Answer:
Interest Expense $39,600
Cash Flow from Operating Activities $39,600
Explanation:
Payment of Interest Expense is the cash expense paid during the year which is deducted from the operating profit in the calculation of net income which is used to determine the cash flow from operating activities.
Interest on the Bond = $660,000 x 6% = $39,600
At the time of payment Journal Entry will be as follow 
Dr. Interest Expense   $39,600
Cr. Cash                       $39,600
As the cash is paid against the operating activities.
 
        
             
        
        
        
Answer:
Note: The full question is attached as picture below
                                (a)                   (b)                   (c)  
                                 In                                      Larger  
                             Balance      Difference       column
1.                               No               $725             Debit  
2.                             Yes                 NA                NA  
3.                              Yes                 NA                NA  
4.                               No               $225            Credit  
5.                              Yes               $684               NA  
6.                               No                $45             Credit
 
        
             
        
        
        
Answer:
Dr Available for sale securities 11,500
     Cr Unrealized gains - AFS securities 11,500
Explanation:
The securities cost is $420,000 while the fair market value is $431,500, so the difference is an unrealized gain of = $431,500 - $420,000 = $11,500. 
Unrealized gains are included in Other comprehensive income account, which belongs under stockholder equity. When unrealized gains increase, then they should be credited. 
Since the securities are held as investment assets, they should also increase by debiting the account. 
 
        
             
        
        
        
Answer:
c.income from operations before service department charges was $1,650,000
Explanation:
We can see from the information in the question, that income from operations and service department charges sum a total of $1,650,000
Gross income before service department charges = $975,000 + $675,000
                                                                                     = $1,650,000
 
        
             
        
        
        
Answer:
depreciation for 2021 is $ 18,000
book value at December 31, 2021 is $ 27,000
Explanation:
Sum of Digits Method is a depreciation method that provides for higher depreciation to be charged early in the life of an asset with a lower depreciation in later years.
Sum of digits for the  framing machine is calculated as follows :
Year                                           Sum of Digits 
1                                                          4
2                                                         3
3                                                         2
4                                                          1
Total                                                   10
<u>Depreciation for 2021 is calculated as :</u>
= 4/10× $ 45,000
= 18,000
<u>Book value at December 31, 2021 is calculated as :</u>
=Cost - Accumulated Depreciation
=$45,000 - $ 18,000
=$ 27,000