Christie and Jergens formed

a partnership with capital contributions of $360,000 and $460,000, respectively. Their partnership agreement calls for Christie to receive a $66,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner's beginning capital investments. The remaining income or loss is to be divided equally. If the net income for the current year is $153,000, then Christie and Jergens's respective shares are:

$104,500; $48,500.

$102,000; $46,000.

$76,500; $76,500.

$41,000; $112,000.

$67,171; $85,829.

Chair Company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semi-annually. The current market rate is 8%. The journal entry to record each semiannual interest payment is:

Debit Bond Interest Expense $23,200; credit Cash $23,200.

Debit Bond Interest Expense $46,400; credit Cash $46,400.

Debit Bond Interest Expense $38,667; credit Cash $38,667.

Debit Bond Interest Expense $530,000; credit Cash $530,000.

No entry is needed, since no interest is paid until the bond is due.

Howard Corporation sold 16,000 shares of its $10 par value common stock at a cash price of $11 per share. The entry to record this transaction would include:

A debit to Cash for $160,000.

A credit to Common Stock for $176,000.

A credit to Common Stock for $160,000.

A debit to Paid-in Capital in Excess of Par Value, Common Stock for $16,000.

A credit to Paid-in Capital in Excess of Par Value, Common Stock for $176,000.

Pen Company issued 120 shares of $100 par value common stock for $14,200 cash. The total amount of paid-in capital in excess of par is:

$100.

$1,200.

$2,200.

$12,000.

$14,200.