FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Enumerate the following;
32. |
Provides for recognition of an equal amount of premium or discount amortization each period.
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33. |
Bonds that mature in one lump sum at a specified future date.
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34. |
Bonds that provide for conversion into some other security at the option of the stockholder.
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35. |
Bonds that mature in a series of installments at future dates.
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36. |
The difference between the face value and the sales price when bonds are sold below their face value.
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37. |
Bonds for which assets are pledged to guarantee repayment.
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38. |
Obligations that are not expected to be paid in cash within one year or the normal operating cycle.
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39. |
Bonds that do not bear interest but instead are sold at significant discounts providing the investor with a total interest payoff at maturity.
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40. |
Costs incurred by the issuer for legal services, printing and engraving, taxes, and underwriting in connection with the sale of a bond. |
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- A $2,600 credit balance in the Premium on Bonds Payable account represents which of the following? Select one: a. An overpayment for a bond purchase b. An underpayment for a bond purchase c. The current amount of amortization expense d. The unamortized amount of premium earned on a bond issuearrow_forward5. Compute the price of $94,580,761 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.) Present value of the face amount Present value of the semiannual interest payments Price received for the bondsarrow_forwardb. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. Bonds Payable Cash Discount on Bonds Payable Interest Expense Interest Receivable 3. Determine the total interest expense for Year 1. Round to the nearest dollar. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest? 5. Compute the price of $23,854,460 received for the bonds by using Present value at compound interest, and Present value of an annuity. Round to the nearest dollar. Your total may vary slightly from the price given due to rounding differences. Present value of the face amount Present value of the semiannual interest payments Price received for the bondsarrow_forward
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