Chapter 14 Acct M/C

Bonds with a face amount $1,000,000, are sold at 103. The entry to record the issuance is

The Torrez Corporation issues 1,000, 10-year bonds, 8%, $1,000 bonds dated Jaunuary 1, 2007, at 97. The journal entry to record the issuance will show a

The market interest rate related to a bond is also called the

The journal entry a company records for the issuance of bonds when the contract rate is greater than the market rate would be

Any unamortized premium should be reported on the balance sheet of the issuing corporation as

If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $100,000 will be

If $1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash received from the sale is

If bonds payable are not callable, the issuing corporation

When the corporation issuing the bonds has the right to repurchase the bonds prior to the maturity date for a specific price, the bonds are

A legal document that indicates the name of the issuer, the face value of the bond and such other data is called

The interest rate specified in the bond indenture is called the

The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is

A bond indenture is

The balance in Discount Bonds payable

The cash and securities compromising a sinking fund established to redeem bonds at maturity in 2015 should be classified on the balance sheet as

The bond indenture may provide that funds for the payment of bonds at maturity be accumulated over the life of the issue. The amounts set aside are kept separate from other assets in a special fund called a

The Royce Corporation issues 1,000, 10-year bonds, 8% $1,000 bonds dated January 1, 2007 at 97. The journal entry to record the issuance will show a

The balance in Premium on Bonds Payable

When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at

A corporation would not be successfully trading on equity if it gathered funds by

If $3,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is

Which of the following is not an advantage of issuing bonds instead of common stock?

If bonds are issued at a premium, the stated interest rate is

Sinking fund income is reported in the income statement as

Selling the bonds at a premium has the effect of

Debtors are interested in the time-interest-earned ratio because they want to

If the market rate of interest is greater than the contractual rate of interest, bonds will sell

An unsecured bond is the same as a

If bonds are issued at a discount, it means that the

One potential advantage of financing corporations through the use of bonds rather than common stock is

The present value of $40,000 to be received in one year, at 6% compound annually, is

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

When a corporation issues bonds, the price that buyers are willing to pay for the bonds does not depend on which of the following below

Sinking fund investments would be classified on the balance sheet as

When the maturities of a bond issue are spread over several dates, the bonds are called

If $1,000,000 of 8% bonds are issued at 103, the amount of cash received from the sale is a

If the market rate of interest is 10%, a $10,000, 12%, 10-year bond that pays interest semiannually would sell at an amount

The balance in Discount on Bonds payable that is applicable to bonds due in 2015 would be reported on the balance sheet in the section entitled

The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be

Bonds with a face amount $1,000,000 are sold at 97. The entry to record the issuance is

Sinking Fund Cash would be classified on the balance sheet as

Debenture bonds are