A $300,000 bond was redeemed at 103 when the carrying value of the bond was $311,000. The entry to record the redemption would include a a) loss on bond redemption of $2,000. b) gain on bond redemption of $2,000. c) gain on bond redemption of $9,000. d) loss on bond redemption of $9,000. (Points: 1) Sunwood Company issued $200,000 of 6%, 5-year bonds at 98. Assuming straight-line amortization and annual interest payments, how much bond interest expense is recorded on the next interest date? a. $6,000 b. $12,000 c. $12,400 d. $12,800 if Lesser Company issues 1,000 shares of $5 par value common stock for $70,000, the account a. Cash will be debited for $65,000. b. Common stock will be credited for $70,000. c. Paid-in capital in excess of par value will be credited for $5,000. d. Paid-in capital in excess of par value will be credited for $65,000. If an investor owns less than 20% of the common stock of another corporation as an investment a. it is presumed that the investor has relatively little influence on the investee. b. it is presumed that the investor has significant influence on the investee. c. the equity method of accounting for the investment should be employed. d. no dividends can be expected. When a company owns more than 50% of the common stock of another company a. consolidated financial statements are prepared. b. affiliated financial statements are prepared. c. significant financial statements are prepared. d. controlling financial statements are prepared. What section of a cash flow statement indicates the cash spent on new equipment during the past accounting period? a. The financing section b. The cash flow statement does not give this information c. The investing section d. The operating section At December 31, 2003, before any year-end adjustments, Bollis Company's Prepaid Insurance account had a balance of $2,325. It was determined that $1,500 of the Prepaid Insurance had expired. The adjusted balance for Insurance Expense for the year would be a. $1,500 b. $825 c. $2,325 d. $3,825 If a company fails to adjust an Unearned Rent account for rent that has been earned, what effect will this have on that month?s financial statements? a. Liabilities will be understated and revenues will be understated. b. Assets will be understated and revenues will be understated. c. Liabilities will be overstated and revenues will be understated. d. Assets will be overstated and revenues will be understated.
Paper#12815 | Written in 18-Jul-2015Price : $25