38) On January 1, a company issues bonds dated January I with a par value of $360,000. The bonds nd interest is paid semiannually on June 30 and market rate is 8% and the bonds are sold for S374.613. The journal entry to mature in 5 years. The contract rate is 9%, a record the principle payback when the bond matures at the end of year 5 is: A) Debit Bond Payable $374,613; Credit Cash $374,613 B) Debit Bonds Payable $360,000; debit Bond Interest Expense $14,613; credit Cash $374,613. C) Debit Cash S360,000; debit Premium on Bonds Payable $14,613; credit Bonds Payable S374,613. D) Debit Cash $374,613; credit Bonds Payable $374,613 E) Debit Bond Payable S360,000; Credit Cash $360,000 39) An analysis that balance and the balance reported on the bank statement is a(n): A) Internal audit. B) Trial reconciliation. explains differences between the checking account balance according to the book C) Bank audit. D) Bank reconciliation. E) Analysis of debits and credits. 40) Identify the account below that is classified as a liability in a company's chart of accounts A) Accounts Receivable B) Supplies C) Salaries Expense D) Unearned Revenue E) Cash 41) A company estimates that warranty expense will be 2% ofsales. The company's sales for the current period are $269,000. The current period's entry to record the waranty expense is A) Debit Warranty Expense $5380 credit Estimated Warranty Liability $5380. B) Debit Estimated Warranty Liability $5380 credit Warranty Expense S580. C) Debit Warranty Expense $5380 credit Sales $5380. D) Debit Estimated Warranty Liability $5380 credit Cash $5380. E) No entry is recorded until the items are returned for warranty repairs