On January 1, a company issued and sold a $398,000, 6%, 10-year bond payable, and received proceeds of $393,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
Multiple Choice
Debit Bond Interest Expense $11,690; debit Discount on Bonds Payable $250; credit Cash $11,940.
Debit Bond Interest Expense $12,190; credit Cash $11,940; credit Discount on Bonds Payable $250.
Debit Bond Interest Expense $23,880; credit Cash $23,880.
Debit Bond Interest Expense $11,940; credit Cash $11,940.
Debit Bond Interest Expense $11,940; debit Discount on Bonds Payable $250; credit Cash $12,190.
On January 1, a company issued and sold a $398,000, 6%, 10-year bond payable, and received...
On January 1, a company issued and sold a $397,000, 5%, 10-year bond payable, and received proceeds of $392,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Debit Bond Interest Expense $9,675; debit Discount on Bonds Payable $250; credit Cash $9,925. Debit Bond Interest Expense $9,925; credit Cash $9,925. Debit Bond Interest Expense $10,175; credit Cash $9,925; credit Discount...
On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds of $381,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is: Multiple Choice $390,000. $389,550 $380,550 $381,900. $381,450.
On January 1, a company issued and sold a $450,000, 3%, 10-year bond payable, and received proceeds of $444,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is: Multiple Choice $450,000. $449,700. $450,300. $443,700. $444,300.
5) On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the first interest payment is: A) $400,000 B) $399,800. C) $400,200. D) $395,800. E) $396,200.
On January 1, We Grow Awesome Grass issued and sold a $350,000, 6%, 10-year bond payable, and received proceeds of $375,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the premium. The carrying value of the bonds immediately after the first interest payment is: $376,250. $351,250. $348,750. $373,750. $350,000.
14 Ch. 9 8 10 90 min.) Help Save & Ex Submit On January 1, a company issued and sold a $391,000,7%, 10 year bond payable and received proceeds of $386.000. Interesi payable each Jurve 30 and December 31. The company uses the straight line method to amortize the discount. The journal entry to record the first interest payment is Multiple Choice Debit Bond Interest Expense $13,685 Credit Cash $13.685 Debit Dond Interest Expense 5130 Credit Cash $13689 Credit Discount...
MULTIPLE CHOICE QUESTIONS 1. The legal contract between the issuing corporation and the bondholders is called the bond indenture A) True B) False 2.One of the similarities of bond and equity financing is that both dividends and equity distribution payments are tax deductible. C) True D) False 3. Interest on bonds is tax deductible. E) True >F) False 2. The relationship between the market rate of a bond and the rate of return on the borrowed funds affects the company's...
On January 1, a company issued a $500,000, 10%, 8-year bond payable, and received proceeds of $473,845. Interest is payable each June 30 and December 31. The total interest expense on the bond over its eight-year life is $400,000. True or false
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Khaled’s company issued and sold $500,000 bond payable on January 1, 2019, with an interest rate of 6%, 5-year and received $465,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. Prepare the journal entries to record these transactions on January 1st, at the first interest payment and at the maturity date?