Norris Inc. will issue $200,000 in bonds on September 1. The annual interest rate is 10 percent and interest is paid on the bonds every June 30 and December 31. When the bonds are issued on September 1, how much cash will Norris collect?

Question 8 options:

	$200,000
	$210,000
	$203,333
	$220,000

Question 9 (5 points)

Japan JJJ Inc. manufacturers advanced striking bags. It offers a two-year warranty standard. In Year 1, Japan JJJ Inc. sold 700,000 bags and in year two it sold 500,000 bags. Past experience has told Japan JJJ Inc. that approximately 3 percent of the bags require repair at an average cost of $20 each. During Year 1, Japan JJJ Inc. actually spends $360,000 and during Year 2, Japan JJJ Inc. actually spends $325,000. What is the balance in the warranty liability account at the end of year 2?

Question 9 options:

	$36,000
	$35,000
	$0.00
	$360,000