using a 360-day year, what is the amount of interest expense recognized by Jones in the current fiscal year? When required, round your answer to the nearest dollar.

a. $944

b. $7,389

c. $472

d. $1,416

8. A building with an appraisal value of $127,085 is made available at an offer price of $150,980. The purchaser acquires the property for $37,892 in cash, a 90-day note payable for $24,353, and a mortgage amounting to $57,782. The cost basis recorded in the buyer's accounting records to recognize this purchase is

a. $150,980

b. $120,027

c. $127,085

d. $113,088