Question :
91. On January 1, 2013, Jacob issues $800,000 of 9%, : 1256354
91. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the issuance of the bonds on January 1, 2013?
A.
Cash
800,000
Bonds Payable
800,000
B.
Bonds Payable
800,000
Cash
800,000
C.
Cash
800,000
Bonds Payable
772,000
Discount on Bonds Payable
28,000
D.
Cash
772,000
Premium on Bonds Payable
28,000
Bonds Payable
800,000
E.
Cash
772,000
Discount on Bonds Payable
28,000
Bonds Payable
800,000
92. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the first semiannual interest payment on June 30, 2013?
A.
Interest Expense
36,000
Cash
36,000
B.
Cash
36,000
Interest Expense
36,000
C.
Interest Expense
36,000
Discount on Bonds Payable
1,077
Cash
37,077
D.
Interest Expense
36,000
Premium on Bonds Payable
1,077
Cash
37,077
E.
Interest Expense
37,077
Discount on Bonds Payable
1,077
Cash
36,000
93. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the carrying value of the bond on January 1, 2019?
A. $772,000 B. $831,076C. $784,924
D. $277,000E. $800,000
94. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All semiannual interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the retirement of 20% of the bonds on January 1, 2019?
A.
Bonds Payable
160,000
Cash
156,985
Discount on Bonds Payable
3,015
B.
Bonds Payable
160,000
Loss on Retirement
11,815
Discount on Bonds Payable
3,015
Cash
168,800
C.
Bonds Payable
160,000
Discount on Bonds Payable
3,015
Cash
168,800
Gain on Retirement
5,785
D.
Bonds Payable
160,000
Premium on Bonds Payable
2,585
Discount on Bonds Payable
3,015
Cash
154,400
E.
Bonds Payable
168,800
Cash
168,800
95. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. What is the journal entry to record the issuance of these bonds?
A.
Cash
600,000
Bonds Payable
600,000
B.
Bonds Payable
600,000
Cash
600,000
C.
Cash
615,000
Bonds Payable
600,000
Premium on Bonds Payable
15,000
D.
Cash
600,000
Premium on Bonds Payable
15,000
Bonds Payable
615,000
E.
Cash
600,000
Discount on Bonds Payable
9,000
Bonds Payable
609,000
96. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the first interest semi-annual interest payment on June 30, 2013?A.
Interest Expense
33,000
Cash
33,000
B.
Cash
33,000
Interest Expense
33,000
C.
Interest Expense
32,500
Discount on Bonds Payable
500
Cash
33,000
D.
Interest Expense
32,500
Premium on Bonds Payable
500
Cash
33,000
E.
Interest Expense
33,000
Discount on Bonds Payable
500
Cash
32,500
97. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond premium or discount. What is the total interest expense for the life of these bonds?
A. $975,000 B. $964,000C. $936,000
D. $772,000E. $990,000
98. On January 1, 2013, Jacob issued $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium and interest is paid semiannually. If all interest has been accounted for properly, what is the carrying value of these bonds on January 1, 2019?
A. $472,000 B. $531,076C. $584,924
D. $609,000E. $600,000
99. On January 1, 2013, Jacob issued $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium and interest is paid semiannually. All interest has been accounted for (and paid) through December 31, 2018. The company retires 30% of these bonds by buying them on the open market at 98½.What is the journal entry to record the retirement of 30% of the bonds on January 1, 2019?
A.
Bonds Payable
180,000
Cash
177,300
Discount on Bonds Payable
2,700
B.
Bonds Payable
180,000
Loss on Retirement
11,815
Discount on Bonds Payable
2,700
Cash
177,300
C.
Bonds Payable
180,000
Discount on Bonds Payable
2,700
Gain on Retirement
177,300
Cash
5,400
D.
Bonds Payable
180,000
Premium on Bonds Payable
2,700
Gain on Retirement
5,400
Cash
177,300
E.
Bonds Payable
180,000
Cash
180,000
100. On April 1, 2013, Jared Enterprises issues bonds dated January 1, 2013, that have a $2,430,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par plus three months’ accrued interest. What is the total amount of cash Jared Enterprises will collect on April 1, 2013?
A. $2,600,100B. $2,430,000C. $2,472,525
D. $2,750,000E. $2,515,050
101. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106 3/4. The interest payments are made on June 30 and December 31. The straight-line method is used to amortize any bond discount or premium. Lane elects a fiscal year ending September 30. What is the appropriate adjusting journal entry required for September 30, 2013?
A.
Interest Expense
22,925
Cash
22,925
B.
Interest Expense
22,925
Premium on Bonds Payable
1,575
Cash
24,500
C.
Interest Expense
11,462.50
Premium on Bonds Payable
787.50
Interest Payable
12,250
D.
Interest Payable
11,462.50
Premium on Bonds Payable
787.50
Cash
12,250
E.
Interest Payable
11,462.50
Discount on Bond Payable
787.50
Interest Expense
12,250
102. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106¾. The interest payments are made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as interest expense in the December 31, 2013, journal entry?
A. $24,500.00
B. $22,925.00C. $12,250.50
D. $11,462.50E. $13,458.00
103. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106¾. The interest payments are made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as cash paid in the December 31, 2013, journal entry?
A. $24,500
B. $22,925C. $12,250
D. $11,462E. $13,458
0
combs
