10 Eddie Industries issues $953,000 of 8% bonds at 102. The amount of cash received from the sale is

a.$972,060

b.$953,000

c.$924,410

d.$1,029,240

11 The Merchant Company issued 10-year bonds on January 1. The 9% bonds have a face value of $103,000 and pay interest every January 1 and July 1. The bonds were sold for $124,229 based on the market interest rate of 7%. Merchant uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Merchant should record interest expense (round to the nearest dollar) of

$3,605

$5,590

$4,348

$4,635

During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $23,168 and $13,115. The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years. What is the total cost of vacation pay and pension rights to be recognized in the first year?

a.$62,513

b.$23,168

c.$13,115

d.$36,283

13 An employee receives an hourly rate of $23, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the first week of the calendar year are as follows: hours worked, 45; federal income tax withheld, $146; Social security tax rate, 6%; and Medicare tax rate, 1.5%; state unemployment tax, 5.4% on the first $7,000; federal unemployment tax, 0.8% on the first $7,000. What is the net amount to be paid to the employee? If required, round your answers to the nearest cent.

a.$864.56

b.$1,552.50

c.$1,092.50

d.$807.06

14 Excom sells radios and each unit carries a two-year replacement warranty. The cost of repair defects under the warranty is estimated at 5% of the sales price. During September, Excom sells 133 radios for $48 each. One radio is actually replaced during September. For what amount in September would Excom debit Product Warranty Expense?

a.$319

b.$20

c.$48

d.$2,660

15 A $284,000 bond was redeemed at 103 when the carrying amount of the bond was $295,076. The entry to record the redemption would include a

a.loss on bond redemption of $11,076.

b.loss on bond redemption of $2,556.

c.gain on bond redemption of $2,556.

d.gain on bond redemption of $11,076.

17 Taylor Bank lends Guarantee Company $107,067 on January 1. Guarantee Company signs a $107,067, 6%, 9-month, interest-bearing note. The entry made by Guarantee Company on January 1 to record the proceeds and issuance of the note is

a.Interest Expense4,818Cash102,249Notes Payable107,067

b.Cash107,067Notes Payable107,067

c.Cash111,885Interest Expense4,818Notes Payable107,067

d.Notes Payable107,067Interest Payable2,409Cash107,067Interest Expense2,409