issued S 00,000 of 7% 10 year bonds on one of its interest dates for $431,850 to yield an of 9%. The effective-interest method of amortization is to be used. Interest is paid annually 10) Cotton Company effective annual rate The yournal entry on the first interest payment date, to record the payment of interest and amortization of will include a A credit to Discount on Bonds Payable for $3,867 B debit to Interest Expense for $45,000. C debit to Interest Expense for $35,000. D credit to Cash for $38,867. E none of the above. 11) If a gain of $12,000 is incurred in selling (for cash) office equipment having a book amount reported in the cash flows from investing activities section of the statement of cash flows is A $98,000. B $122,000. C $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 S 20.000, depreciation expense was si8,00 and gain on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2016 was A $120,000. 8 $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. 8 amount of the gain is deducted in the operating activities section sale proceeds received are deducted in the operating activities section. C sale proceeds received are added in the operating activities section. D E none of the above. 14) When equipment is sold for cash, the amount received is reflected as a cash inflow in the operating section. A outflow in the operating section. 8 inflow in the financing section. inflow in the investing section. none of the above