1) Which of the following is the correct entry for the sale of equipment at a loss?

A) Cash

Loss

Accumulated Depreciation

Equipment

B) Cash

Loss

Equipment

C) Cash

Accumulated Depreciation

Equipment

Loss

D) Cash

Equipment

Loss

2) Studley Company issued a five-year $5,000,000 bond that had a 8 percent face interest rate that is paid annually when the market interest rate was 10 percent. What are the proceeds of the bond issue?

A) $5,000,000

B) $4,376,889

C) $5,671,008

D) $4,385,543

3) Ellis Corporation wants to raise $500,000 by issuing a five year, noninterest-bearing note when the market rate is 8 percent compounded quarterly. What will the face value of the note be?

A) $336,486

B) $742,974

C) $734,664

D) $340,291