10 fast questions
1.A $600,000 bond was retired at 98 when the carrying value of the bond was $592,000. The entry to record the retirement would include a (Points : 2) gain on bond redemption of $8,000.
loss on bond redemption of $8,000.
loss on bond redemption of $4,000.
gain on bond redemption of $4,000.
higher when bonds sell at a discount. lower when bonds sell at a premium. the same whether bonds sell at a discount or a premium. higher when bonds sell at a discount and lower when bonds sell at a premium. |
$240,450. $204,050. $200,450. $204,500. |
$15,080 $16,000 $17,150 $14,850 |
$200,000 $190,800 $197,700 $189,650 |
gain on bond redemption of $18,000. loss on bond redemption of $12,000. loss on bond redemption of $18,000. gain on bond redemption of $4,000. |
Bonds Payable for $150,000. Bonds Payable for $135,000. Discount on Bonds Payable for $15,000. Bonds Payable equal to the market price of the bonds on the date of conversion. |
issue the bonds. keep a record of each bondholder. hold conditional title to pledged property. maintain custody of unsold bonds. |
credit of $10,040 to Loss on Bond Redemption. debit of $10,040 to Loss on Bond Redemption. credit of $10,040 to Premium on Bonds Payable. debit of $40,000 to Premium on Bonds Payable. |
| Question 10. 10.Hernandez Corporation issues 3,000, 10-year, 8%, $1,000 bonds dated January 1, 2012, at 98. The journal entry to record the issuance will show a (Points : 2) |
debit to Cash of $3,000,000.
credit to Discount on Bonds Payable for $60,000.
credit to Bonds Payable for $3,040,000.
debit to Cash for $2,960,000.
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