,$1,000 bonds dated Bond Corporation issues 5,000, 10-year, 8% to record the issuance January 1, 2017, at 103. The journal entry will show a A) debit to Cash of $5,000,000 B) credit to Premiun on Bonds Payable for $150,000. C) credit to Bonds Payable for $5,030,000. D) credit to Cash for $5,150,000. E) None of the above 7 Premiun on Bonds Payable A) has a debit balance B) a contra account. C) is considered to be a reduction in the cost of borrowing. D) is deducted from bonds payable on the balance sheet. E) None of the above 8 If bonds payable were issued initially at a discount, the carrying value of the bonds at a balance sheet date will be caleulated A) deducting the anount of discount amortized between the issuance B) deducting the balance of unanortized bond discount from the c) adding the balance of unamortized bond discount to the face date and the balance sheet date from the face value. face value. value D) adding the amount of discount amortized between the issuance date and the balance sheet date to the face value. E) None of the above 9 When bonds have been issued at a premium, the periodic amortization of the premium will A) increase the carrying value of the bonds. B) have no effect on the carrying value of the bonds. C) decrease the carrying value of the bonds. D) cause the carrying value always to equal the face value of the bonds ) None of the above accunulated depreciation of $60, 000 in the Bagley rship. Both partners agree that the fair value of 10 Bagley invests owned Personally owned equipment, which originally cost $220,000 and has depre the equipment was $120,000. record Bagley's investment should be The entry made by the partnership to A) Equipment $ 220,000 Accumulated Depreciation-Equipment Bagley, Capital $ 60,000 s 160,000 B) Equipment s 160,000 Bagley, Capital 160, 000 C) Equipment Loss on Purchase of Equipment Accumulated Depreciation-Equipment $ 120, 000 $ 40,000 60,000 Bagley, Capital 220,000 D) Equipment $ 120,000 Bagley, Capital s 120,000 E) None of the above 11 Partners Gary and Elaine have agreed to share profits and 1osses in an 80:20 ratio respectively, after Gary is allowed a salary allowance of $30,000 and Elaine is allowed a salary allowance of $15,000. If the partnership had net income of $30,000 for 2017 Elaine's share of the income would be A) 15,000 B) 12,000 C)18, 000 D) 3,000 E) None of the above