1. Smithson Co. signed a $30,000, 5% four-month note payable on September 1, 2018. What is the amount of interest expense that must be recognized on December 31, 2018 when Smithson prepares financial statements?

2. Answer the following related to bond prices:
   1. If the market rate = contract rate, the bond is sold at ______________

2. If the market rate > contract rate, the bond is sold at _______________

3. If the market rate < contract rate, the bond is sold at _______________

3. What is the transaction to record the sale of $300,000 ten-year, 6% bonds issued at face value?

Assets	Liabilities	Stockholders Equity

4. Johnson & Johnson issues 2,000 shares of $1 par value common stock for cash at $9 per share. What is the transaction to record the issuance of stock?

Assets	Liabilities	Stockholders Equity

5. Identify and define the three dates that are important when recording cash dividends: