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29) On January 1, a company issues bonds dated January I with a par value of S370,000. The bonds mature in 5 years. The contract

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29) On January 1, a company issues bonds dated January I with a par value of S370,000. The bonds mature in 5 years. The contract rate is l 1%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $384,280. The journal entry to record the issuance of the bond is: A) Debit Cash $384,280;, credit Discount on Bonds Payable S14.280; credit Bonds Payable $370,000. B) Debit Cash $370,000; debit Premium on Bonds Payable $14,280, credit Bonds Payable S384,280 C) Debit Cash $384,280; credit Premium on Bonds Payable $14.280, credit Bonds Payable $370,000. D) Debit Cash $384,280; credit Bonds Payable $384,280. E) Debit Bonds Payable $370,000; debit Bond Interest Expense $14,280, credit Cash $384,280. 30) A company had a beginning balance in retained earnings of $44,800. It had net income of $7800 and paid out cash dividends of $6075 in the current period. The ending balance in retained earnings equals: A) $46,525. E) S43,075. D) $13,875 B) S58,675. C)S6075. . 31) In preparing a company's statement of cash flows for the most recent year using the indirect method following information is available: S 74,000 29,000 Net income for the year was Accounts payable decreased by Accounts receivable increased by Inventories increased by Depreciation expense was 36,000 16,000 52,000 Net cash provided by operating activities was: A) $71,000. B) S45,000. C)$74,000. D)S103,000. E)S135,000 32) A machine with a cost of $1498,000 nd accumulated depreciation of $103.00 is sold for $9,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: A) $14,000. B) S59,000. C) $45,000. D) Zero. This is an operating activity E) Zero. This is a financing activity

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