Question :
68.Which of the following answers shows the effect of the : 1254235
68.Which of the following answers shows the effect of the bond issuance on the financial statements?
A. Option A
B. Option B
C. Option C
D. Option D
69.Which of the following answers shows the effect of the first interest payment and amortization of premium or discount?
A. Option A
B. Option B
C. Option C
D. Option D
70.On 12/31/18, Wise Corporation makes the final entry to record interest and amortization. Immediately after that, Wise pays off the bonds as scheduled. Which of the following answers shows the effect of the bond pay-off on the financial statements?
A. Option A
B. Option B
C. Option C
D. Option D
71.Charleston Corporation made the following entry it its general journal on 12/31/13: Which of the following answers describes the above transaction?
A. Charleston issues bonds with a face value of $5,400 for $5,000 cash.
B. Charleston records interest expense and amortization of discount on bonds payable.
C. Charleston records annual interest and amortization of premium on bonds.
D. Charleston redeems callable bonds when the carrying value is $5,400.
72.The reason bonds are sometimes issued at a discount is:
A. the stated rate of interest is higher than the rate being paid on investments in the securities market with comparable risk.
B. the stated rate of interest is the same as the rate being paid on investments in the securities market with comparable risk.
C. the bonds are being issued between interest payment dates.
D. the stated rate of interest is lower than the rate being paid on investments in the securities market with comparable risk.
73.El Dorado Co. issued bonds with a face value of $50,000 and a stated interest rate of 8%. The bonds have a life of five years and were sold at 102 ½. If El Dorado amortizes discounts and premiums using the straight-line method, the amount of interest expense each full year would be:
A. $4,000.
B. $3,750.
C. $4,250.
D. $4,100.
74.If a bond is sold at 101, its stated rate of interest would be:
A. equal to the market rate.
B. unrelated to the market rate.
C. higher than the market rate.
D. lower than the market rate.
75.A five-year, $500,000 bond was issued on 1/1/13. The stated rate of interest was 8%, and the effective rate of interest was 10%. The interest is paid semiannually. Which of the following statements is correct?
A. This bond was issued at a premium, and the semiannual cash payment is $25,000 per period.
B. This bond was issued at a discount, and the annual interest expense is $40,000.
C. This bond was issued at a discount, and the semiannual cash payment is $20,000 per period.
D. This bond was issued at a premium, and the annual interest expense is $40,000.
76.Brennan’s Company experienced an accounting event that was recorded in the company’s general journal as indicated below: Which of the following choices accurately reflects how this event would affect Brennan’s financial statements.
A. Option A
B. Option B
C. Option C
D. Option D
77.Knight Company experienced an accounting event that affected its financial statements as indicated below: Which of the following accounting events could have caused these effects on Knight’s statements?
A. Made a payment on an installment loan.
B. Borrowed funds through a line-of-credit.
C. Amortized a bond premium.
D. Issued a bond at a discount.
or Waypoint 
.
