A company estimates that warranty expense will be exp of sales. A company estimates that warranty expense will be 1% of sales. The company's sales for the current period is $183,000. The current period's entry to record the warranty expense is: Warranty Expense 1830 Sales 1830 Warranty Expense 1830 Estimated Warranty Liability 1830 Warranty Liability 1830 Cash 1830 Estimated Warranty Liability 1830 Estimated Warranty Expense 1830 No entry is recorded until the items are returned for warranty repairs. 2.bondholder that owns a $3,500, 17%, 17-year bond has: Ownership rights. The right to receive $59,500 at maturity. The right to receive $3,500 at maturity. The right to receive $17 per year until maturity.
The right to receive dividends of $3,500 per ye A company issued F, Year-year bonds with a par value of .A company issued 3%, 5-year bonds with a par value of $640,000. The current market rate is 3%. The journal entry to record each semiannual interest payment is: Bond Interest Expense 320,000 Bond Payable 320,000 No entry is needed, since no interest is paid until the bond is due Bond Interest Expense 19,200 Cash 19,200 Bond Interest Expense 9,600 Cash 9,600 Bond Interest Expense 640,000 Cash 640,000 4. Nike issued 20-year, 5% bonds with a par value of $300,000. Interest is paid semiannually.
The market rate on the issue date was 4.5%. Nike received $321,048 in cash proceeds. Which of the following statements is true? Nike must pay $321,048 at maturity and no interest payments. Nike must pay $321,048 at maturity plus 40 interest payments of $7,500 each. Nike must pay $300,000 at maturity plus 40 interest payments of $6,500 each. Nike must pay $300,000 at maturity and no interest payments. Nike must pay $300,000 at maturity plus 40 interest payments of $7,500 each. 5. On January 1, 2010, Jacob issues $980,000 of 7%, 13-year bonds at a price of 94.5. All interest is accounted for and paid through December 31, 2015, the day before the purchase. The straight-line method is used to amortize any bond discount. What is the carrying value of the bond on January 1, 2016? $926,100 $1,028,624 $950,976 $955,124 $980,000.