Question

Question 4 When a bond is sold at a discount how is the difference between the bonds sale price and its face value? Not yet answered Marked out of 1.00 Flag question Select one: a. a credit to bond payable expense b. a credit to discounts on bond payable c. a debit to bond payable expense O d. a debit to discounts on bonds payable Question 5 Not yet answered What does the method of acquiring the patent affect? Select one: Marked out of 1.00 a. the book value of the patent P Flag question b. the useful life of the patent c. the selling price of the patent d. the purchase price of the patent Question 6 What two accounts are debited when recording the pay off of a bond? Not yet answered Marked out of Select one: O a. cash and bond interest 1.00 P Flag question O b. bond interest expense and bond payable O c. cash and bond payable O d. bond payable and bond discounts

Answer 1

1. When bond is sold at a discount the difference between its face value and sale price is (d) a debit to discounts on bond payable.

2. (b) The useful life of the patent affects the method of acquiring the patent.

3. (b) Bond interest expense and bond payable are the two accounts which are debited when recording pay off of a bond.