Question : 121.Refer to the information above. The journal entry made by : 1237430

Accounting

121.Refer to the information above. The journal entry made by Austin Corporation to record the first semiannual interest payment on the bonds includes:

A.A debit to Bond Interest Expense of $300,000.

B.A debit to Bond Interest Payable of $100,000.

C.A debit to Bond Interest Expense of $100,000.

D.A debit to Bond interest Expense of $200,000.

122.Refer to the information above. The amount of Austin’s interest expense on this bond issue during Year 2 amounts to:

A.$400,000.

B.$450,000.

C.$360,000.

D.$600,000.

$6,000,000 × 10% × 8/12 = $400,000

Salem Co. has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104. The bonds were issued at par and are selling today at a market price of 94.

123.Refer to the information above. If Salem Co. retires $10 million of these bonds by purchasing them from bondholders at current market price, the company will report:

A.A $600,000 gain.

B.A $500,000 loss.

C.A $700,000 gain.

D.Neither gains nor losses are recognized on early retirements of debt.

$10,000,000 – $9,400,000 = $600,000

124.Refer to the information above. If Salem Co. calls $10 million of these bonds it will report:

A.A $700,000 gain.

B.A $400,000 loss.

C.A $600,000 gain.

D.Neither gains nor losses are recognized on early retirements of debt.

$10,000,000 – $10,400,000 = $(400,000)

125.The amortization of a bond discount:

A.Decreases the carrying value of a bond and increases interest expense.

B.Decreases the carrying value of a bond and decreases interest expense.

C.Increases the carrying value of a bond and increases interest expense.

D.Increases the carrying value of a bond and decreases interest expense.

126.A $1,000 bond that sells for 104 has a selling price of:

A.$1,004.

B.$1,040.

C.$1,400.

D.$1,000.

127.If a bond is selling at 103, it is selling at:

A.Maturity value and yields a 2% interest rate.

B.A discount.

C.A premium.

D.$103 per bond.

128.Bonds, with the same face value, issued at a premium will:

A.Have a greater maturity value than a bond issued at a discount.

B.Have a lesser maturity value than a bond issued at a discount.

C.Have the same maturity value as a bond issued at a discount.

D.Have a different maturity value than a bond issued at a discount, depending upon the interest rate and maturity date.

129.The amortization of a bond premium:

A.Decreases the carrying value of a bond and increases interest expense.

B.Decreases the carrying value of a bond and decreases interest expense.

C.Increases the carrying value of a bond and increases interest expense.

D.Increases the carrying value of a bond and decreases interest expense.

130.A discount on bonds payable is best described as:

A.An element of future interest expense.

B.A bonus paid by the bondholders to the issuing corporation because of the unusually high interest rate stated in the bonds.

C.The present value of the future interest payments of bond interest and principal.

D.An amount below par which the bondholders may be called upon to make good.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.