Question 1

To determine the six month interest payment amount on a bond,you would take one-half of the market rate times the face value of the bond.

Accepted Answer

A) True 
 B)False

Question 2

The Reagan Corporation issues 1,000,10-year,8%,$1,000 bonds dated January 1,2014,at 92.The journal entry to record the issuance will show a

Accepted Answer

A)  credit to Discount on Bonds Payable for $80,000.
B)  debit to Cash of $1,000,000.
C)  credit to Bonds Payable for $1,000,000.
D)  credit to Cash for $920,000.E) A) and B)
F) A) and C)

Question 3

If $2,000,000 of 10% bonds are issued at 95,the amount of cash received from the sale is

Accepted Answer

A)  $2,200,000
B)  $2,000,000
C)  $2,100,000
D)  $1,900,000E) A) and C)
F) B) and C)

Exam 12: Long-Term Liabilities: Bonds and Notes

The Reagan Corporation issues 1,000,10-year,8%,$1,000 bonds dated January 1,2014,at 92.The journal entry to record the issuance will show a

Correct Answer
verified

If $2,000,000 of 10% bonds are issued at 95,the amount of cash received from the sale is

Correct Answer
verified

To determine the six month interest payment amount on a bond,you would take one-half of the market rate times the face value of the bond.

Correct Answer
verified

Exam 12: Long-Term Liabilities: Bonds and Notes

The Reagan Corporation issues 1,000,10-year,8%,$1,000 bonds dated January 1,2014,at 92.The journal entry to record the issuance will show a

Correct AnswerverifiedShow Answer

If $2,000,000 of 10% bonds are issued at 95,the amount of cash received from the sale is

Correct AnswerverifiedShow Answer

To determine the six month interest payment amount on a bond,you would take one-half of the market rate times the face value of the bond.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified