Use the Following Information for Questions

question 8

Multiple Choice

Use the following information for questions.issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31.The bonds were sold to yield 8%.Table values are:
-Everhart Company issues $10,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010.The bonds pays interest semiannually on June 30 and December 31.The bonds are issued to yield 5%.What are the proceeds from the bond issue?

• A)$10,000,000
• B)$10,432,988
• C)$10,437,618
• D)$10,434,616

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Definitions:

Materials

Substances or components used in the manufacturing or production of goods.

Equivalent Unit

A measure used in process costing that converts partially completed units into a number of fully completed units for accounting purposes.

First-in

A term often used to describe inventory valuation methods, implying the first items produced or purchased are the first sold.

Materials

Raw substances or components that are used in the manufacturing process to produce goods.