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On January 1,2024 , Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1,2034 . The bonds
On January 1,2024 , Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1,2034 . The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31. The 12/31/24 bond carrying value is approximately: Select one: a. $3,387 b. $3,410 c. $3,385 d. $3,332 e. $3,360 Glen Arbor Corporation sells DVD players. The corporation also offers its customers a 4-year service-type warranty contract. On 1/1/24, Glen Arbor sold 20,000 warranty contracts at \$99 each and spent $180,000 servicing warranties during 2024 and $200,000 servicing warranties in 2025 . Estimated warranty expense for the four-year period is $800,000. The Sales Warranty (Deferred Revenue) approach is applicable. Assume straight-line amortization. What is the Unearned Warranty Revenue balance at 12/31/25? Select one: a. $1,485,000 b. $990,000 c. $1,600,000 d. $610,000 e. $1,980,000
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