On April 1, 2003, Timi Corporation issued $4,000,000, 10-year, 8% bonds, dated January 1, 2003 at 100 plus accrued interest. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on April 1, 2003 is a. Cash. . .4,000,000 Bonds Payabl 4,000,000 b. Cash. ...4,080,000 4,080,000 Bonds Payabl. c. Interest Expense Cash ....4,000,000 4,080,000 Bonds Payabl ..4,080,000 d. Cash. 4,000,000 80,000 Bonds Payable Bond Interest Payable he market rate of interest" 2H Om July 3, 2006, Elton Company sold goods on account to Radar Enterprises with terms of 210, n30 The goods had a cost of $360 and a selling price of $720. On July 7, Radar returned $100 of goouds because they did not meet specifications. On July 29, Radar Company paid the in full. Boch Elton and Radar use a perpetual inventory system. the returm of merchandise will include: for $100. The entry made by Elton to record a a debit to Merchandise Inven h. a credit to Accounts Receivable for $100. c. a debit to Sales Revenue for $100 d. a debit to Accounts Payable for $100. 24 Which of the following accounts is not closed to Income Summary? a Cost of Goods Sold c Sales d. Sales Discounts 25.0m October 4, 2005, Terry Corporation had credit sales transactions of $2,800 from merchandise having cost $1,900. The entries to record the day's credit transactions include a debit of $2,800 to Merchandise Inventory b. credit of $2,800 to Sales c. debit of S1,900 to Merchandise In d. credit of S1,900 to Cost of Goods Sold. 26. Clark ny's sales were $480,000, sales returns and allowances were $30,000, and cost of goods sold was $270,000. The gross profit rate was a.60%. b.40%. . 37.5%. d. 56.3%. 27.All of the following are contra revenue accounts except a sales b. sales allowances. c. sales discounts. d. sales retums. 28 The sales revenue section of an income statement for a retailer would not include a. Sales discounts. b. Sales. c. Net sales. d. Cost of goods sold. 29.With respect to the income statement, a. contra-revenue b. sales discounts increase accounts do not appear on the income statement. the amount of sales. accounts increase the amount of operating expenses. 30 During the year 200. Toronto Enterprises earned revenues of $45,000, had expenses of $25,000 purchased assets with a cost of $5,000 and paid dividends to the shareholders of d. sales discounts are included in the calculation of gross profit. $3,000. Net income for the year is