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are also called serial bonds b. a may be called in and redeemed by the issuing corporation prior to their scheduled maturity e are secured

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are also called serial bonds b. a may be called in and redeemed by the issuing corporation prior to their scheduled maturity e are secured by specific assets of the issuing corporaticn. d mature in one lamp sum at a single maturity able should be classifled as a long-term liability on a balance sheet unless the issue is irnine within one year of th balance sheet date and is to be paid by segregated assets aturing within one year of the balance sheet date and is to be retired by the use of current 66. Bonds Payable should be one year of the balance sheet date that are classified as long-term assets. n one year of the balance sheet date and is to be replaced by another bond cost on forty-six (46), ten-year, 6 percent, $1,000 bonds that are issued at 98 is d. maturing withi 67. The total interest a. $28,520 b. $26,680. C, $28,060. d. $27,600. wood Corporation issued $300,000 of 30 -year, 8 percent bonds at 106 on one of its semiannual interest date The straigh-line method of amortization is to be used. What is the total interest cost of the bonds? a $719,500 b. $702,000 c. $720,000 d. $738,000 Lassen Corporation issued ten year term bonds on January , 2010, with a face value ofS80000 the face interest rate is 8 percent and interest is payable semi-annually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 10 percent. The effective method of amortization is to be used. The entry on June 30, 2010, to record the payment of interest and amortization of discount is: 69. inc a. Bond Interest Expense 32,000 Cash 32,000 b. Bond Interest Expense 34,548 Unamortised Bond Discount Cash 2,548 32,000 c. Bond Interest Expense 34,548 Cash 34,548 d. Bond Interest Expense 32,000 Unamortised Bond Discount 32,000 The consistency convention requires that a. a company use the same independent auditors year after year. b. all companies operating in the same industry use the same accounting methods. c. the selection of a company's accounting policies be disclosed in its financial statements 70

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