Name: Co 221. The interest rate spccified in the bond indenture is called the Class Date a. discount rate b. rate market rate d. effective rate 22. The present value ofS60000toberceived in one year, at 6%compounded annually, is (rounded to nearest b.$60396 60,000 x 0.9433%2 d. $3,396 a. should be reported on the balance shect as an asset because it has a debit balance -23. Te balance in Discount on Bonds Payable b. should be allocated to the remaining perlods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the effective interest rate method e. would be added to the related bonds payable to determine the carrying amount of the bonds d. would be suberacted from the related bonds payable on the halance sheet 24. A corporation issues for cash so,000,000 of 8% 30year bonds, interest payable seniannually. The amount received for the bonds will be a. present value of 60 semiannual interest payments of $360,000, plus present value of $9,000,000 to be repaid in 30 years b. present value of 30 anrual interest payments of $720,000 e' present value of 30rnual interest payments of S360,000, plus present value of S0000000 to be repaid in 30 years d. present value of $9,000,000 to be repaid in 30 years less present valuc of 60 semiannual interest payments of $360,000 25. The ournal entry a company records for the payment of interest, interest expense, and anoriation of bond discount is debit Interest Expense, credit Cash and Discount on Bonds Payable b. debit Interest Expense, credit Cash c. debit Interest Expense and Discount on Bonds Payable, credit Cash d. debit Interest Expense, credit Interest Payable and Discount on Bonds Payable