When will bonds sell at a discount?

When will bonds sell at a discount? A) The issuing company will be able to retire the bonds at less than face at maturity B) The credit standing of...

The Kaplan group sold $200,000 of 10 year bonds for $190,000. The rate on the face of the bonds was 8% and interest is payable annually on December 1st. What entry would be made on December 1st when the interest is paid?

The Kaplan group sold $200,000 of 10 year bonds for $190,000. The rate on the face of the bonds was 8% and interest is payable annually on December...

If bonds were initially issued at a discount, the carrying value of the bonds on the issuer's books will

If bonds were initially issued at a discount, the carrying value of the bonds on the issuer's books will A) Fluctuate throughout the bonds' life B)...

Which of the following lease conditions would result in a capital lease to the lessee?

Which of the following lease conditions would result in a capital lease to the lessee? A) The fair market value of the property at the inception...

When will bonds sell at a premium?

When will bonds sell at a premium? A) The state rate of interest is more than the market rate at the time of the issue B) The credit standing of...

Which of the following would describe a callable bond?

Which of the following would describe a callable bond? A) Borrower has the right to pay off the bonds prior to the due date B) Borrower has the right...

Long-term debt generally includes

Long-term debt generally includes  A) Accounts payable, because they are interest bearing B) Obligations that will be satisfied within one year C)...

A graphics deign company issued bonds in the same amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the bonds are due in 10 years, what is the total amount of interest that would be paid over the life of the bonds?

A graphics deign company issued bonds in the same amount of $1,000,000 with a stated interest rate of 8%. If the interest is paid semiannually and the...

If bonds were initially issued at a discount, the crying value of the bonds on the issuer's books will

If bonds were initially issued at a discount, the crying value of the bonds on the issuer's books will  A) Increase as the bonds approach their...

With the effective interest method of amortization, the amortization of a bond premium results in a(n)

With the effective interest method of amortization, the amortization of a bond premium results in a(n) A) Increase in liabilities B) Decrease of stockholders'...

With the effective interest method of amortization, the amortization of a bond discount results in a(n):

With the effective interest method of amortization, the amortization of a bond discount results in a(n):  A) Increase in stockholders' equity B)...

If bonds were initially issued at a discount, the interest expense on the bonds calculated using the effective interest method will:

If bonds were initially issued at a discount, the interest expense on the bonds calculated using the effective interest method will: A) Decrease as...

Which of the following statements about bond accounting under the effective interest method is correct?

Which of the following statements about bond accounting under the effective interest method is correct? A) The cash interest paid is calculated as...

Under the effective inters method, the cash paid on each interest payment date will:

Under the effective inters method, the cash paid on each interest payment date will: A) Decrease if bonds are issued at a premium B) Increase if...

The bond issue price is determined by calculating the:

The bond issue price is determined by calculating the: A) Present value of the stream of interest payments and the future value of the maturity amount. B)...

Banister Company wishes to issue $600,000 of 10-year, 7% bonds, with interest paid annually at the end of the year. The market rate of interest is currently 5%. What information is needed in order to determine the issue price of the bond?

Banister Company wishes to issue $600,000 of 10-year, 7% bonds, with interest paid annually at the end of the year. The market rate of interest is currently...

Which of the following statements regarding contingent liabilities is true?

Which of the following statements regarding contingent liabilities is true? A) If they are probable and estimable, then they must be recorded even...

Which of the following accounts would NOT appear on the balance sheet of a lessee company recording a capital lease?

Which of the following accounts would NOT appear on the balance sheet of a lessee company recording a capital lease? A) Accumulated depreciation on...

Which of the following lease conditions would result in a capital lease to the lessee?

Which of the following lease conditions would result in a capital lease to the lessee? A) The lessee will return the proper of the lessor at the...

If a company's bonds are callable:

If a company's bonds are callable: A) The bondholder has the right to sell an option on the bond B) The issuing company is likely to retire the bonds...

Which of the following would describe a callable bond?

Which of the following would describe a callable bond? A) Borrower has the right to pay off the bonds prior to due date B) Borrower has the right...

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount:

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount: A) Less than face value B)...

If bonds are issued at 101.25, this means that:

If bonds are issued at 101.25, this means that: A) A $1,000 bond sold for $101.25 B) The bonds sold at a discount C) A $1,000 bonds sold for $1,012.50 D)...

Which of the following statements regarding amortization is true?

Which of the following statements regarding amortization is true? A) Amortization of the premium causes the premium on bonds payable account to...

If bonds were initially issued at a premium, the carrying value of the bonds on the issuer's books will:

If bonds were initially issued at a premium, the carrying value of the bonds on the issuer's books will: A) Decrease as the bonds approach their...

When determining the amount of interest to be paid on a bond, which of the following information is necessary?

When determining the amount of interest to be paid on a bond, which of the following information is necessary? A) The market value of the bonds after...

The premium on bonds payable account is shown on the balance sheet as:

The premium on bonds payable account is shown on the balance sheet as: A) A contra asset B) A reduction of an expense C) As an increase in equity...

The Discount on Bonds Payable account is shown on the balance sheet as:

The Discount on Bonds Payable account is shown on the balance sheet as: A) An asset B) An expense C) A contra-liablity D) As a reduction in equity...

When bonds are sold for less than the face amount, this means that the:

When bonds are sold for less than the face amount, this means that the: A) Maturity value will be less than the face amount B) Maturity value will...

When bonds are issued by a company, the accounting entry shows an:

When bonds are issued by a company, the accounting entry shows an: A) Increase in liabilities and a decrease in equity B) Increase in liabilities...

When will bonds sell at a discount?

When will bonds sell at a discount? A) The credit standing of the issuing company is not as good as other companies in a similar line of business B)...

Bonds are sold at a premium if the:

Bonds are sold at a premium if the: A) Issuing company has a better reputation than other companies in the same business B) Market rate of interest...

Long-term liabilities generally include:

Long-term liabilities generally include: A) Liabilities related to long-term assets B) Accounts payable, because they are interest-bearing C) Obligations...

The portion of long-term debt due within one year should:

The portion of long-term debt due within one year should: A) Be classified as a long-term liability B) Not be separated from the long-term portion...

The amount of federal income taxes withheld from employee's gross pay is recorded as a:

The amount of federal income taxes withheld from employee's gross pay is recorded as a: A) Payroll expense B) Contra account C) Current asset D) Current...

Which of the following would most likely be classified as a current liability?

Which of the following would most likely be classified as a current liability? A) Two-year payable B) Bonds payable C) Mortgage payable D) Portion...

The interest charged by the bank, at the rate of 9%, on a 3-month, discounted notes payable for $100,000 is:

The interest charged by the bank, at the rate of 9%, on a 3-month, discounted notes payable for $100,000 is: A) $9,000 B) $2,250 C) $750 D) $1,000 Answer:...

The journal entry to record the payment of an ordinary notes is:

The journal entry to record the payment of an ordinary notes is: A) Debit cash; credit notes payable B) Debit cash; credit accounts payable C) Debit...

The journal entry to record the insurance of note for the purpose of borrowing funds is:

The journal entry to record the insurance of note for the purpose of borrowing funds is: A) Debit accounts payable; credit notes payable B) Debit cash;...

Current liabilities are:

Current liabilities are: A) Due, but no receivable for more than one year B) Due, but no payable for more than one year C) Due and receivable within...