Multiple Choice
The Amazing Widget Company issues $500,000 of 6%,10-year bonds at 103 on March 31,2014.The bond pays interest on March 31 and September 30.The market rate of interest on the issuance date was 4%.Assume the company uses the straight-line method for amortization.What net balance will be reported for the bonds on the balance sheet on September 30,2014?
A) $500,000.
B) $515,000.
C) $514.250.
D) $515,250.
Correct Answer:
Verified
Correct Answer:
Verified
Q23: The time value of money is based
Q24: On November 1,2015,Archangel Services issued $200,000 of
Q25: Interest payable would normally be shown on
Q26: On January 2,2014,Mahoney Sales issued $10,000 in
Q27: The Amazing Widget Company issues $500,000 of
Q29: Which of the following is TRUE of
Q30: The balance in the Bonds payable account
Q31: Discount on bonds payable is considered to
Q32: On January 2,2014,Mahoney Sales issued $10,000 in
Q33: Which of the following describes a serial