of its interest dates for so3 is to be used. In terest is 10) Cotton Com pany issued $500,000 of 7%, 10-year bonds on one effective annualrate of996. The effective-interest method of amortizaten of interest and amortization The joumal entry on the first interest payment date, to record the payment 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. s incurred in selling (for cash) office equipment having a book value of $110,000, the total the cash fows from investing activities section of the statement of cash flows is 11) If a gain of $12,000 i amount reported in A $98,000. $122,000. $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 $20,000, depreciation expense was $18,000 and a gsin on disposal of equipment of $9,000 was recorded. Net cash provided by operating activities in 2016 was A $120,000. B S118.000. C$101,000 D $109,000 E none of the above 13) Using the indirect method, ifequipment is sold at a gain, the amount of the gain is added in the operating activities section. A 8 amount of the gain is deducted in the operating activities section, C sale proceeds received are deducted in the operating activities section. D sale proceeds received are added in the operating activities section. none of the above 14) When equipment is sold for cash, the amount received is reflected as a cash A inflow in the operating section. B outflow in the operating section C inflow in the financing section. D inflow in the investing section. E none of the above