6. Wisconsin Bank lends Local Furniture Company $140,000 on November 1. Local Furniture Company signs a $140,000, 33%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is:

A.debit Interest Expense and credit Interest Payable for $700

B.debit Interest Payable and credit Cash for $700

C.debit Interest Expense and credit Cash for $700

D.debit Interest Payable and credit Interest Expense for $ 700

7. Illinois Bank lends Lisle Furniture Company $100,000 on December 1. Lisle Furniture Company signs a $100,000, 88%, 4month note. The total cash paid at maturity of the note is: (Round your final answer to the nearest dollar.)

A.$104,000.

B.$102,666.

C.$100,000.

D.$108,000.

8. Kathy's Corner Store has total cash sales for the month of $37,000 excluding sales taxes. If the sales tax rate is 88%, which journal entry is needed? (Ignore Cost of Goods Sold.)

A. debit Cash $34,040, debit Sales Tax Receivable for $2,960

and credit Sales Revenue for $37,000

B. debit Cash $39,960, credit Sales Revenue $37,000

and credit Sales Tax Payable $2,960

C. debit Cash $39,960, credit Sales Revenue $39,960

D.debit Cash $37,000 and credit Sales Revenue $37,000

9. Montana Company sold merchandise with a retail price of $29,000 for cash. Montana Company is required to collect 33% state sales tax. The total cash received from customers was:

A.$29,870.

B.$870.

C.$28,130.

D.$29,000.

10. On January 1, 2018, bonds with a face value of $93,000 were sold. The bonds mature on January 1, 2028. The face interest rate is 88%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 12%. What is the market price of the bonds on January 1, 2018? The present value of $1 for 20 periods at 6% is 0.312 The present value of an ordinary annuity of $1 for 20 periods at 6% is 11.47. The present value of $1 for 20 periods at 4% is 0.456. The present value of an ordinary annuity of $1 for 20 periods at 4% is 13.59. (Round your final answer to the nearest dollar.)

A.$71,684

B.$92,963

C.$93,000

D.$96,720