6 On June 1, 2015, Smith & Beecham Services issued $30,000 of 7.50% bonds that mature in five years. They were sold at a premium, for a total of $31,250. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2015, what is the total amount paid to bondholders? A) $1,125.00 B) $2,250.00 C) $1,171.88 D) $2,343.75 11. On November 1, 2014, Archangel Services issued $300,000 of 8-year bonds with a stated rate of 9% at par. The bonds make semiannual payments on April 30 and October 31. On December 31, 2014, Archangel made an adjusting entry to accrue interest at year-end. How much Interest Expense will be recorded at December 31, 2014? A) $27,000 B) $4,500 C) $13,500 D) $14,200 12. On November 1, 2014, Archangel Services issued $300,000 of 5-year bonds with a stated rate of 10%. The bonds were sold at par, and Archangel makes semiannual payments on April 30 and October 31. On December 31, 2014, Archangel made an adjusting entry to accrue interest at year-end. No further entries were made until April 30, 2015, when the first payment was sent out. How much interest expense was recorded for the period of January 1 to April 30, 2015? A) $10,000 B) $30,000 C) $15,000 D) $24,000 Comparative Balance Sheet December 31, 2014 and 2013 2014 2013 Increase/decrease Cash $45,000 $27,000 $18,000 Accounts Receivable 48,000 45,000 3,000 Inventory 180,000 132,000 48,000 Total assets $273,000 $204,000 $69,000 13. How will the change in Accounts Receivable be shown on the statement of cash flows? A) positive cash flow under the operating activities section B) negative cash flow under the operating activities section C) positive cash flow under the financing activities section D) negative cash flow under the investing activities section 15. Christopher Corp. is preparing its statement of cash flows using the indirect method. It provides the following information about transactions for the year: Plant assets, netbeginning balance: $108,000 Plant assets, netending balance: $144,000 Equipment costing $62,400 was purchased for cash Equipment with a net asset value of $12,000 was sold for $16,800 Depreciation Expense of $14,400 was recorded during the year What was the amount of net cash provided by (used for) investing activities? A) $(45,600) B) $45,600 C) $(60,000) D) $(45,000) 17. The following is summary of information presented on the financial statements of a company on December 31, 2015. Account Current Assets Accounts Receivable Merchandise Inventory Current Liabilities Long-term Liabilities Common Stock Retained Earnings 2015 $82,000 60,000 62,000 52,000 39,000 70,000 65,000 2014 $70,000 68,000 53,000 46,000 45,000 50,000 40,000 What would a horizontal analysis report show with respect to long-term liabilities? A) long-term liabilities decreased by $30,000 B) long-term liabilities decreased by 40% C) long-term liabilities decreased by 13.33% D) long-term liabilities decreased by $10,000 22. Putnam Manufacturers Inc. has estimated total factory overhead costs of $84,000 and 12,000 direct labor hours for the current fiscal year. If job number 117 incurred 1,500 direct labor hours, the work in process account will be debited and factory overhead will be credited for: a. $10,500 b. $0; WIP is credited c. $84,000 d. $1,500 24 Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. Estimated manufacturing overhead cost Actual manufacturing overhead cost Estimated machine hours Actual machine hours $235,000 $244,000 20,000 22,500 The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to A) $10.44. B) $11.75. C) $10.84