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I need some help. I do not have any time. I do not need detailed answers. Just need to find the answers. all mutliple choice... (TCO D) A bond discount should be shown on the balance sheet as (Points: 4) an asset. a contra account to bonds payable. a reduction of stockholders' equity. both an asset and a liability. 2. (TCO D) A corporation borrowed money from a bank to build a building. The long-term note signed by the corporation is secured by a mortgage that pledges title to the building as security for the loan. The corporation is to pay the bank $80,000 each year for ten years to repay the loan. Which of the following relationships can you expect to apply to the situation? (Points: 4) The balance of mortgage payable at a given balance sheet date will be reported as a long-term liability. The balance of mortgage payable will remain a constant amount over the ten-year period. The amount of interest expense will decrease each period the loan is outstanding, while the portion of the annual payment applied to the loan principal will increase each period. The amount of interest expense will remain constant over the ten-year period. 3. (TCO D) On January 1, 2010, Ellison Co. issued eight-year bonds with a face value of $1,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: The present value of the interest is (Points: 4) $344,820. $349,560. $372,600. $376,830. 4. (TCO D) On January 1, 2010, Jacobs Company sold property to Dains Company which originally cost Jacobs $760,000. There was no established exchange price for this property. Danis gave Jacobs a $1,200,000 zero-interest-bearing note payable in three equal annual installments of $400,000 with the first payment due December 31, 2010. The note has no ready market. The prevailing rate of interest for a note of this type is 10%. The present value of a $1,200,000 note payable in three equal annual installments of $400,000 at a 10% rate of interest is $994,800. What is the amount of interest income that should be recognized by Jacobs in 2010, using the effective-interest method? (Points: 4) $0. $40,000. $99,480. $120,000. 5. (TCO D) On June 30, 2011, Omara Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2021. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2011 were $105,000 and $30,000, respectively. On June 30, 2011, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt? (Points: 4) $2,970,000. $2,895,000. $2,865,000. $2,820,000.

 

Paper#9289 | Written in 18-Jul-2015

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