Reference no: EM131702187

Q1. McAuliffe Corporation issued $200,000 of 7.5% 10-year bonds. The bonds are dated and sold on January 1 2015. Interest payments dates are January 1 and July 1. The bonds are issued for $193,205 to yield the market interest rate of 8%. McAuliffe corporation uses the effective-interest method.

What is the amount of interest the McAuliffe corp will record on July 2 2015, the first semiannual interest payment date? (rounded to the nearest dollar amount)

a. $7728

b. $7620

c. $228

Q2. In 2014 ACS corp borrowed $110,000, paid dividends of $26000, issued 14000 shares of stock, purchased land for $25000 and received dividends of $4000. Net income was $80000 and decepreciation for the year totaled $14000. Accounts receivable increased by $10000. How much should be reported as net cash provided by operating activities by the indirect method?

a. $857000

b. $84000

c. $72000

Q3. Sweet treat inc began the year with $25000 in accounts receivable and ended the year with $13000 in accounts receivable. If credit sales for the year were $575000 the cash collected from the customers during the year amounted to

a. $587000

b. $588000

c. $563000