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60. Nula provided the following information for the year.

60. Nula provided the following information for the year.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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60. Nula provided the following information for the year. $ drawings for the year 3900 net assets at 1 January 2016 60 500 net assets at 31 December 2016 72 275 What was the profit or loss for the year? a. $7875 loss b. $7875 profit c. $15 675 loss d. $15 675 profit GOOD LUCK 15
Transcribed Image Text:60. Nula provided the following information for the year. $ drawings for the year 3900 net assets at 1 January 2016 60 500 net assets at 31 December 2016 72 275 What was the profit or loss for the year? a. $7875 loss b. $7875 profit c. $15 675 loss d. $15 675 profit GOOD LUCK 15
56. The market interest rate: a. is the contractual interest rate used to determine the amount of cash interest paid by the borrower. b. is listed in the bond indenture. c. is the rate investors demand for loaning funds. d. More than one of the above is true 57. MK Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of semiannual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: a. credit of $3,745 to Loss on Bond Redemption. b. debit of $3,745 to Premium on Bonds Payable. c. credit of $1,255 to Gain on Bond Redemption. d. debit of $5,000 to Premium on Bonds Payable. 58. Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year? a. $16,567 b. $49,700 c. $34,670 d. $346,700. 59. Iqra is a business consultant. She provided the following information at the end of her first financial year on 30 April 2017. $ fees earned during the year 244 000 fees owed by clients at 30 April 2017 22000 cost of computer equipment purchased 26 000 loan interest paid 4000 other business expenses 142000 What was Iqra's profit for the year? a. $72 000 b. $94 000 c. $98 000 d. $120 000 14
Transcribed Image Text:56. The market interest rate: a. is the contractual interest rate used to determine the amount of cash interest paid by the borrower. b. is listed in the bond indenture. c. is the rate investors demand for loaning funds. d. More than one of the above is true 57. MK Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of semiannual interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: a. credit of $3,745 to Loss on Bond Redemption. b. debit of $3,745 to Premium on Bonds Payable. c. credit of $1,255 to Gain on Bond Redemption. d. debit of $5,000 to Premium on Bonds Payable. 58. Andrews Inc. issues a $497,000, 10% 3-year mortgage note on January 1. The note will be paid in three annual installments of $200,000, each payable at the end of the year. What is the amount of interest expense that should be recognized by Andrews Inc. in the second year? a. $16,567 b. $49,700 c. $34,670 d. $346,700. 59. Iqra is a business consultant. She provided the following information at the end of her first financial year on 30 April 2017. $ fees earned during the year 244 000 fees owed by clients at 30 April 2017 22000 cost of computer equipment purchased 26 000 loan interest paid 4000 other business expenses 142000 What was Iqra's profit for the year? a. $72 000 b. $94 000 c. $98 000 d. $120 000 14
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