500,000 of 7%, 10-year bonds on one of its interest dates for s431,850 to yied an 10) Cotton Company issued of annualrate of 9%. The effective-interest method of 7%, 10-y 7hterest method of amortizaion n t amortization is to be used. Interest is 31,850 to yleld an to record the payment of interest and amortization of discount interest payment date, The journal entry on the first will include a credit to Discount on Bonds Payable for $3,867 debit to Interest Expense for $45,000. entry on the A s debit to Interest Expense for $35,000. c D credit to Cash for $38,867 none of the above. E $1 of $12,000 is incurred in selling (for cash) office equipment having a book value of $110,000, the total in the cash flows from investing activities section of the statement of cash flows is 11) If a gain A $98,000. $122,000. $110,000. D $12,000. E none of the above. 12) Wilson Company reported net income of $105,000 for the year ended December 31, 2016. During the year inventories decreased by $15,000, accounts payable decreased by $20,000, depreciation gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2016 was expense was $18,000 and a A $120,000. $118,000. C $101,000. D $109,000. E none of the above. 13) Using the indirect method, if equipment is sold at a gain, the A amount of the gain is added in the operating activities section. B amount of the gain is deducted in the operating activities section. C sale proceeds received are deducted in the operating activities section. sale proceeds received are added in the operating activities section. E none of the above. 14) When equipment is sold for cash, the amou nt received is reflected as a cash A inflow in the operating section. B outflow in the operating section. C inflow in the financing section. D inflow in the investing section. E none of the above. 28) Cleary, Wasser, and Nolan formed a partnership and $200,000, balance each year, annual loss in a ratio of 20% for partner withdrew $12,000 for personal What was Cleary's capital balance at the end of 2010 respectively. For division of on January 1, 2010, with investments of $100,000, $150,000 income, they agreed to (1) interest of 10% of beginning capital for Cleary, or $10,000 to Wasser, and (3) sharing the remainder of the income or and 40% each for Wasser and Nolan. Net income was $150,000 in 2010, Each use during 2010. A $100,000 $117,000 $119,000 D $153,000 E none of the above. 29)Beck, the active partner in Beck & Cris, receives an annual bonus of 25% of partnership net income after deducting the bonus. For the year ended December 31, partnership net income betore $300,000. Beck's bonus for the year should be the bonus amounted to A $56,250 B $60,000 $75,000 D $62,500 E none of the above. 30) Phil Grady, a partner in an accounting firm, decided to withdraw from the partnership. Grady's share of the partnership profits and losses was 20%. Upon withdrawing from the partnership, he was paid S74.000 in final settlement of his interest. The total of the partners' capital accounts before recognition of partnership goodwill prior to Grady's withdrawal was $210,000. After his withdrawal, the remaining partners' capital accounts, excluding their share of goodwill, totaled $160,000. The total agreed upon goodwill of the firm was A $120,000 $160,000 $210,000 D $250,000 E none of the above