E. Junk bonds QUESTION 16 On December 1, Milton Company borrowed $300,000, at 8% annual interest, from the Tennessee National Bank. Interest is paid when the loan matur from the issue date. What is the adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end? A. debit Interest Payable, $2,000; credit Interest Expense, $2,000. B. debit interest Expense, $2,000; credit Interest Payable, $2,000. C. debit Interest Expense, $2,000; credit Cash $2,000. D. debit interest Expense, 54,000; credit Interest Payable, $4,000 E. debit interest Expense, $24,000; credit Interest Payable, $24,000. QUESTION 17 Adobe Genuine Software Integrity Service SO DO 3 5 6 W E R T E. $14.400 QUESTION 25 Mohr Company purchases a machine at the beginning of the year at a cost of $24,000. The machine is depreciated using the units-of-production method. The company estimates it will use the machine 5 years, during which time it anticipates producing 40,000 units. The machine is estimated to have a $4,000 salvage value. The company produces 9,000 units in year 1 and 6,000 units in year 2. Depreciation expense in year 2 is: O A. $4,000 OB. $4,500 OC. $9,600. OD. $3,000 O E. $14,400. QUESTION 26 Adobe Genuine Software Integrity Service 888 2 3 4 % 5 6 7 E R T