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On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the isssuance of the bond is: Multiple Choice Debit Cash $228,930; credit Bonds Payable $228,930. Debit Cash $228,930; credit Discount on Bonds Payable $8,930; credit Bonds Payable $220,000. Debit Bonds Payable $220,000; debit Bond Interest Expense $8,930; credit Cash $228,930. Debit Cash $228,930; credit Premium on Bonds Payable $8,930; credit Bonds Payable $220,000. Debit Cash $220,000; debit Premium on Bonds Payable $8,930; credit Bonds Payable $228,930. Torino Company has 1,200 shares of $10 par value, 5.5% cumulative and nonparticipating preferred stock and 12,000 shares of $10 par value common stock outstanding. The company paid total cash dividends of $500 in its first year of operation. The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is: Multiple Choice $1,320 $500 $820 $160 $660 Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,638. The FICA tax for social security is 6.2% of the first $118,500 of employee earnings each calendar year and the FICA tax rate for Medicare is 1.45% of all earnings. The FUTA tax rate of 0.6% and the SUTA tax rate of 5.4% are applied to the first $7,000 of an employee's pay. The amount of federal income tax withheld from her earnings was $1,433.27. Her net pay for the month is: (Round your intermediate calculations to two decimal places.) Multiple Choice $6,566.00 $6,543.92 $7,079.48 $5,132.73 $6,109.92 In preparing a company's statement of cash flows for the most recent year, the following information is available: $ 14,800 153,000 134,000 91,000 66,000 100,000 123,000 Loss on the sale of equipment Purchase of equipment Proceeds from the sale of equipment Repayment of outstanding bonds Purchase of treasury stock Issuance of common stock Purchase of land Increase in accounts receivable during the 47,000 year Decrease in accounts payable during the year 79,000 39,000 Payment of cash dividends Net cash flows from investing activities for the year were: Multiple Choice $127,200 of net cash used $142,000 of net cash provided. $142,000 of net cash used. $233,000 of net cash provided. $268,000 of net cash used. Peavey Enterprises purchased a depreciable asset for $23,500 on April 1, Year 1. The asset will be depreciated using the straight-line method over its four-year useful life. Assuming the asset's salvage value is $2,300, Peavey Enterprises should recognize depreciation expense in Year 2 in the amount of: Multiple Choice $4,416.67 $20,316.67 $21,200.00 $5,300.00 $5,875.00

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