Multiple choice

Please use the following cash-flow diagram for questions 1-4
1/1/11 12/31/11 12/31/12 12/31/13 12/31/14
I-----------------I-----------------I-----------------I-----------------I
98,000 (5,000) (5,000) (5,000) (5,000)
(100,000)

1) What is the necessary journal entry on January 1, 2011?
A. Cash 98,000
Bonds Payable 98,000
B. Cash 100,000
Bonds Payable 100,000
C. Cash 98,000
Discount on BP 2,000
Bonds Payable 100,000

2) What is the necessary entry for each interest payment?
A. Interest Expense 5000
Cash 5000
B. Interest Expense 5500
Discount on Bonds Payable 500
Cash 5000
C. Interest Expense 6000
Cash 6000
D. Interest Expense 6500
Discount on Bonds Payable 500
Cash 6000

3) What entry is required on December 31, 2014 to retire the bonds?
A. Cash100,000
Bonds Payable 100,000
B. Bonds Payable 100,000
Cash100,000
C. Cash98,000
Bonds Payable 98,000
D. Bonds Payable 98,000
Cash 98,000

4) If Ziegler Corporation uses double-declining balance, what is the depreciation expense for Year 1?
A. $120,000
B. $60,000
C. $80,000
D. $133,333