I am working on the questions now, but for future posts, when you intend to address your questions to me, kindly type "For BusinessTutor" at the beginning of the post so that no other expert signs the post out.
Please check the choices for number 6. The correct answer should be $98,000 and that is not among the choices
This is what i have done so far so that you start entering the solutions:
True2) If bonds sell at a premium, the interest expense recognized each year will be greater than the bond interest paid. True or False?
3) If the market rate of interest is greater than the contractual rate of interest, bonds will sell at a discount. True or False?
True4) The interest charged on a $100,000 note payable, at the rate of 6%, on a 90-day note would be A) 500 B) 3,333 C) 6,000 D) 1,500
5) On January 1, 2007, Dunnon Company, a calendar-year company, issued $600,000 of notes payable, of which $150,000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2007, is Current Liabilities, $300,000; Long-term Debt, $300,000. Current Liabilities, $150,000; Long-term Debt, $450,000. Current Liabilities, $600,000. Long-term Debt , $600,000.
6) A bond with a face value of $100,000 and a quoted price of 98has a selling price of $98,250. $98,005. $98,500. $98,050.
7) On January 1, 2007, $1,000,000, 10-year, 10% bonds, were issued for $970,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is $9,700. $250. $808. $3,000. 8) Lopez Corporation issues 500, 10-year, 8%, $1,000 bonds dated January 1, 2007, at 96. The journal entry to record the issuance will show a debit to Cash for $480,000. debit to Cash of $500,000. credit to Discount on Bonds Payable for $20,000. credit to Bonds Payable for $480,000 9) Two thousand bonds with a face value of $1,000 each, are sold at 102. The entry to record the issuance is Cash 2,040,000 Discount on Bonds Payable 40,000 Bonds Payable 2,000,000 Cash 2,040,000 Bonds Payable 2,040,000 Cash 2,000,000 Premium on Bonds Payable 40,000 Bonds Payable 2,040,000 Cash 2,040,000 Premium on Bonds Payable 40,000 Bonds Payable 2,000,000 10) Golden Company received proceeds of $94,250 on 10-year, 8% bonds issued on January 1, 2006. The bonds had a face value of $100,000, pay interest annually on December 31st, and have a call price of 101. Golden uses the straight-line method of amortization. What is the amount of interest Golden must pay the bondholders in 2006? $7,540 $8,575 $8,000 $7,425 11) Sunwood Company issued $500,000 of 6%, 5-year bonds at 98, which pays interest annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year? $490,000 $492,000 $494,000 $491,000 12) The declining-balance method of depreciation is called an accelerated depreciation method because it depreciates an asset in a shorter period of time than the asset's useful life.True or False?
True 13) A loss on disposal of a plant asset occurs if the cash proceeds received from the asset sale is less than the asset's book value.True or False?
19) Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years. The depreciation expense using the straight-line method of depreciation is $17,500 $18,000 $12,500 none of the above 20) Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years. The book value of the equipment at the beginning of the third year would be $75,000 $25,000 $90,000 $65,000 21) A company sells a plant asset that originally cost $180,000 for $60,000 on December 31, 2007. The accumulated depreciation account had a balance of $90,000 after the current year's depreciation of $15,000 had been recorded. The company should recognize a $60,000 loss on disposal. $30,000 loss on disposal. $30,000 gain on disposal. $60,000 gain on disposal.
Thanks a million for the bonus. When do you get to know the results?
Thanks a million Brian, but i wish i did not get of them wrong. I can't believe it that i missed this one though. Of course it is false because the double declining method assigns a higher depreciation expense to earlier years than later years, but the useful life remains the same. STUPID ME, i should be hung for this :)
Thank you all the same Brian, and remember i am always here if you need future help, just do not forget to type "For BusinessTutor" at the beginning of your post.
I do, i hate it when i miss a question (which is why i have a 4.0 GPA :)
Looking forward to work with you again too Brian, thanks a million for your kind words