25. The Jazz Studio issues a contract to a new number of albuns over is an example of recording artist to produce a next five years at 31 million per alburn. This situntion A) A contingent liability which should be recorded in the records B) A contingent liability r C) An estimated liability yet determined. requiring footnote , since the number of albums to be produced is not D) A commitment which, if material, may be disclosed in a footnote. Use the following to answer questions 26-28 On November 1, Year 1, Cody Co. borrowed $80,000 from Town Bank and signed a 12%, six month note payable, all due at maturity. The interest on this loan is stated separately 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) $63,600. D) $62,400. 27. Refer to the above data. 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 purchasing them from bondholders at a current market price, the company wil report 29. Refer to the above data. If Panda Co. retires $10 milion of these bonds by