On January 1, 2018, bonds with a face value of $119,000 were sold. The bonds mature on January 1, 2028. The face interest rate is 8%. The bonds pay interest semiannually on July 1 and January 1. The market rate of interest is 10%. What is the market price of the bonds on January 1, 2018? The present value of $1 for 20 periods at 5% is 0.377. The present value of an ordinary annuity of $1 for 20 periods at 5% is 12.462. The present value of $1 for 20 periods at 4% is 0.456. The present value of an ordinary annuity of $1 for 20 periods at 4% is 13.59. (Round your final answer to the nearest dollar.) O A. $118,952 O B. $119,000 O C. $123,760 OD. $104,182 The following data was extracted from the records of Today Company: Sales revenue Beginning inventory Purchases 600 units at $35 per unit 70 units at $20 per unit 600 units at $30 per unit What is the gross profit using the LIFO method? O A. $3,000 O B. $19,600 O c. $18,000 OD. $21,000 Land, a building and equipment are acquired for a lump sum of $1,000,000. The market values of the land, building and equipment are $500,000, $600,000 and $300,000, respectively. What is the cost assigned to the equipment? (Do not round any intermediary calculations, and round your final answer to the nearest dollar.) O A. $1,000,000 O B. $214,286 OC. $300,000 OD. $0 On November 1, 2018, a company using accrual accounting, pays $900,000 for a television advertising campaign. Commercials will run evenly over six months beginning on November 1, 2016. How much Advertising Expense will be reported on an income statement prepared for the year ended December 31, 2018? O A. $450,000 OB. $900,000 OC. $300,000 OD. $600,000 A company completed the following transactions during the month of October: 1. Purchased office supplies on account, $4,400. II. Provided services for cash, $22,000. III. Provided services on account, $13,000. IV. Collected cash from a customer on account, $8,200. V. Paid the monthly rent of $13,000. What was the company's net income for the month? O A. $13,000 O B. $48,000 O c. $22,000 OD. $35,000 Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018. Of the $200,000 on account, $89.000 was collected in cash in 2018 and the rest in 2019. The company incurred expenses of $145,000 in 2018 and made payments of $100,000 towards the expenses in 2018. What is net income in 2018 under accrual accounting? O A. $250,000 O B. $350,000 O C. $205,000 OD. $55,000
