1, Scottie Adams Bird Supplies issued 11% bonds, dated January 1, with a face amount of $230,000 on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 10%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds at January 1, 2021? Some relevant and irrelevant present value factors: * PV of annuity due of $1: n = 20; i = 5% is 13.08532 * PV of ordinary annuity of $1: n = 20; i = 5% is 12.46221 **PV of $1: n = 20; i = 5% is 0.37689 Multiple Choice $244,332. $261,702. $401,979. $183,985.

2, On January 31, 2021, B Corp. issued $800,000 face value, 11% bonds for $800,000 cash. The bonds are dated December 31, 2020, and mature on December 31, 2030. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2021, balance sheet?

Multiple Choice

• $22,000.

• $44,000.

• $66,000.

• $58,667.

3, A bond issue with a face amount of $1,300,000 bears interest at the rate of 9%. The current market rate of interest is 10%. These bonds will sell at a price that is:

Multiple Choice

• Equal to $1,300,000.

• More than $1,300,000.

• Less than $1,300,000.

• The answer cannot be determined from the information provided.

4, On January 1, 2021, Solo Inc. issued 1,900 of its 6%, $1,000 bonds at 96. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $50,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for 2021 is:

Multiple Choice

• $114,000.

• $121,600.

• $126,600.

• $134,200.

5, Haste Enterprises issues 16-year, $1,000,000 bonds that pay semiannual interest of $45,000. If the effective annual rate of interest is 11%, what is the issue price of the bonds? Some relevant and irrelevant present value factors: * PV of ordinary annuity of $1: n = 16; i = 11% is 7.37916 **PV of $1: n = 16; i = 11% is 0.18829 * PV of ordinary annuity of $1: n = 32; i = 5.5% is 14.90420 **PV of $1: n = 32; i = 5.5% is 0.18027

Multiple Choice

• $850,959.

• $915,504.

• $1,000,000.

• $1,670,689.