Problem 1MC: An amortization table ________. A. breaks each payment into the amount that goes toward interest and... Problem 2MC: A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to... Problem 3MC: The principal of a bond is ________. A. the person who sold the bond for the company B. the person... Problem 4MC: A convertible bond can be converted into ________. A. preferred stock B. common stock and then... Problem 5MC: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000... Problem 6MC: On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest... Problem 7MC: On January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest... Problem 8MC: On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is... Problem 9MC: On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market... Problem 10MC: The effective-interest method of bond amortization finds the difference between the ________ times... Problem 11MC: When a bond sells at a discount, the carrying value ________ after each amortization entry. A.... Problem 12MC: The International Financial Reporting Standards require the use of ________. A. any method of... Problem 13MC: The cash interest payment a corporation makes to its bondholders is based on ________. A. the market... Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the... Problem 15MC: Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018,... Problem 16MC: Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal... Problem 17MC: Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal... Problem 18MC: OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000.... Problem 19MC: Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for... Problem 20MC: The difference between equity financing and debt financing is that A. equity financing involves... Problem 1Q: What is the difference between callable and putable bonds? Problem 2Q: What is the difference between serial bonds and term bonds? Problem 3Q: What is a junk bond? Problem 4Q: How are savings bonds different from a corporate bond? Problem 5Q: What do you have to do to the interest rate and years of maturity if a bond pricing problem tells... Problem 6Q: An amortization table/schedule is created to compute the amount to be amortized each year. What are... Problem 7Q: In the amortization table, how is the amortization of discount of premium computed? Problem 8Q: Does issuing a bond at a discount increase or decrease interest expense over the life of the bond? Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds... Problem 10Q: Why is the effective-interest method of amortization required under the International Financial... Problem 11Q: If there is neither a premium nor discount present, the journal entry to record bond interest... Problem 12Q: When do you use the Bond Discount Account? Problem 13Q: A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market... Problem 14Q: A company issued $100,000, 5-year bonds, receiving $97,000. What is the balance sheet presentation... Problem 15Q: Does interest expense increase or decrease when a bond premium is amortized? Problem 1EA: Halep Inc. borrowed $30,000 from Davis Bank and signed a 4-year note payable stating the interest... Problem 2EA: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the... Problem 3EA: Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the... Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated... Problem 5EA: Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The... Problem 6EA: Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received... Problem 7EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The... Problem 8EA: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay... Problem 9EA: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The... Problem 10EA: Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay... Problem 11EA: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay... Problem 1EB: Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the... Problem 2EB: Waylan Sisters Inc. issued 3-year bonds with a par value of $100,000 and a 6% annual coupon when the... Problem 3EB: Smashing Cantaloupes Inc. issued 5-year bonds with a par value of $35,000 and an 8% semiannual... Problem 4EB: Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market... Problem 5EB: Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%.... Problem 6EB: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are... Problem 7EB: Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received... Problem 8EB: Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received... Problem 9EB: Roo Incorporated issued 50 bonds with a face value of $1,000 and a stated rate of 6% when the market... Problem 10EB: Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and... Problem 11EB: Lunar Corporation issued $80,000 in bonds for $87,000 on Jan. 1. The bonds had a stated rate of 8%... Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%... Problem 2PA: On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The... Problem 3PA: Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of... Problem 4PA: Evie Inc. issued 50 bonds with a $1,000 face value, a five-year life, and a stated annual coupon of... Problem 5PA: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July... Problem 6PA: Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 1PB: Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and will repay the loan with 12 equal payments made at... Problem 2PB: Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity... Problem 3PB: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What... Problem 4PB: Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total... Problem 5PB: Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 6PB: Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1,... Problem 2TP: Below is select information from two, independent companies. Additional information includes: On... Problem 3TP: Assume you are a newly-hired accountant for a local manufacturing firm. You have enjoyed working for... format_list_bulleted
