Question : 91. When the market rate of interest was 12%, Halprin Corporation : 1251402

91. When the market rate of interest was 12%, Halprin Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually.  The selling price of this bond issue was  
A. $ 321,970
B. $1,000,000
C. $943,494
D. $621,524

92. When the market rate of interest was 11%, Munson Corporation issued $1,000,000, 12%, 8-year bonds that pay interest semiannually.  The selling price of this bond issue was  
A. $1,052,310
B. $1,154,387
C. $1,000,000
D. $720,495

93. The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is  
A. debit Bonds Payable, credit Cash
B. debit Cash and Discount on Bonds Payable, credit Bonds Payable
C. debit Cash, credit Premium on Bonds Payable and Bonds Payable
D. debit Cash, credit Bonds Payable

94. The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be  
A. debit Bonds Payable, credit Cash
B. debit Cash and Discount on Bonds Payable, credit Bonds Payable
C. debit Cash, credit Premium on Bonds Payable and Bonds Payable
D. debit Cash, credit Bonds Payable

95. The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be  
A. debit Bonds Payable, credit Cash
B. debit Cash and Discount on Bonds Payable, credit Bonds Payable
C. debit Cash, credit Premium on Bonds Payable and Bonds Payable
D. debit Cash, credit Bonds Payable

96. When the market rate of interest was 11%, Valley Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually.  Using the straight-line method, the amount of discount or premium to be amortized each interest period would be  
A. $4,000
B. $896
C. $17,926
D. $1,793

97. The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is  
A. debit Interest Expense, credit Cash and Discount on Bonds Payable
B. debit Interest Expense, credit Cash
C. debit Interest Expense and Discount on Bonds Payable, credit Cash
D. debit Interest Expense, credit Interest Payable and Discount on Bonds Payable

98. The journal entry a company records for the payment of interest, interest expense, and amortization of bond premium is  
A. debit Interest Expense, credit Cash and Premium on Bonds Payable
B. debit Interest Expense, credit Cash
C. debit Interest Expense and Premium on Bonds Payable, credit Cash
D. debit Interest Expense, credit Interest Payable and Premium on Bonds Payable

99. On January 1, 2010, the Baker Corporation issued 10% bonds with a face value of $50,000.  The bonds are sold for $46,000.  The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2014.  Baker records straight-line amortization of the bond discount.  The bond interest expense for the year ended December 31, 2010, is  
A. $4,000
B. $4,200
C. $5,400
D. $5,800

100. If $1,000,000 of 8% bonds are issued at 105, the amount of cash received from the sale is  
A. $1,080,000
B. $950,000
C. $1,000,000
D. $1,050,000