On March 1, 2016, Mandau Services issued a 99% long-term notes payable for $ 23 comma 000$23,000. It is payable over a 44-year term in $ 5 comma 750$5,750 principal installments on March 1 of each year, beginning March 1, 2017. Each yearly installment will include both principal repayment of $ 5 comma 750$5,750 and interest payment for the preceding one-year period. What is the amount of total cash payment that Mandau will make on March 1, 2017? A. $ 23 comma 000$23,000 B. $ 5 comma 750$5,750 C. $ 7 comma 820$7,820 D. $ 6 comma 785$6,785 On December 1, 2016, Gardner Products borrowed $ 85 comma 000$85,000 on a 77%, 1616-year note with annual installment payments of $ 5 comma 313$5,313 plus interest due on December 1 of each subsequent year. Which of the following describes the first installment payment made on December 1, 2017? (Round your answer to the nearest whole number.) A. $ 5 comma 313$5,313 principal plus $ 5 comma 313$5,313 interest B. $ 5 comma 313$5,313 principal plus $ 372$372 interest C. $ 5 comma 950$5,950 interest only D. $ 5 comma 313$5,313 principal plus $ 5 comma 950$5,950 interest Which of the following is the amount the borrower must pay back to the bondholders at maturity? A. principal amount B. stated interest value C. present value D. market value Which of the following describes a secured bond? A. a bond that matures at one specified time B. a bond that is not backed by specific assets C. a bond that matures in installments at regular intervals D. a bond that is backed by issuer's specific assets Which of the following statements is true of a bond that is issued at a premium? A. The stated interest rate is lower than the prevailing market interest rate. B. At maturity, the bond will repay an amount that is greater than the face value. C. The bond will be issued at an amount above face value. D. The bond will be issued at par. If bonds with a face value of $ 202 comma 000$202,000 are issued at 9494, the amount of cash proceeds is ________. (Round your answer to the nearest dollar.) A. $ 201 comma 906$201,906 B. $ 189 comma 880$189,880 C. $ 177 comma 760$177,760 D. $ 202 comma 000$202,000 The interest rate on which cash payments to bondholders are based is the ________. A. market rate B. amortization rate C. discount rate D. stated rate Which of the following statements is true if a bond is issued at an amount less than its face value? A. The bond is not secured by specific assets of the issuer. B. The bond's stated rate is lower than the prevailing market rate at the time of sale. C. The bond's stated rate is higher than the prevailing market rate at the time of sale. D. The bond's stated rate is the same as the prevailing market rate at the time of sale. On June 1, 2017, Smith & Beecham Services issued $ 30 comma 000$30,000 of 77% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2017, how much interest is paid to bondholders? (Round your answer to the nearest dollar.) A. $ 700$700 B. $ 2 comma 100$2,100 C. $ 1 comma 050$1,050 D. $ 525$525 The balance in the Bonds Payable account is a credit of $ 70 comma 000$70,000. The balance in the Discount on Bonds Payable account is a debit of $ 3 comma 950$3,950. What is the bond's carrying amount? A. $ 73 comma 950$73,950 B. $ 3 comma 950$3,950 C. $ 70 comma 000$70,000 D. $ 66 comma 050$66,050 On January 1, 2017, Carter Sales issued $ 24 comma 000$24,000 in bonds for $ 17 comma 700$17,700. These are six-year bonds with a stated interest rate of 1515%, and pay semiannual interest. Carter Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June 30, 2017? (Round your answer to the nearest dollar.) A. $ 13 comma 200$13,200 B. $ 2 comma 325$2,325 C. $ 525$525 D. $ 1 comma 800$1,800 The Frozen Lake Company issues $ 518 comma 000$518,000 of 1212%, 10-year bonds at 105105 on March 31, 2017. The bond pays interest on March 31 and September 30. Assume that the company uses the straight-line method for amortization. The journal entry to record the first interest payment on September 30, 2017 includes a ________. (Round your intermediate answers to the nearest dollar.) A. debit to Cash for $ 31 comma 080$31,080 B. debit to Interest Expense for $ 29 comma 785$29,785 C. credit to Premium on Bonds Payable for $ 1 comma 295$1,295 D. debit to Interest Expense for $ 32 comma 375$32,375 On July 1, 2017, Miniature Company has bonds with balances as shown below. Bonds Payable 66 comma 00066,000 Discount on Bonds Payable 4 comma 2004,200 If the company retires the bonds for $ 69 comma 150$69,150, what will be the effect on the income statement? A. sales revenue of $ 61 comma 800$61,800 B. gain on retirement of $ 7 comma 350$7,350 C. no effect on net income D. loss on retirement of $ 7 comma 350$7,350 Refer to the following list of liability balances at December 31, 2017. Accounts Payable $ 21 comma 000$21,000 Employee Health Insurance Payable 750750 Employee Income Tax Payable 800800 Estimated Warranty Payable 1 comma 3001,300 LongminusTerm Notes Payable (Due 2021) 43 comma 00043,000 FICAlong dashOASDI Taxes Payable 760760 Sales Tax Payable 1 comma 0701,070 Mortgage Payable (Due 2022) 14 comma 00014,000 Bonds Payable (Due 2023) 63 comma 00063,000 Current Portion of LongminusTerm Notes Payable 5 comma 5005,500 What is the total amount of long-term liabilities? A. $ 106 comma 000$106,000 B. $ 43 comma 000$43,000 C. $ 120 comma 000$120,000 D. $ 57 comma 000$57,000 Alexander Corp. has the following balances as of December 31, 2017: Total Assets $110,000 Total Liabilities 64,000 Total Equity 46,000 Calculate the debt to equity ratio. (Round your answer to two decimal points.) A. 1.39 B. 0.67 C. 0.72 D. 2.39