Exam 20: Corporations and Bonds Payable

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Evans Corporation sells $100,000,10%,10-year bonds for 97 on January 1.Compute the semiannual interest expense recorded on July 1 using the interest method.The market rate is 12%.

(Multiple Choice)

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Question 121

For a corporation,a premium on bonds results when:

(Multiple Choice)

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Question 122

On January 1,Auctions Online issued $400,000,9%,10-year bonds to lenders at the contract rate.Interest is to be paid semiannually on July 1 and January 1.Journalize the following entries: a.Issued the bonds. b.Paid first semiannual interest payment. c.Retired the bonds at maturity.

(Essay)

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Question 123

When a bond issued at face value is retired,the journal entry would include:

(Multiple Choice)

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Question 124

Using the straight-line method,the semiannual bond interest expense of a 10%,$200,000,10-year bond issued at 95 is:

(Multiple Choice)

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Question 125

The entry to record the semiannual payment and amortization of the discount using the straight-line method on a 10%,$200,000,5-year bond issued at 97 would be to:

(Multiple Choice)

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Question 126

Davis Corporation sells $200,000,12%,10-year bonds for 103 on January 1.Compute the semiannual interest expense recorded on July 1 using the interest method.The market rate is 8%.

(Multiple Choice)

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Question 127

The interest rate on which interest payments to bondholders are based is the:

(Multiple Choice)

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Question 128

Manning Corporation sells $100,000,12%,10-year bonds for 98 on January 1.Interest is paid on January 1 and July 1.Straight-line amortization is used.The entry to record the issuance of the bonds on January 1 is:

(Multiple Choice)

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Question 129

What is the purpose of a bond sinking fund?

(Essay)

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Question 130

A discount amortization does not affect the amount of cash paid for bond interest.

(True/False)

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Question 131

Issued bonds at face value in exchange for buildings and land. Debit & Credit

(Short Answer)

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Question 132

Bond interest expense is tax deductible.

(True/False)

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Question 133

Accrued interest on bonds which sold above face value. Debit & Credit

(Short Answer)

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Question 134

A discount bond's ________ increases over time until it reaches face value.

(Short Answer)

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Question 135

On July 1,Carly Corporation issued 10-year 9%,$600,000 bonds for $640,771,a price to yield 8% market rate.Interest dates are June 30 and December 31.Record the following journal entries: a.Issuance of the bonds. b.The semiannual interest payment and amortization of the premium on December 31 using the interest method.

(Essay)

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Question 136

Hefley Corporation issued a 10%,$400,000,8-year bond at 104.The entry to record the issuance transaction is to:

(Multiple Choice)

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Question 137

Bonds payable issued with collateral are called:

(Multiple Choice)

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Question 138

Showing 121 - 138 of 138

Exam 20: Corporations and Bonds Payable

Evans Corporation sells $100,000,10%,10-year bonds for 97 on January 1.Compute the semiannual interest expense recorded on July 1 using the interest method.The market rate is 12%.

For a corporation,a premium on bonds results when:

On January 1,Auctions Online issued $400,000,9%,10-year bonds to lenders at the contract rate.Interest is to be paid semiannually on July 1 and January 1.Journalize the following entries: a.Issued the bonds. b.Paid first semiannual interest payment. c.Retired the bonds at maturity.

When a bond issued at face value is retired,the journal entry would include:

Using the straight-line method,the semiannual bond interest expense of a 10%,$200,000,10-year bond issued at 95 is:

The entry to record the semiannual payment and amortization of the discount using the straight-line method on a 10%,$200,000,5-year bond issued at 97 would be to:

Davis Corporation sells $200,000,12%,10-year bonds for 103 on January 1.Compute the semiannual interest expense recorded on July 1 using the interest method.The market rate is 8%.

The interest rate on which interest payments to bondholders are based is the:

Manning Corporation sells $100,000,12%,10-year bonds for 98 on January 1.Interest is paid on January 1 and July 1.Straight-line amortization is used.The entry to record the issuance of the bonds on January 1 is:

What is the purpose of a bond sinking fund?

A discount amortization does not affect the amount of cash paid for bond interest.

Issued bonds at face value in exchange for buildings and land. Debit ________ & ________ Credit ________

Bond interest expense is tax deductible.

Accrued interest on bonds which sold above face value. Debit ________ & ________ Credit ________

A discount bond's ________ increases over time until it reaches face value.

Hefley Corporation issued a 10%,$400,000,8-year bond at 104.The entry to record the issuance transaction is to:

Bonds payable issued with collateral are called:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Accounting for Property,plant,equipment,and Intangible Assets

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Issued bonds at face value in exchange for buildings and land. Debit & Credit

Accrued interest on bonds which sold above face value. Debit & Credit