Heather Corporation issued $2,000,000, 10-percent, 10-year bonds on January 2, Year 2 . The bonds pay interest semiannually on January 1 and July 1 . The bonds were priced on the market to yield 8 percent. (CMA adapted, Dec 90 #12) Marla, Inc issued $6,000,000 of 12% bonds on December 1, Year 1, due on December 1, Year 6, with interest payable each December 1 and June 1 . The bonds sold for
$5,194,770 to yield 16%. If the discount is amortized by the effective interest method, Marla, Inc's interest expense for the fiscal year ended November 30, Year 2 related to its $6,000,000 bond issue will be
a. $623,372
b. $720,000
c. $835,610
d. $881,046
e. $623,046
C
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Which of the following accounts would be included in a post-closing trial balance?
A. Salaries Expense. B. Depreciation Expense-Equipment. C. Accounts Receivable. D. Dividends. E. Consulting Fees Earned.
Which of the following statements is incorrect in comparing activity-based management (ABM) and lean operations?
A) Both identify value-adding and nonvalue-adding activities B) ABM uses a simpler accounting system C) Both are activity-based systems D) Lean manufacturing reorganizes production activities into workcells
Describe some of the cultural “universals” identified from the GLOBE studies.
What will be an ideal response?
The commission method of payment
A. is tied to results projected in the sales plan. B. increases the amount of sales supervision needed. C. offers the most incentive for the salesperson. D. offers the most security for the salesperson. E. includes some salary and some commission.