Greatco signed a 7-year note payable on January 1, 2016,of $525,000. The note requires annual principal payments each December 31 of$75,000 plus interest at 12%.The entry to record the annual payment on December 31,2020, includes

A.

a credit to Notes Payable for

$ 75 comma 000$75,000.

B.

a debit to Interest Expense for

$ 27 comma 000$27,000.

C.

a debit to Interest Expense for

$ 63 comma 000$63,000.

D.

a credit to Cash of

$ 138 comma 000$138,000.

A.

a credit to Notes Payable for

$ 75 comma 000$75,000.

B.

a debit to Interest Expense for

$ 27 comma 000$27,000.

C.

a debit to Interest Expense for

$ 63 comma 000$63,000.

D.

a credit to Cash of

$ 138 comma 000$138,000.

Daniels's bonds payable carry a stated interest rate of 5%, and the market rate of interest is 7%. The price of the Daniels's bonds will be at

A.a premium.

B.par value.

C.face value.

D. a discount.

A bond that matures in installments at regular intervals is a

A.serial bond.

B.terminal bond.

C.term bond.

D.periodic bond

.

Antiques issued its 6%,10-year bonds payable at a price of $634,060(face value is $700,000).

The company uses the straight-line amortization method for the bond discount or

premium. Interest expense for each year is

(Round your answer to the nearest whole dollar.)

A.

$ 38 comma 044$38,044.

B.

$ 42 comma 000$42,000.

C.

$ 35 comma 406$35,406.

D.

$ 48 comma 594$48,594.

Thomas MarleyThomas Marley Fitness Gym has $900,000 of 20-year bonds payable outstanding. These bonds had a discount of $72,000 atissuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is

A.

$ 936 comma 000$936,000.

B.

$ 828 comma 000$828,000.

C.

$ 864 comma 000$864,000.

D.

$ 900 comma 000$900,000.