Carolina McKnight Fitness Gym has $ 600 comma 000 of 20-year bonds payable outstanding. These bonds had a discount of $ 72 comma 000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is _________________________________________________ Vasquez issued a $400,000 face value, 8%, 20-year bond at 95. Which of the following is the correct journal entry to record the retirement of the bond at maturity? Date Accounts and Explanation Debit Credit A. Cash 380,000 Bonds Payable 380,000 B. Bonds Payable 380,000 Cash 380,000 C. Bonds Payable 400,000 Cash 400,000 D. Cash 400,000 Bonds Payable 400,000 ____________________________________________________________________ Dynasystem 's trial balance shows $ 100 comma 000 face value of bonds with a discount balance of $ 1 comma 500 . The bonds mature in 10 years. How will the bonds be presented on the balance sheet? A. Bonds payable $ 100 comma 000 will be listed as a long-term liability. A $ 1 comma 500 discount on bonds payable will be listed as a contra current liability. B. Bonds payable $ 98 comma 500 (net of $ 1 comma 500 discount) will be listed as a long-term liability. C. Bonds payable $ 100 comma 000 will be listed as a long-term liability. D. Bonds payable $ 100 comma 000 will be listed as a long-term liability. A $ 1 comma 500 discount on bonds payable will be listed as a current liability. _______________________________________________________________ The debt to equity ratio is calculated as A. Total liabilities / Total equity. B. Current liabilities / Total equity. C. Total liabilities / Total assets. D. Total assets / Total equity. ____________________________________________________________________ Bryan Murphy wishes to have $ 90 comma 000 in twelve years. If he can earn annual interest of 2 %, Hicks Corporation issued $ 530 comma 000 of 11 %, 10-year bonds payable at a price of 96 . The market interest rate at the date of issuance was 12 %, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is Date Accounts and Explanation Debit Credit A. Interest Expense 34,132 Discount on Bonds Payable 2,332 Cash 31,800 B. Interest Expense 31,482 Discount on Bonds Payable 2,332 Cash 29,150 C. Interest Expense 30,528 Discount on Bonds Payable 1,378 Cash 29,150 D. Interest Expense 33,178