1 If bonds are issued at 101 25, this means that C a a $1,000 bond sold for $101 25 b the bonds sold at a discount c a $1,000 bond sold for $1,012 50 d the bond rate of interest is 10 13 of the market rate of interest 2 The Discount on Bonds Payable account is shown on the balance sheet as D a an asset b an expense c a long term liability d a contra long term liability 3 When will bonds sell at a discount B a The credit standing of the issuing company is not as good as other companies in a similar line of business b The face rate of interest is less than the market rate of interest at the time of issue c The face rate of interest is more than the market rate of interest at the time of issue d The issuing company will be able to retire the bonds at less than face at maturity Can you help me to confirm If I have the right answer

Question

1  If bonds are issued at 101 25, this means that C a  a $1,000 bond sold for $101 25  b  the bonds sold at a discount  c  a $1,000 bond sold for $1,012 50  d  the bond rate of interest is 10 13  of the market rate of interest  2  The Discount on Bonds Payable account is shown on the balance sheet as D a  an asset  b  an expense  c  a long term liability  d  a contra long term liability  3  When will bonds sell at a discount  B a  The credit standing of the issuing company is not as good as other companies in a similar line of business  b  The face rate of interest is less than the market rate of interest at the time of issue  c  The face rate of interest is more than the market rate of interest at the time of issue  d  The issuing company will be able to retire the bonds at less than face at maturity  Can you help me to confirm If I have the right answer

Accepted Answer

The Answer is in the image, click to view ...

	a.	a $1,000 bond sold for $101.25.
	b.	the bonds sold at a discount.
	c.	a $1,000 bond sold for $1,012.50.
	d.	the bond rate of interest is 10.13% of the market rate of interest.

	a.	The credit standing of the issuing company is not as good as other companies in a similar line of business.
	b.	The face rate of interest is less than the market rate of interest at the time of issue.
	c.	The face rate of interest is more than the market rate of interest at the time of issue.
	d.	The issuing company will be able to retire the bonds at less than face at maturity.

Question

1. If bonds are issued at 101.25, this means that C a. a $1,000 bond sold for $101.25. b. the bonds sold at a discount.

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

The Human Resource Function Audit

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question