Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & E A company issued 5-year, 9.50% bonds with a par value of $105,000. The market rate when the bonds were issued was

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Help Save & E A company issued 5-year, 9.50% bonds with a par value of $105,000. The market rate when the bonds were issued was 9.00%. The company received $107.210 cash for the bonds. Using the effective interest method, the amount of recorded interest expense for the first semiannual interest period is Multiple Choice $9,975.00 $4,987.50 $9.585.98 $4,824.45 $2,493.75 Morgan Company issues 8%, 20-year bonds with a par value of $800,000 that pay interest semiannually. The amount paid to the bondholders for each semiannual interest payment is Multiple Choice $400,000 $64,000. $28,000 $56,000 $32,000. A company issued 9%, 15-year bonds with a par value of $650,000 that pay interest semiannually. The market rate on the date on was 9%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $600,000; credit Cash $600,000 No entry is needed, since no interest is peld until the bond is due. O Debit Bond Interest Expense $58,500, credit Cash $58,500. O Deble Bond Interest Payable 43,333; credit Cash $43,333. Debit Bond Interest Expense $29,250: credit Cash $29,250. Help Save & E Charger Company's most recent balance sheet reports total assets of $28,175,000, total liabilities of $15,925,000 and total equity of $12,250,000. The debt to equity ratio for the period is (rounded to two decimals): Multiple Choice 1.30 O 1779 0.43 0.77 0.57 Help Save & Exit Subm McVeigh Corp. owns 40% of Gondor Company's common stock. McVeigh received $44,800 in cash dividends from Gondor. The entry to record the cash dividend received from Gondor would include a Multiple Choice O Credit to Cash for $44,800 Debit to Dividend Revenue for $44.800. Credit to Equity Method Investments for $44,800. O Debit to Dividends for $112.000 Credit to Equity Method Investments for $112.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

SAP Certified Application Associate Financial Accounting With SAP ERP 6 0

Authors: Kiran K ,Augustine D

1st Edition

1544118724, 978-1544118727

More Books

Students also viewed these Accounting questions