10. Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $ 8%, 9 month note. The entry made by Trust Company on January 1 to record the proceeds and issu the note is: a. Cash 100,000 Notes Payable 100,000 b. Interest Expense Cash 8,000 92,000 Notes Payable 100,000 c. Cash 108,000 Interest Expense Notes Payable 8,000 108,000 d. Notes Payable100,000 6,000 Interest Payable Cash Interest Expense 100,000 6,000 11. An element of internal control is a. risk assessment b. journals c. controlling accounts d. subsidiary ledgers A company issued 5 year 8% bonds with a face value of S 10,000,000 and annual interest payments company received $9,500,000 in cash from investors. The journal entry to record the uissuance of t 12. is; a. Cash c. Cash 9,500,000 9,500,000 Discount 500,000 Bonds Payable 9,500,000 Bonds payable 000100000 9,500,000 Bonds payable 9,500,000 d. Cash 10,000,000 500,000 b. Cash Discount Bonds payable 10,500,000 Equipment with a cost of $130,000 has an estimated residual value of $10,000 and an estimated lif years or 12,000 hours. It is to be depreciated by the straight-line method. What is the amount of de 13. for the first full year, during which the equipment was used 3,300 hours? a. $24,000 b. $33,000 c. $35,750 d. $32,500 If management intends to sell an investment security in less than one year, it should be classified a. b. 14. trading none of the above c. d. held to maturity available for sale