A) Is a series of payments to property owners in exchange for use of the property B) Gives the lessee exclusive control over an asset's usefulness C) Allows a lessor to earn revenues from a rental property D) May be operating or finance E) All of these A) Is a series of payments to property owners in exchange for use of the property B) Gives the lessee exclusive control over an asset's usefulness C) Allows a lessor to earn revenues from a rental property D) May be operating or finance E) All of these

A) Can be exchanged for a fixed number of the issuing corporation's common shares B) Do not require payment of interest over the life of the bond issue C) Have an option whereby the issuing corporation may redeem them under specified conditions D) Are usually not registered E) Are also called debentures A) Can be exchanged for a fixed number of the issuing corporation's common shares B) Do not require payment of interest over the life of the bond issue C) Have an option whereby the issuing corporation may redeem them under specified conditions D) Are usually not registered E) Are also called debentures

Exam 6: Bonds and Long-Term Notes Payable

On January 1,2019,a $60,000,6%,6-year installment note payable is issued by the Asada Corporation.The note requires that $10,000 of principal plus accrued interest be paid at the end of each year (December 31).The journal entry to record the second annual payment would include

(Multiple Choice)

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Question 121

Cannon Ltd bought display racks with a fair market value of $150,000.The corporation signed a 3-year interest-bearing note at 8%.The entry to record the transaction would include

(Multiple Choice)

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Question 122

Tab Skates Ltd issued $100,000 worth of 5-year,7% bonds and received proceeds of $96,909.The total bond discount would be $10,091.

(True/False)

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Question 123

SuperBowlInc retired $200,000 (par value)bonds with a carrying value of $203,492.The market value of the bonds was $202,500.The corporation recognized a loss on retirement of $2,500.

(True/False)

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Question 124

To determine the discount on a bond the issuing value is deducted from the par value of the bonds.

(True/False)

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Question 125

The Discount on Bonds Payable account is

(Multiple Choice)

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Question 126

On January 1, 2021, Blue Hat Company issues a bond with a maturity on December 31, 2021. The market rate is 7%. Coupon rate is 6%. Interest is paid each June 30 and December 31. Assume at Dec 31, year end. Blue Hat Company's accounting staff properly prepared a bond amortization schedule below. -Prepare the entry to record the first interest payment.Date the entry.

(Essay)

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Question 127

A lease

(Multiple Choice)

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Question 128

If a bond's interest period does not coincide with the issuing corporation's accounting period,an adjusting entry is necessary to recognize bond interest expense accruing since the most recent interest payment.

(True/False)

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Question 129

Payments on installment notes normally include interest accruing to the date of the payment plus a portion of the principal.

(True/False)

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Question 130

A premium on bonds payable arises when the bonds carry a contract rate greater than the current market rate.

(True/False)

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Question 131

Varig Ltd has $300,000,10% bonds outstanding,which have matured.Prepare the journal entry to retire the bonds.

(Essay)

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Question 132

Bonds that give the issuer an option of retiring them before they mature are known as

(Multiple Choice)

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Question 133

Amiga Inc issued $100,000,7% semi-annual,5-year bonds.The market rate at the time of issue was 7.5%.Using the effective interest method,the present value of the bond is

(Multiple Choice)

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Question 134

An operating lease is a lease agreement that transfers the risks and benefits associated with ownership to the lessee.

(True/False)

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Question 135

Callable bonds

(Multiple Choice)

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Question 136

On January 1, 2021, Blue Hat Company issues a bond with a maturity on December 31, 2021. The market rate is 7%. Coupon rate is 6%. Interest is paid each June 30 and December 31. Assume at Dec 31, year end. Blue Hat Company's accounting staff properly prepared a bond amortization schedule below. -What is the face value of the bond?

(Short Answer)

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Question 137

Watrous Corporation purchased two new delivery vans for $85,000 on December 31,2019.Watrous $10,000 and signed a $75,000,5-year,12% note for the balance.The note is to be paid off in five annual payments beginning December 31,2020.Assume the installments are to consist of equal amounts of principal plus accrued interest.Prepare the journal entries to record the purchase and the second installment on December 31,2020.

(Essay)

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Question 138

Celera Inc received proceeds of $164,992 on a bond issue with a par value of $200,000.The difference between par value and issue price is recorded as a

(Multiple Choice)

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Question 139

Explain the types and payment patterns of notes payable.

(Essay)

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Question 140

Showing 121 - 140 of 164

On January 1,2019,a $60,000,6%,6-year installment note payable is issued by the Asada Corporation.The note requires that $10,000 of principal plus accrued interest be paid at the end of each year (December 31).The journal entry to record the second annual payment would include

Cannon Ltd bought display racks with a fair market value of $150,000.The corporation signed a 3-year interest-bearing note at 8%.The entry to record the transaction would include

Tab Skates Ltd issued $100,000 worth of 5-year,7% bonds and received proceeds of $96,909.The total bond discount would be $10,091.

SuperBowlInc retired $200,000 (par value)bonds with a carrying value of $203,492.The market value of the bonds was $202,500.The corporation recognized a loss on retirement of $2,500.

To determine the discount on a bond the issuing value is deducted from the par value of the bonds.

The Discount on Bonds Payable account is

A lease

If a bond's interest period does not coincide with the issuing corporation's accounting period,an adjusting entry is necessary to recognize bond interest expense accruing since the most recent interest payment.

Payments on installment notes normally include interest accruing to the date of the payment plus a portion of the principal.

A premium on bonds payable arises when the bonds carry a contract rate greater than the current market rate.

Varig Ltd has $300,000,10% bonds outstanding,which have matured.Prepare the journal entry to retire the bonds.

Bonds that give the issuer an option of retiring them before they mature are known as

Amiga Inc issued $100,000,7% semi-annual,5-year bonds.The market rate at the time of issue was 7.5%.Using the effective interest method,the present value of the bond is

An operating lease is a lease agreement that transfers the risks and benefits associated with ownership to the lessee.

Callable bonds

Celera Inc received proceeds of $164,992 on a bond issue with a par value of $200,000.The difference between par value and issue price is recorded as a

Explain the types and payment patterns of notes payable.

Property, plant and Equipment Intangibles

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income, earnings Per Share, and Retained Earnings

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

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