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Provide calculations or explanation (if its possible) QUESTION 29 On January 1, 2022, Entity B issued $500,000, 8% bonds payable at 104 in order to
Provide calculations or explanation (if its possible)
QUESTION 29 On January 1, 2022, Entity B issued $500,000, 8% bonds payable at 104 in order to buy new equipment. The bonds mature in 5 years and pay interest annually on December 31. The journal entry to record issuance of the bonds includes: O a debit to bond interest expense of $36,000 O a credit to bonds payable of $520,000 O a debit to cash of $520,000 0 debit to discount on bonds payable of $20,000 QUESTION 30 Which situation below might raise concerns about a company's quality of earnings? The financial statements are prepared in accordance with U.S. generally accepted accounting principles. O Revenue is recognized when performance obligations are satisfied. O Restructuring costs (which only benefit one period) are capitalized and then amortized over five years. The same accounting principles are used from year to year. QUESTION 31 Entity L reported net income of $150,000 for the current year and uses the indirect method to report operating activities cash flow. Entity L reported a gain on the sale of used equipment of $40,000. Choose the appropriate category on the statement of cash flows to report the gain. O Cash Flows From Operating Activities-Add to Net Income O Cash Flows From Operating Activities-Deduct from Net Income O Cash Flows From Investing Activities O Cash Flows From Financing Activities O Non-cash QUESTION 32 Entity F borrowed 522,000 on October 1, 2022 issuing a 7-month, 12% interest-bearing note to the bank, with principal and interest payable at maturity. At December 31, 2022, what adjusting entry must Entity F make to accrue interest expense? O Dr. Interest expense 660 Cr. Cash 660 O Dr. Interest expense 220 Cr. Cash 220 O Dr. Interest expense 660 Cr. Interest payable 660 O Dr. Interest expense 220 Cr. Interest payable 220Step by Step Solution
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