Exam 20: Corporations and Bonds Payable

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Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Deposited cash in a bond sinking fund. Debit & & Credit & &

(Short Answer)

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Question 41

A bond is issued for an amount equal to its face value. Which of the following statements most likely would explain why?

(Multiple Choice)

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Question 42

When the maturities of a bond issue are spread over a several dates, the bonds are called:

(Multiple Choice)

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Question 43

The interest paid to bondholders is determined by:

(Multiple Choice)

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Question 44

Using the straight-line method, the semiannual bond interest expense of a 12%, $300,000, 15-year bond issued at 95 is:

(Multiple Choice)

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Question 45

Moab Corporation sells $500,000 of 7%, 20-year bonds for 98 on January 1. Interest is paid on January 1 and July 1. Straight-line amortization is used. What is the amount of the discount at issuance?

(Multiple Choice)

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Question 46

Bonds that can be exchanged for stock in the corporation are called ________ bonds.

(Short Answer)

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Question 47

Bonds are long-term interest-bearing notes issued to multiple lenders, usually in increments of $1,000.

(True/False)

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Question 48

A bond that has a face value of $250,000 with an annual interest rate of 9% paid semiannually and sold at par would have an interest payment of ________ semiannually.

(Short Answer)

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Question 49

On January 1, 20XX, Edward Company issued $200,000, 10-year, 8% bonds with semiannual interest payments on June 30 and December 31. Record the 20XX journal entries.

(Essay)

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Question 50

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

(Multiple Choice)

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Question 51

Bonds are issued for $80,000 at 12% on November 1. What is the adjusting entry on December 31?

(Multiple Choice)

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Question 52

At maturity, the Premium on Bonds will have a balance equal to the original premium.

(True/False)

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Question 53

Greg Corporation issued on January 1, $650,000 of 11%, 5-year bonds at contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries: a. Issued the bonds. b. Paid the first semiannual interest payment. c. Retired the bonds at maturity.

(Essay)

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Question 54

The payment of quarterly interest on 12%, $60,000 bonds would be to:

(Multiple Choice)

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Question 55

Martin Corporation sells $200,000, 12%, 10-year bonds at face value on January 1. Interest is paid on January 1 and July 1. The entry to record the issuance of the bonds on January 1 is:

(Multiple Choice)

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Question 56

When interest payments are made on a bond issued at face value, the journal entry is:

(Multiple Choice)

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Question 57

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid the bond holders the amount due, face value plus accrued interest, using the sinking fund. Debit & & Credit & &

(Short Answer)

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Question 58

For a corporation, a premium on bonds results when:

(Multiple Choice)

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Question 59

Allan Corporation issued 300, 8%, 10-year, $1,000 bonds on July 1. The annual bond interest date is June 30, and the bonds were issued at face value. The amount of interest expense reported for the current year is:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 138

Exam 20: Corporations and Bonds Payable

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Deposited cash in a bond sinking fund. Debit ________ & ________ & ________ Credit ________ & ________ & ________

A bond is issued for an amount equal to its face value. Which of the following statements most likely would explain why?

When the maturities of a bond issue are spread over a several dates, the bonds are called:

The interest paid to bondholders is determined by:

Using the straight-line method, the semiannual bond interest expense of a 12%, $300,000, 15-year bond issued at 95 is:

Moab Corporation sells $500,000 of 7%, 20-year bonds for 98 on January 1. Interest is paid on January 1 and July 1. Straight-line amortization is used. What is the amount of the discount at issuance?

Bonds that can be exchanged for stock in the corporation are called ________ bonds.

Bonds are long-term interest-bearing notes issued to multiple lenders, usually in increments of $1,000.

A bond that has a face value of $250,000 with an annual interest rate of 9% paid semiannually and sold at par would have an interest payment of ________ semiannually.

On January 1, 20XX, Edward Company issued $200,000, 10-year, 8% bonds with semiannual interest payments on June 30 and December 31. Record the 20XX journal entries.

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

Bonds are issued for $80,000 at 12% on November 1. What is the adjusting entry on December 31?

At maturity, the Premium on Bonds will have a balance equal to the original premium.

Greg Corporation issued on January 1, $650,000 of 11%, 5-year bonds at contract rate. Interest is to be paid semiannually on July 1 and January 1. Journalize the following entries: a. Issued the bonds. b. Paid the first semiannual interest payment. c. Retired the bonds at maturity.

The payment of quarterly interest on 12%, $60,000 bonds would be to:

Martin Corporation sells $200,000, 12%, 10-year bonds at face value on January 1. Interest is paid on January 1 and July 1. The entry to record the issuance of the bonds on January 1 is:

When interest payments are made on a bond issued at face value, the journal entry is:

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid the bond holders the amount due, face value plus accrued interest, using the sinking fund. Debit ________ & ________ & ________ Credit ________ & ________ & ________

For a corporation, a premium on bonds results when:

Allan Corporation issued 300, 8%, 10-year, $1,000 bonds on July 1. The annual bond interest date is June 30, and the bonds were issued at face value. The amount of interest expense reported for the current year is:

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: the Conclusion of the Payroll Process

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, and Retained Earnings

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Deposited cash in a bond sinking fund. Debit & & Credit & &

Using the following accounts: Indicate the account(s)to be debited and credited to record the following transactions. -Paid the bond holders the amount due, face value plus accrued interest, using the sinking fund. Debit & & Credit & &