Use the following information to answer the questions below.

Klein Interiors has the following account balances at the end of the year.

Account	Balance
Equipment	$ 78,000
Accounts Payable	12,000
Common Stock	20,000
Service Revenue	62,000
Cash	8,000
Retained Earnings	5,000
Salaries Expense	38,000
Notes Payable	25,000
Accounts Receivable	4,000
Goodwill	50,000
Bonds Payable	1,000,000

Compute total assets to report on Balance Sheet: _______________

Compute total liabilities to report on Balance Sheet: _______________

Match the following

33.		The mixture of liabilities and stockholders equity a business uses.	A.	Market interest rate
34.		The stated interest rate is more than the market interest rate.	B.	Stated interest rate
35.		The stated interest rate equals the market interest rate.	C.	Bonds issued at a discount
36.		The stated interest rate is less than the market interest rate.	D.	Bonds issued at face value
37.		The rate quoted in the bond contract used to calculate the cash payments for interest.	E.	Bonds issued at a premium
38.		The true interest rate used by investors to value a bond.	F.	Capital structure

Pizza Pier issues 7%, 10year bonds with a face amount of $80,000 for $80,000 on January 1, 2018. Interest is paid annually on December 31. Record the bond issue if the market interest rate for bonds of similar risk and maturity is 7%.

For the bond issue recorded in the previous question, record the first interest payment on December 31, 2018. Round amounts to the nearest cent.

Pizza Pier issues 7%, 10year bonds with a face amount of $80,000 for $75,000 on January 1, 2018. Interest is paid annually on December 31. Record the bond issue if the market interest rate for bonds of similar risk and maturity is 6%.