Acquired long term investment by issuing long term debt

Question 63 options:

Financing activities section

Schedule of noncash investing and financing transactions

Operating activities section

Investing activities section

The total interest cost on forty six (46), ten year, 6% $1,000 bonds that are issued at 98 is:

Question 67 options:

	$28,520
	$26,680
	$28,060
	$27,600

Pelican Corporation issued $200,000 of 20 year, 6% bonds at 96 on one of its semiannual interest dates. The straight line method of amortization is to be used. After one year (two interest payments), what is the carrying value of the bond?

Question 68 options:

	$192,000
	$192,400
	$200,000
	$200,400

When the straight line method of amortization is used for a bond premium, the amount of interest expense for the interest period is calculated by:

Question 69 options:

Adding the amount of the premium amortization for the period to the amount of cash paid for interest during the period

Deducting the amount of the premium amortization for the period from the amount of the cash paid for interest during the period

Multiply the carrying value of the bonds by the effective interest method

Multiply the face value of the bonds by the face interest rate.

The first budget to be made is the:

Question 27 options:

	direct labor budget
	cash budget
	production budget
	sales budget

As production decreases, what would you expect to happen to fixed cost per unit?

Question 28 options:

	Increase
	Decrease
	Remain the same
	Either increase or decrease, depending upon the variable cost

Sleep Tight, Inc. manufactures mattresses. The estimated number of mattress sales for the first three months of 2020 is as follows:

January 40,000

February 50,000

March 60,000

Finished goods inventory at the end of 2019 was 12,000. On the average, 25% of the mattresses are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit.

What would be the sales budget for March?

Question 29 options:

	$7,200,000
	$8,000,000
	$6,750,000
	$9,000,000

A taxi fare with a base price plus a mileage charge would be an example of a:

Question 33 options:

	fixed cost
	variable cost
	mixed cost
	standard cost