22.

Bond Corporation issues 6,000, 10-year, 8%, 1,000 bonds dated January 1, 2020, at 102. The journal entry to record the issuance will show a

A. credit to Bonds Payable for 6,020,000.

B. debit to Cash of 6,000,000.

C. credit to Bonds Payable for 6,120,000.

D. credit to Cash for 6,000,000.

Question 21

If bonds are originally sold at a discount using the straight-line amortization method

A. interest expense in the earlier years of the bonds life will be the same as interest to be paid.

B. interest expense in the earlier years of the bonds life will be less than the interest to be paid.

C. unamortized discount is subtracted from the face value of the bond to determine its carrying value.

D. unamortized discount is added to the face value of the bond to determine its carrying value.

Question 20

Monkee's Company has current assets of 45,000, current liabilities of 50,000, long-term assets of 90,000 and non-current liabilities of 40,000. Monkee's Company's working capital and its current ratio are:

A. (5,000) and .90:1.

B. 45,000 and .90:1.

C. 5,000 and 1.50:1.

D. 5,000 and .90:1.