In which section of the financial statement, would Paid-In Capital from Sale of Treasury Stock be reported? a. other income on income statement b. stockholders' equity on balance sheet C. intangible asset on balance sheet d. other expense on income statement If $1,000,000 of 8% bonds are issued at 103 1/2, the amount of cash received from the sale is a. $1.035.000 b. $1.000.000 c. $1,080,000 d. $965,000 Debenture bonds are a. bonds that have a single maturity date b. bonds secured by specific assets of the issuing corporation c. issued on the general credit of the corporation and do not pledge specific assets as collateral. d. issued only by the federal government When the maturities of a bond issue are spread over several dates, the bonds are called a. term bonds b. serial bonds c. bearer bonds d. debenture bonds If the market rate of interest is 8%, the price of 6% bonds paying interest semiannually with a face value of $250,000 will be a. Greater than or less than $250,000, depending on the maturity date of the bonds b. Less than $250,000 c. Equal to $250,000 d. Greater than $250,000 If the straight-line method of amortization of bond premium or discount is used, which of the following statements is true? a. Annual interest expense will decrease over the life of the bonds with the amortization of bond discount. b. Annual interest expense will increase over the life of the bonds with the amortization of bond premium. c. Annual interest expense will increase over the life of the bonds with the amortization of bond discount. d. Annual interest expense will remain the same over the life of the bonds with the amortization of bond discount. Any unamortized-premium should be reported on the balance sheet of the issuing corporation as a. as paid-in capital b. an addition to the face amount of the bonds in the liability section c. a direct deduction from retained earnings d. a direct deduction from the face amount of the bonds in the liability section An unsecured bond is the same as a a. term bond. b. debenture bond. c. zero coupon bond d. bond indenture
