On January 1, 2020, Hollis Inc. issues $1,000,000 of 4.5% bonds, due in ten years, with interest payable annually on January 1. The bonds issue at $961,391, which resulted in an effective interest rate on the bonds of 5%. Required:
Record the bond issue on January 1, 2020, the payment of interest on December 31, 2020, the payment of interest on December 31, 2021.

The following are budgeted data: january february march sales in units 16,200 22,400 19,200 production in units 19,200 20,200 18,700 one pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be: