QUESTION 48 For Zach Company's bonds, if they were issued the first day of 2019 (8% face priced to yield 12%) and the first year's interest was paid on December 31, 20198, the entry to record that interest would include: A. A debit to interest expense of $8,000.00 B. A debit to bond discount of $ 1,287.89 C. A credit to cash of $ 8,771.09 D. A credit to interest payable of $8,000.00 E. A credit to bond discount of $ 1,287.89 OO QUESTION 49 Which account will Never be included in a closing journal entry? A. Retained Earnings O B. Interest expense OC. Allowance for Doubtful Accounts O D. Cost of Sales O E. Sales You have noticed an ad listing a motel for sale. After doing some research, you estimate that the 20 rooms can be rented for $60 per day with an occupancy rate of 80% per year. You have found a management company that will run the motel and take care of daily housekeeping for 10% of the rents. You estimate that repairs and maintenance costs will be $3,000 per month and that other cash expenses will be $4,000 per month. You plan to sell the motel at the end of the third year for $500,000. How much are annual net cash flows? Ignoring taxes, how much would you pay for the motel to earn exactly 20% on your investment? A. none of the listed choices B. $ 487,356 OC. $776,708 OD. $ 289,360 O E. $ 231,360 QUESTION 51 You have noticed an ad listing a motel for sale. After doing some research, you estimate that the 20 rooms can be rented for $60 per day with an occupancy rate of 80% per year. You have found a management company that will run the motel and take care of daily housekeeping for 10% of the rents. You estimate that repairs and maintenance costs will be $3,000 per month and that other cash expenses will be $4,000 per month. You plan to sell the motel at the end of the third year for $500,000. How much are annual net cash flows? What would be the annual net cash flows for the motel? A. $ 119,040 B. $ 58,948 C. $ 262,336 D. $ 231,360 E. none of the listed choices