Question : 121. Bonds Payable has a balance of $1,000,000 and Discount Bonds : 1239303

121. Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000.  If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? 
A. $10,000 loss
B. $25,000 loss
C. $25,000 gain
D. $15,000 gain

122. Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000.  If the issuing corporation redeems the bonds at 103, what is the amount of gain or loss on redemption? 
A. $1,200 loss
B. $1,200 gain
C. $17,000 loss
D. $17,000 gain

123. A $300,000 bond was redeemed at 98 when the carrying value of the bond was $296,000.  The entry to record the redemption would include a 
A. loss on bond redemption of $4,000.
B. gain on bond redemption of $4,000.
C. gain on bond redemption of $2,000.
D. loss on bond redemption of $2,000.

124. A $300,000 bond was redeemed at 104 when the carrying value of the bond was $315,000.  The entry to record the redemption would include a 
A. loss on bond redemption of $3,000.
B. gain on bond redemption of $3,000.
C. gain on bond redemption of $4,000.
D. loss on bond redemption of $4,000.

125. Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500.  If the issuing corporation redeems the bonds at 98.5, what is the amount of gain or loss on redemption? 
A. $500 loss
B. $15,500 loss
C. $15,500 gain
D. $500 gain

126. Bonds Payable has a balance of $1,000,000 and Premium on Bonds Payable has a balance of $7,000.  If the issuing corporation redeems the bonds at 101, what is the amount of gain or loss on redemption? 
A. $3,000 loss
B. $3,000 gain
C. $7,000 loss
D. $7,000 gain

127. When the bonds are sold for more than their face value, the carrying value of the bonds is equal to 
A. face value
B. face value plus the unamortized discount
C. face value minus the unamortized premium
D. face value plus the unamortized premium

128. The balance in Discount on Bonds Payable 
A. should be reported on the balance sheet as an asset because it has a debit balance
B. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method
C. would be added to the related bonds payable to determine the carrying amount of the bonds
D. would be subtracted from the related bonds payable on the balance sheet

129. The balance in Discount on Bonds Payable that is applicable to bonds due in 2015 would be reported on the balance sheet in the section entitled 
A. investments
B. long-term liabilities
C. current assets
D. intangible assets

130. The balance in Premium on Bonds Payable 
A. should be reported on the balance sheet as a deduction from the related bonds payable
B. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method
C. would be added to the related bonds payable on the balance sheet
D. should be reported in the paid-in capital section of the balance sheet