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23) Zorn Inc. makes a sale for $450. The company is required to collect sales taxes amounting to 10%. When recording this sale, Zorn will A) debit Cash for $450. B) debit Sales Tax Payable for $45. C) debit Sales Tax Expense for $45. D) credit Sales Revenue for $495 E) credit Sales Revenue for $450. 24) On August 1, 2019, Paige's Dance Company borrows $45,000 from Adirondack Bank on a 9-month, 6% note. The adjusting journal entry to accrue interest expense on December 31, 2019 will include a: A) debit to Interest Expense for $1,500. B) credit to Interest Payable for $1,125. C) credit to Interest Expense for $1,125. D) credit to Cash for $1,125. E) credit to Interest Payable for $1,500. 25) Carlson Inc. issues 20-year, 6% bonds with a face value of $200,000. If the bonds are issued at a premium, A) The market interest rate is less than 6%. B) The market interest rate is greater than 6%. C) The market interest rate is 6%. D) No relationship exists between the market interest rate and the bond's 6% interest rate. 26) On the balance sheet, the account Premium on Bonds Payable is: A) classified as a contra-equity account. B) classified as an expense account. C) added to Bonds Payable. D) a contra-liability account. E) classified as a contra-asset account. 27) Maxwell Manufacturing issued $460,000, 9-year, 11% bonds at 106.5. What is the issue price of these bonds? A) $510,600 B) $430,100 C) $489,900 D) $460,000 28) A company issues $500,000 in bonds at an issue price of 98. When recording this transaction, the ce will include a: A) debit to Cash of $490,000. B) credit to Premium on Bonds Payable of $10,000. C) credit to Bonds Payable of $490,000. D) debit to Bonds Payable of $500,000. E) credit to Discount on Bonds Payable of $10,000. WOUDO O 3 106 CDE 106 OOO UUOOO - A

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