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Question;10 fast questions1.A \$600,000 bond was retired at 98 when the carrying value of the bond was \$592,000. The entry to record the retirement would include a (Points: 2) gain on bond redemption of \$8,000. loss on bond redemption of \$8,000. loss on bond redemption of \$4,000. gain on bond redemption of \$4,000.Question 2. 2.Bond interest paid is (Points: 2) higher when bonds sell at a discount. lower when bonds sell at a premium. the same whether bonds sell at a discount or a premium. higher when bonds sell at a discount and lower when bonds sell at a premium.Question 3. 3.A bond with a face value of \$200,000 and a quoted price of 102? has a selling price of (Points: 2) \$240,450. \$204,050. \$200,450. \$204,500.Question 4. 4.Lake Company received proceeds of \$188,500 on 10-year, 8% bonds issued on January 1, 2011. The bonds had a face value of \$200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Lake uses the straight-line method of amortization.What is the amount of interest Lake must pay the bondholders in 2011? (Points: 2) \$15,080 \$16,000 \$17,150 \$14,850Question 5. 5.Jarmin Company received proceeds of \$188,500 on 10-year, 8% bonds issued on January 1, 2011. The bonds had a face value of \$200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Jarmin uses the straight-line method of amortization.What is the carrying value of the bonds on January 1, 2013? (Points: 2) \$200,000 \$190,800 \$197,700 \$189,650Question 6. 6.A \$600,000 bond was retired at 103 when the carrying value of the bond was \$622,000. The entry to record the retirement would include a (Points: 2) gain on bond redemption of \$18,000. loss on bond redemption of \$12,000. loss on bond redemption of \$18,000. gain on bond redemption of \$4,000.Question 7. 7.If bonds with a face value of \$150,000 are converted into common stock when the carrying value of the bonds is \$135,000, the entry to record the conversion will include a debit to (Points: 2) Bonds Payable for \$150,000. Bonds Payable for \$135,000. Discount on Bonds Payable for \$15,000. Bonds Payable equal to the market price of the bonds on the date of conversion.Question 8. 8.A bond trustee does not (Points: 2) issue the bonds. keep a record of each bondholder. hold conditional title to pledged property. maintain custody of unsold bonds.Question 9. 9.Lark Corporation retires its \$800,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is \$829,960. The entry to record the redemption will include a (Points: 2) credit of \$10,040 to Loss on Bond Redemption. debit of \$10,040 to Loss on Bond Redemption. credit of \$10,040 to Premium on Bonds Payable. debit of \$40,000 to Premium on Bonds Payable.Question 10. 10.Hernandez Corporation issues 3,000, 10-year, 8%, \$1,000 bonds dated January 1, 2012, at 98. The journal entry to record the issuance will show a (Points: 2) debit to Cash of \$3,000,000. credit to Discount on Bonds Payable for \$60,000. credit to Bonds Payable for \$3,040,000. debit to Cash for \$2,960,000.

Paper#38244 | Written in 18-Jul-2015

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