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1. A car is sold for $36,000, zero down-payment, and 72 month equal payments at 0% interest. The market interest rate for a 6-year car loan is 3.5%. You bought the car for your company. What is the entry to record the asset and liability?
2. Big 4 Sporting Goods sold $1,000,000 of products in March 2019 to retail customers in San Diego. San Diego imposes an 8.0% sales tax. Customers returned $50,000 of items during March 2019. Big 4 paid the sales tax due for March on April 5. Show the entries in the T accounts below (ignore the allowance method of accounting for sales returns.)

Cash				Sales Revenue				Sales Tax Payable
Sales Tax Expense				Sales Returns				Accounts Receivable

3. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 4%, payable semiannually. Market interest rates on September 1, 2019 were 8%. Prepare the journal entry to record the transaction on September 1, 2019.

4.Prepare the journal entries to record interest expense and other accounts for XYZs bond for the first 2 interest payments (ignore year-end accruals)

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