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31. Assume that the total issue price for a $500,000 face-value bond issue with semi-annual interest payments has been correctly calculated to be $578,450. The

31. Assume that the total issue price for a $500,000 face-value bond issue with semi-annual interest payments has been correctly calculated to be $578,450. The market interest rate for bond issues of similar risk is 6%, compounded semi-annually. How much interest expense will accrue and be recorded at the end of the first 6 month period?

a. $30,000.00

b. $34,707.00

c. $17,353.50

d. $15,000.00

Wilson Co. sold $500 of goods to Donner Co. with terms of 2/10, n/30. If Wilson receives payment for the goods from Donner within 10 days, Wilson will record a

a. debit to Accounts Receivable for $500.

b. credit to Cash for $490.

c. debit to Sales Discounts for $10.

d. credit to Sales Discounts for $10.

The maturity value of a $3,000, 60-day, 6 percent note would be (use a 365-day year):

a. $3,029.59

b. $3,000.00

c. $3,042.68

d. $3,032.43

34.

Which of the following accounts would be found in an accrual adjusting entry?

a. Prepaid Insurance

b. Unearned Revenue

c. Supplies

d. Wages Payable

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