Question :
141. On January 1, 2014, Gemstone Company obtained a $165,000, 10-year, : 1239305
141. On January 1, 2014, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the payment of the first annual amount due on the note would include:
A. a debit to cash of $11,942
B. a credit to Interest Payable of $11,550
C. a debit to Notes Payable of $11,942
D. a debit to Interest Expense of $23,492
142. On January 1, 2014, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1, 2014 would include:
A. a debit to Interest Expense of $11,550
B. a credit to Interest Payable of $11,550
C. a credit to Notes Payable of $165,000
D. a debit to Notes Payable of $165,000
143. On January 1, 2011, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31, 2011. The December 31, 2011 carrying amount in the amortization table for this installment note will be equal to:
A. $27,635
B. $40,201
C. $36,821
D. $48,620
144. On January 1, 2011, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, 2011. The December 31, 2012 carrying amount in the amortization table for this installment note will be equal to:
A. $26,000
B. $27,635
C. $21,642
D. $28,402
145. On January 1, 2011, Zero Company obtained a $52,000, four-year, 6.5% installment note from Regional Bank. The note requires annual payments of $15,179, beginning on December 31, 2011. The December 31, 2013 carrying amount in the amortization table for this installment note will be equal to:
A. $0
B. $13,000
C. $14,252
D. $16,603
146. An installment note payable for a principal amount of $94,000 at 6% interest requires Lawson Company to repay the principal and interest in equal annual payments of $22,315 beginning December 31, 2014, for each of the next five years. After the final payment, the carrying amount on the note will be
A. $ 1,263
B. $21,053
C. $22,315
D. $ 0
147. On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. If the company uses the straight-line method for amortizing the premium, the journal entry to record the first semiannual interest payment by Lisbon Co. would include a debit to:
A. Interest Payable for $30,000
B. Interest Expense for $32,500
C. Cash for $70,000
D. Premium on Bonds Payable for $5,500
148. On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. The journal entry to record the amortization of the premium (by the straight line method) for the year by Lisbon Co. includes a debit to:
A. Interest Expense for $2,500
B. Premium on Bonds Payable for $2,500
C. Interest Expense for $5,000
D. Premium on Bonds Payable for $5,000
149. On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for $1,050,000, with interest payable semiannually. Orange Inc. purchased the bonds on the issue date for the issue price. The journal entry to record the amoritization of the bond premium (by straight-line method) for the year by Orange Inc. includes a credit to:
A. Interest Revenue for $5,000
B. Interest Revenue for $2,500
C. Investment in Lisbon Co. Bonds $5,000
D. Investment in Lisbon Co. Bonds $2,500
