Question : 111. Selling the bonds at a premium has the effect of A. raising : 1239302

 

 

111. Selling the bonds at a premium has the effect of 
A. raising the effective interest rate above the stated interest rate.
B. attracting investors that are willing to pay a lower rate of interest than on similar bonds.
C. causing the interest expense to be higher than the bond interest paid.
D. causing the interest expense to be lower than the bond interest paid.

 

112. Bonds with a face amount $1,000,000, are sold at 108. The entry to record the issuance is 
A. Cash                                                      1,000,000
Premium on Bonds Payable                       80,000
           Bonds Payable                                              1,080,000
B. Cash                                                    1,080,000
            Premium on Bonds Payable                               80,000
            Bonds Payable                                               1,000,000
C. Cash                                                    1,080,000
            Discount on Bonds Payable                                80,000
            Bonds Payable                                                1,000,000
D. Cash                                                    1,080,000
            Bonds Payable                                              1,080,000

 

113. Bonds with a face amount $1,000,000, are sold at 96. The entry to record the issuance is 
A. Cash                                                  1,000,000
            Premium on Bonds Payable                             40,000
            Bonds Payable                                                960,000
B. Cash                                                     960,000
Premium on Bonds Payable                   40,000
           Bonds Payable                                              1,000,000
C. Cash                                                    960,000
Discount on Bonds Payable                  40,000
           Bonds Payable                                              1,000,000
D. Cash                                                    960,000
          Bonds Payable                                                  960,000

 

114. Sinking Fund Cash would be classified on the balance sheet as 
A. a current asset
B. a fixed asset
C. an intangible asset
D. an investment

 

115. Sinking Fund Investments would be classified on the balance sheet as 
A. a current asset
B. a fixed asset
C. an investment
D. a deferred debit

 

116. The cash and securities comprising a sinking fund established to redeem bonds at maturity in 2015 should be classified on the balance sheet as 
A. fixed assets
B. current assets
C. intangible assets
D. investments

 

117. The bond indenture may provide that funds for the payment of bonds at maturity be accumulated over the life of the issue.  The amounts set aside are kept separate from other assets in a special fund called a(n) 
A. enterprise fund
B. sinking fund
C. special assessments fund
D. general fund

 

118. Sinking Fund Income is reported in the income statement as 
A. income from operations
B. extraordinary
C. gain on sinking fund transactions
D. other income

 

119. If bonds payable are not callable, the issuing corporation 
A. can exchange it for common stock
B. can repurchase them in the open market
C. must get special permission from the SEC to repurchase them
D. is more likely to repurchase them if the interest rates increase

 

120. When callable bonds are redeemed below carrying value 
A. Gain on Redemption of Bonds is credited
B. Loss on Redemption of Bonds is debited
C. Retained Earnings is credited
D. Retained Earnings is debited

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more