21) The carrying value of bonds at maturity always equals: A) the par value of the bond. B) the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. C) the amount of cash originally received in exchange for the bonds. D) the amount of discount or premium E) S0 22) Charger Company's most recent balance sheet reports total assets of $29,133,000, total liabilities of $16,683,000 and total equity of $12,450,000. The debt to equity ratio for the period is (rounded to two decimals): A) 0.75 E)0.57 B) 1.34 C)0.43 D) 1.75 23) Morgan Company issues 10 % , 20-year bonds with a par value of $790,000 that pay interest semiannually. The current market rate is 9 %. The amount paid to the bondholders for each semiannual interest payment is: A) S71,100. B) S39,500 E) $35,550. C) S395,000. D) $79,000. 24) On January 1, Parson Freight Company issues 9.0 % , 10- year bonds with a par value of $3,900,000. The bonds pay interest semiannually. The market rate of interest is 10.0% and the bond selling price was $3,656,987. The bond issuance should be recorded as: A) Debit Cash $3,656,987; credit Bonds Payable $3,656,987. B) Debit Cash $3,656,987; debit Interest Expense $243,013; credit Bonds Payable $3,900,000. C) Debit Cash $3,900,000; credit Bonds Payable $3,900,000. D) Debit Cash $3,656,987; debit Discount on Bonds Payable $243,013; credit Bonds Payable $3,900,000. E) Debit Cash $3,900,000; credit Bonds Payable $3,656,987; credit Discount on Bonds Payable $243,013 25) On January 1, a company issued and sold a S408,000, 9 % , 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment bo is: A) Debit Bond Interest Expense $36,720; credit Cash $36,720. B) Debit Bond Interest Expense $18,610; credit Cash $18,360; credit Discount on Bonds Payable $250 C) Debit Bond Interest Expense $18,110; debit Discount on Bonds Payable $250; credit Cash $18,360. D) Debit Bond Interest Expense $18,360; credit Cash $18,360. E) Debit Bond Interest Expense $18,360; debit Discount on Bonds Payable $250; credit Cash $18,610