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117.
Refer to the information above. On April 1, Year 1, the journal entry to record issuance of
the bonds will include:
118.
Refer to the information above. With respect to this bond issue, Greenway's balance sheet
at December 31, Year 1, will include:
Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1.
The bonds are issued on April 30, Year 2, at 100 plus accrued interest. Interest on the
bonds is payable semiannually each June 30 and December 31.
119.
Refer to the information above. The total amount of cash received by Austin Corporation
upon issuance of the bonds on April 30, Year 2, is:
120.
Refer to the information above. The entry to record the issuance of bonds payable on April
30, Year 2, includes:
121.
Refer to the information above. The journal entry made by Austin Corporation to record the
first semiannual interest payment on the bonds includes:
122.
Refer to the information above. The amount of Austin's interest expense on this bond
issue during Year 2 amounts to:
Salem Co. has outstanding $100 million of 7% bonds, due in 7 years, and callable at 104.
The bonds were issued at par and are selling today at a market price of 94.
123.
Refer to the information above. If Salem Co. retires $10 million of these bonds by
purchasing them from bondholders at current market price, the company will report:
124.
Refer to the information above. If Salem Co. calls $10 million of these bonds it will report:
125.
The amortization of a bond discount:
126.
A $1,000 bond that sells for 104 has a selling price of:
127.
If a bond is selling at 103, it is selling at:
128.
Bonds, with the same face value, issued at a premium will:
129.
The amortization of a bond premium:
130.
A discount on bonds payable is best described as:
131.
Amortizing a discount on bonds payable:
132.
Premium on bonds payable:
133.
Amortizing a premium on bonds payable:
10-70
134.
On February 28, 2015, $5,000,000 of 6%, 10-year bonds payable, dated December 31,
2014, are issued. Interest on the bonds is payable semiannually each June 30 and
December 31. If the total amount received (including accrued interest) by the issuing
corporation is $5,060,000, which of the following is correct?
Webster Company issues $1,000,000 face value, 6%, 5-year bonds payable on December
31, 2015. Interest is paid semiannually each June 30 and December 31. The bonds sell at a
price of 97; Webster uses the straight-line method of amortizing bond discount or
premium.
135.
Refer to the information above. The entry made by Webster Company to record issuance
of the bonds payable at December 31, 2015, includes:
136.
Refer to the information above. Webster's entry at June 30, 2016, to record the first
semiannual payment of interest and amortization of discount on the bonds includes a:
137.
Refer to the information above. The amount of bond interest expense recognized by
Webster Company in 2016 with respect to these bonds is:
10-73
138.
Refer to the information above. The carrying value of this liability in Webster Company's
December 31, 2016, balance sheet is:
Trego Company issued, on December 31, 2015, $1,000,000 face value, 4%, 5-year bonds.
Interest will be paid semiannually each June 30 and December 31. The bonds sold at a
price of 102; Trego uses the straight-line method of amortizing bond discount or premium.
139.
Refer to the information above. The entry made by Trego Company to record issuance of
the bonds payable at December 31, 2015, includes:
140.
Refer to the information above. Trego's entry at June 30, 2016, to record the first
semiannual payment of interest and amortization of discount/premium on the bonds
includes a:
141.
Refer to the information above. The amount of bond interest expense recognized by Trego
Company in 2016 with respect to these bonds is:
142.
Refer to the information above. The carrying value of this liability in Trego Company's
December 31, 2016, balance sheet is:
143.
After bonds have been issued, their market value can be expected to:
144.
The amount of the present value of a future cash receipt will depend upon:
145.
The price at which a bond sells is equal to the:
146.
The present value of an amount is:
147.
A call provision on a bond:
148.
Sand, Inc. has outstanding $5,000,000, 10%, 20-year bonds. The bonds are callable at 104
on any interest date. The bonds were issued at par and mature in 10 years. Recently,
interest rates have declined to 5% and the market price of the bonds has increased to 107.
If the company exercises the call provision, the company will record
149.
Which of the following is an example of a loss contingency that should be disclosed in a
footnote to a company's financial statements?
150.
Which of the following is
not
a characteristic of an estimated liability?
