Question 29 2 pts Hall Company sells merchandise with a one-year warranty. In the current year, sales consisted of 4,500 units. It is estimated that warranty repairs will average $10 per unit sold, and 30% of the repairs will be made in the current year and 70% in the next year. In the current year's income statement, Hall should show warranty expense of $45,000 $13,500 $31,500 $0 Question 30 2 pts If the market rate of interest is 7%, the price of 6% bonds paying interest semiannually with a face value of $500,000 will be O equal to $500,000 O greater than $500,000 less than $500,000 O greater than or less than $500,000, depending on the maturity date of the bonds Question 31 2 pts Bonds that are subject to retirement prior to maturity at the option of the issuer are called debentures callable bonds early retirement bonds options Question 32 2 pts If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is $2,060,000 $2,000,000 $2,100,000 $1,940,000 Question 33 2 pts If the straight-line method of amortization of bond premium or discount is used, which of the following statements is true? Annual interest expense will increase over the life of the bonds with the amortization of bond premium. Annual interest expense will remain the same over the life of the bonds with the amortization of bond discount. Annual interest expense will decrease over the life of the bonds with the amortization of bond discount. Annual interest expense will increase over the life of the bonds with the amortization of bond discount. Question 34 2 pts The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be debit Bonds Payable, credit Cash debit Cash and Discount on Bonds Payable, credit Bonds Payable debit Cash, credit Premium on Bonds Payable and Bonds Payable debit Cash, credit Bonds Payable