HI, I need help for Accounting Homework. Can you answer the MCQ

1. A company has $100,000 face value of bonds outstanding. The unamortized premium on these bonds is $2,700. If the company redeemed these bonds at 99%, the gain (loss) on the redemption is:

a. $ 1,000

b. $(1,000)

c. $(2,700)

d. $ 2,700

e. $ 3,700

2. On December 31, 20X1, Asta Corporation borrowed $65,000 by signing a 5-year, 14% installment note requiring annual payments (on December 31) of accrued interest plus fixed (equal) amounts of principal. What journal entry would record the first payment on December 31, 20X2?

a. Interest Expense . 1,820.00

Notes Payable 13,000.00

Cash .. 14,820.00

b. Notes Payable 14,820.00

Interest Payable .. 1,820.00

Cash . 13,000.00

c. Interest Expense . 9,100.00

Notes Payable .. 13,000.00

Cash . 22,100.00

d. Notes Payable .. 13,000.00

Cash . 13,000.00

e. Notes Payable .. 22,100.00

Cash . 22,100.00

3. On January 1, 20X1, X Corporation issued $100,000 face value of 20-year bonds, paying 9%

(contractual rate) interest annually on December 31. At the time of their issue, buyers demanded a 10% (market rate) return on their investment, and the cash proceeds of the issue to X Corporation amounted to $91,486. If the corporation uses the effective interest method, the amount of discount amortization to be recorded on December 31, 20X1 is:

a. $9,000

b. $8,514

c. $ 765

d. $ 486

e. $ 149

4. On January 1, 20X1, Mira Corporation issues $100,000 of 8-year bonds, paying 5% (contractual rate) interest semiannually on June 30 and December 31. The market rate of interest on the date of sale is 3%. The entry to record the sale of the bonds on the date of issue is:

a. Cash 102,690

Bonds Payable . 102,690

b. Cash 114,131

Bonds Payable . 114,131

c. Cash 100,000

Bonds Payable . 100,000

d. Cash 111,441

Bonds Payable . 111,441

e. Cash 113,901

Bonds Payable . 113,901

5. If a company sells a bond at a discount:

a. The market rate of interest was lower than the contractual rate of interest.

b. Interest expense for each period is less than it would have been if the bond had been sold at face value.

c. Interest expense for each period is more than it would have been if the bond had been sold at face value.

d. The bond amortized cost (carrying amount) of the bond payable would be more than its face value.

6. On January 1, 20X1, ABC Corporation issued $100,000 of 10-year bonds that pay 8% (contractual rate) interest annually on December 31. At the time of the issue, bond investors were demanding only a 7% (market rate) return on their investment. The cash proceeds of the bond issue to ABC Corporation were $107,024. Assuming the effective-interest method, the premium amortization to be recorded on December 31, 20X1 is:

a. $7,492

b. $ 702

c. $ 562

d. $ 508

e. $ 492

7. Once classified as a capital lease, the lessee records the leased asset and the related lease liability at the:

a. Present value of the minimum lease payments.

b. Lesser of the fair market value of the asset and the present value of the minimum

lease payments.

c. Fair market value of the asset.

d. Greater of the fair market value of the asset and the present value of the minimum

lease payments.

e. Book value of the asset.

Questions 8 and 9 refer to the following:

Acme Corporation issued $100,000 face value, 9% (contractual rate), 10-year bonds. Bond interest is paid semiannually. The market rate of interest on the issue date was 8%, and as a result the Acme Corporation received $106,796 in cash for the bonds.

8. On the first semiannual interest payment date, the holders of these bonds would be paid:

a. $4,000

b. $4,272

c. $4,500

d. $4,806

e. Some other amount

9. On the first semiannual interest payment date, the amount of premium that Acme Corporation would amortize by the effective-interest method is:

a. $228

b. $272

c. $306

d. $500

e. Some other amount