[The following information applies to the questions displayed below.]On January 1, Year 1, Jones Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method.What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1?
A. $15,000
B. $16,200
C. $21,000
D. $13,800
Answer: B
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On January 1, 20x5, Dove Valley Corporation had 100,000 shares of $10 par value common stock issued and outstanding. All 100,000 shares had been issued in a prior period at $30 per share. On February 1, 20x5, Dove Valley purchased 4,000 shares of treasury stock for $36 per share and later sold the treasury shares for $40 per share on March 2, 20x5. The entry to record the sale of the treasury
shares on March 2, 20x5, is : A) Cash 160,000 Common Stock 144,000Retained Earnings 16,000 B) Cash 160,000 Treasury Stock-Common 144,000Paid-in Capital, Treasury Stock 16,000 C) Cash 160,000 Treasury Stock-Common 144,000Retained Earnings 16,000 D) Cash 160,000 Treasury Stock-Common 144,000Gain on Treasury Stock 16,000
Which of the following ratios measures short-term solvency?
a. Current ratio b. Creditors' equity to total assets c. Return on investment d. Total asset turnover
A job shop manager wants to determine the proportion of time the workers are idle. The shop employs two types of workers. Type 1 includes three workers and Type 2 includes two workers
The manager suspects that the proportion of idle time is about 20 percent for Type 1 workers and 15 percent for Type 2 workers. If the manager wants a 95 percent confidence level (z = 1.96 ) and a degree of precision of + 0.05, how many trips will the observers have to take through the group? A) fewer than or equal to 80 B) greater than 80 but fewer than or equal to 90 C) greater than 90 but fewer than or equal to 100 D) greater than 100
The United States today is now a post-industrial society
Indicate whether the statement is true or false