On August 1, a $34,800, 7%, 3-year installment note payable is issued by a company. The note requires equal payments of principal plus accrued interest of $13,260.60. The entry to record the first payment on July 31 would include:

A corporation borrowed $125,000 cash by signing a 5-year, 9% installment note requiring annual payments each December 31 of $32,136. What journal entry would the issuer record for the first payment?

Keith Riggins expects an investment of $128,392 to return $15,000 annually for several years. If Riggins earns a return of 8%, how many annual payments will he receive?

Morgan Company issues 9%, 20-year bonds with a par value of $840,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is

A company had a beginning balance in retained earnings of $44,500. It had net income of $7,500 and declared and paid cash dividends of $6,000 in the current period. The ending balance in retained earnings equals:

A corporation issued 6,000 shares of its $2 par value common stock in exchange for land that has a market value of $84,000. The entry to record this transaction would include:

During August, Boxer Company sells $361,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit of $12,300 before adjustment. Customers returned merchandise for warranty repairs during the month that used $8,900 in parts for repairs. The entry to record the estimated warranty expense for the month is:

On November 1, Alan Company signed a 120-day, 8% note payable, with a face amount of $9,000. What is the maturity value (principle plus interest) of the note on March 1? (Use 360 days a year)

A corporation sold 12,500 shares of its $10 par value common stock at a cash price of $12 per share. The entry to record this transaction would include:

The stockholders’ equity of TVX Company at the beginning of the day on February 5 follows: Common stock — $10 par value, 150,000 shares authorized, 60,000 shares issued and outstanding                         $600,000 Paid-in capital in excess of par value, common stock                                                                                                           425,000 Retained earnings                                                                                                                                                                     550,000     Total stockholders’ equity                                                                                                                                                $1,575,000 On February 5, the directors declare a 20% stock dividend distributable on February 28 to the February 15 stockholders of record. The stock’s market value is $40 per share on February 5 before the stock dividend. The entries to record both the dividend declaration and its distribution are: