ABC Corporation is authorized to issue $500,000 of 6 percent, 10-year bonds dated July 1, 2003, with interest payments on December 31 and June 30. When the bonds are issued on November 1, 2003, ABC Corporation receives cash of $515,000, including accrued interest. The journal entry to record the issuance of the bonds would include a. $15,000 bond premium. b. $5,000 bond premium. c. $15,000 bond discount. d. no bond premium or discount.      17.  The sum-of-the-years'-digits method of depreciation is being used for a machine with a five-year estimated useful life. What would be the fraction applied to the cost to be depreciated in the fourth year? a. 4/5 b. 2/5 c. 4/15 d. 2/15

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Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.