(3) Assume that Walker uses the effective interest method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30，2009.

(15%) 二、 A company’s income statement showed the following: net income, $124,000; depreciation expense, $30,000; and gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased $18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by operating activities.

(10%)三、 Shelby and Mortonson formed a partnership with capital contributions of $300,000 and $400,000, respectively. Their partnership agreement calls for Shelby to receive a $60,000 per year salary. Also, each partner is to receive an interest allowance equal to 10% of a partner’s beginning capital investments. The remaining income or loss is to be divided equally. If the netincome for the current year is $135,000, then what do Shelby and Mortonson，s respective share?

(1) Prepare the general journal entry to record the issuance of the bonds on January 1，2009.

(2) Show how the bonds would be reported on Walker’s balance sheet at January 1，2009.

(4) Assume instead that Walker uses the straight-line method of amortization of any discount or premium on bonds. Prepare the general journal entry to record the first semiannual interest payment on June 30，2009.

(1) Compute the revised annual depreciation on each asset in 2010. (Show computations.) (8%)

(2) Prepare the entry (or entries) to record depreciation on the building in 2010. ( 5% )

(1) A corporation had current year net income of $2,375,000, It paid preferred dividends of $80,000 cash and had 500,000 weighted-average shares of common stock outstanding. Calculate the corporation’s earnings per share. ( 4% )

(2) A company reported net income of $478,000 and paid $5,500 in preferred cash dividends during the current year. The company had 100,000 common shares issued，and 10,000 common shares in treasury. The year-end market price per common share was $43.05. Calculate the company’s price-earnings ratio. ( 4% )

(3) A company’s stock is selling for $35 per share at year-end. This current year it paid shareholders a $2.45 per share cash dividend, reported earnings per share of $12.00，and had 750,000 common shares outstanding at year-end. Calculate the company’s dividend yield. ( 4% )