What is the cash flow from financing activities from this bond in 2021? a) $31,500 outflow b) 32.551 inflow c) $271,007 inflow d) $350,000 outflow 6. What is the cash flow from operating activities from this bond in 20217 a) $31,500 outfow b) $32,551 inflow c) $271,007 inflow d) $239.507 outflow . Havier Corporation borrows $1 million from a bank on September I, Year I, by signing a 7.5 percent, nine-month Ae lor the amount borrowed plus accrued interest due nine months later on June 1, Year 2. Which of the following is recorded on December 31, Year 1? a) $20,000 credit to Cash b) $20,000 debit to Interest Expense c) $20,000 debit to Interest Payable d) $25,000 credit to Interest Payable 8. When bonds are issued at a premium, what happens to the carrying value and interest expense each period over the life of the bonds? a) Carrying value decreases and interest expense increases. b) Carrying value increases and interest expense decreases. c) Carrying value and interest expense increase. d) Carrying value and interest expense decrease. Smith Co. filed suit against Western, Inc., seeking damages for patent infringement. Western's legal counsel believes it is probable that Western will have to pay an estimated amount in the range of $75,000 to $175,000, with all amounts in the range considered equally likely. How should Western report this litigation? a) As a liability for $75,000 without disclosure of the range. b) As a liability for $125,000 with disclosure of the range. c) As a liability for $75,000 with disclosure of the range. 4) As a disclosure only. No liability is reported. What is the cash flow from financing activities from this bond in 2021? a) $31,500 outflow b) 32.551 inflow c) $271,007 inflow d) $350,000 outflow 6. What is the cash flow from operating activities from this bond in 20217 a) $31,500 outfow b) $32,551 inflow c) $271,007 inflow d) $239.507 outflow . Havier Corporation borrows $1 million from a bank on September I, Year I, by signing a 7.5 percent, nine-month Ae lor the amount borrowed plus accrued interest due nine months later on June 1, Year 2. Which of the following is recorded on December 31, Year 1? a) $20,000 credit to Cash b) $20,000 debit to Interest Expense c) $20,000 debit to Interest Payable d) $25,000 credit to Interest Payable 8. When bonds are issued at a premium, what happens to the carrying value and interest expense each period over the life of the bonds? a) Carrying value decreases and interest expense increases. b) Carrying value increases and interest expense decreases. c) Carrying value and interest expense increase. d) Carrying value and interest expense decrease. Smith Co. filed suit against Western, Inc., seeking damages for patent infringement. Western's legal counsel believes it is probable that Western will have to pay an estimated amount in the range of $75,000 to $175,000, with all amounts in the range considered equally likely. How should Western report this litigation? a) As a liability for $75,000 without disclosure of the range. b) As a liability for $125,000 with disclosure of the range. c) As a liability for $75,000 with disclosure of the range. 4) As a disclosure only. No liability is reported
