25. The Jazz Studio issues a contract to a new recording artist to produce a r of albums over the next five years at $1 miion per abun. This situation to a is an example of A) A contingent Sabity which should be recorded in the accounting records. B) A contingent lablity requiking fcotnote disclosure C) An estimated liabifity, since the nmber of albuns to be produced is not yet determined D) A commitnent which, if material, may be disclosed in a footnote. Use the following to answer questions 26 or 1, Year 1, Cody Ca. torrowed $80,000 from Town Bank and signed a 12%, six month note payable, al due at maturity. toan is stated separately The interest on this 26. Refer to the above data. How much must Cody pay Town Bank on May 1. Year 2, when the note matures? A) $60,000, B) $67,200 C) $83,600 D) $82,400. 27. Refer to the above dsta. How much interest expense will Cody recognize on this note in Year 27 A) $7,200. B) $3,600. C) $1,800 D) $2,400. 28. Refer to the above data. At December 31, Year 1, the adjusting entry with respect to this note includes a: A) Credit to Interest Payable for $1,200 B) Credit to Notes Payable for $1,200. C) Debit to Interest Expense for $2,400 D) Credit to Cash for $2,400. Panda Co. has outstanding $100 million of 5% bonds, due in 7 years, and callable at 104. The bonds were issued at par and are selling today at a market price of 92 29. Refer to the above data. If Panda Co. retires $10 million of these bonds by purchasing them from bondholders at a current market price, the company will report