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B ). creation of a liability only . C ). disclosure in note form only . D ). recognition of a loss and creation of a liability for the value of the land . Question 26 Roley Corporation uses a periodic inventory system and the gross met hod of accounting for purchase discounts . On July 1 , Roley purchased $ 66,000 of inventory , terms 2 / 10 , n / 30 , FOB shipping point . Roley p aid freight costs of $ 1,210 . On July 3 , Roley returned damaged goods and received credit of $ 6,600 . On July 10 , Roley paid for the goods . P repare all necessary journal entries for Roley . Question 27 Takemoto Corporation borrowed $ 93,000 on November 1 , 2012 , by si gning a $ 95,093 , 3-month , zero-interestbearing note . Prepare Takemoto ’ s November 1 , 2012 , entry ; the Dece mber 31 , 2012 , annual adjusting entry ; and the February 1 , 2013 , entr y . ( For multiple debit / credit en tries , list amounts from largest to small est , e . g . 10 , 8 , 6 . Round all answers to 0 decimal places , e . g . 11,150 .) Question 28 Whiteside Corporation issues $ 629,000 of 9 % bonds , due in 14 years , with interest payable semiannually . At the time of issue , the annual m arket rate for such bonds is 10 %. Compute the issue price of the bond s .( Use the present value tables in the text . Question 29 Indiana Jones Company enters into a 6- year lease of equipment on January 1 , 2012 , which requires 6 annual payments of $ 37,560 each , beginning January 1 , 2012 . In addition , the lessee guarantees a residual value of $ 20,870 at leaseend . The equipment has a useful life of 6 years . Assume that for Lost Ark Company , the lessor , collectibility is reasonably predictable , ther e are no important uncertainties concerning costs , and the carrying am ount of the machinery is $ 191,722 . Prepare Lost Ark ’ s January 1 , 201 2 , journal entries . Question 30 On January 1 , 2012 , Irwin Animation sold a truck to Peete Finance fo r $ 26,050 and immediately leased it back . The truck was carried on Ir win ’ s books at $ 20,800 . The term of the lease is 5 years , and title tran