Question :
167.A $300,000 bond issue with a carrying value of $311,000 : 1244136
167.A $300,000 bond issue with a carrying value of $311,000 is called at 103 and retired. The entry prepared would include
a.
a gain of $9,000.
b.
no gain or loss.
c.
a gain of $2,000.
d.
a loss of $9,000.
168.A $50,000 bond issue with a carrying value of $47,000 is called at 102 and retired. The entry prepared would include
a.
a loss of $1,000.
b.
a loss of $4,000.
c.
no gain or loss.
d.
a gain of $3,000.
169.When bonds are converted to common stock, which of the following could be part of the entry?
a.
Debit to Common Stock
b.
Credit to Unamortized Bond Discount
c.
Credit to Unamortized Bond Premium
d.
Credit to Gain on Conversion of Bonds
170.A company has $900,000 in bonds payable with an unamortized discount of $21,000. If two-thirds of the bonds are converted to common stock, the carrying value of the bonds payable will decrease by
a.
$586,000.
b.
$293,000.
c.
$628,000.
d.
$614,000.
171.A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. Which of the following statements is true?
a.
A loss of $8,000 is recorded
b.
A loss of $2,000 is recorded
c.
A gain of $6,000 is recorded
d.
No gain or loss is recorded
172.A $100,000 bond issue with a carrying value of $103,000 is called at 101 and retired. Which of the following statements is true?
a.
A loss of $2,000 is recorded
b.
A gain of $2,000 is recorded
c.
A loss of $3,000 is recorded
d.
No gain or loss is recorded
173.A bond issue of $50,000 with a carrying value of $49,000 is converted into $10 par value common stock at the rate of fifty shares for each $1,000 bond. Which of the following statements is true?
a.
A loss of $1,000 is recorded
b.
The Additional Paid-in Capital account is credited for $24,000
c.
The Unamortized Bond Discount account is debited for $1,000
d.
The Additional Paid-in Capital account is credited for $25,000
174.Hooper Corporation has bonds outstanding with a face value of $100,000 and a carrying value of $103,000 on December 31, 20×7. If the company calls in and retires these bonds on December 31, 20×7, for $105,000, the entry to record the retirement will include a
a.
debit to Bonds Payable for $103,000.
b.
credit to Cash for $103,000.
c.
debit to Loss on Retirement of Bonds for $2,000.
d.
debit to Loss on Retirement of Bonds for $3,000.
175.Bonds that contain a provision that allows the issuing corporation to buy back the bonds prior to the maturity date are called
a.
debenture bonds.
b.
secured bonds.
c.
callable bonds.
d.
convertible bonds.
176.When bonds payable are converted into stock, the carrying value of the bonds should be
a.
credited to contributed capital accounts.
b.
debited to Retained Earnings.
c.
debited to Loss on Conversion of Bonds.
d.
credited to Retained Earnings.
