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13. Bond interest paid is a. higher when bonds sell at a discount. b. lower when bonds sell at a premium. c. the same whether
13. Bond interest paid is a. higher when bonds sell at a discount. b. lower when bonds sell at a premium. c. the same whether bonds sell at a discount or a premium. d. higher when bonds sell at a discount and lower when bonds sell at a premium. - 14. Bond Corporation issues 5,000, 10-year, 8%, $1,000 bonds dated January 1, 2020, at 103. Prepare the journal entry to record the issuance. 15. Rikki Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2020. The bonds had a face value of $200,000, pay interest annually on December 31, and have a call price of 101. Rikki uses the straight-line method of amortization. What is the amount of interest Rikki must pay the bondholders in 2020? 16. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income. c. provide information about the cash receipts and cash payments during a period. d. facilitate banking relationships
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