Question
Please answer the questions below as soon as poosible please please please : 1)Adidas issued 10-year, 9% bonds with a par value of $150,000. Interest
Please answer the questions below as soon as poosible please please please :
1)Adidas issued 10-year, 9% bonds with a par value of $150,000. Interest is paid semiannually. The market rate on the issue date was 8%. Adidas received $160,195 in cash proceeds. Which of the following statements is True? |
Adidas must pay $160,195 at maturity and no interest payments.
Adidas must pay $160,195 at maturity plus 20 interest payments of $6,750 each.
Adidas must pay $150,000 at maturity plus 20 interest payments of $6,000 each.
Adidas must pay $150,000 at maturity and no interest payments.
Adidas must pay $150,000 at maturity plus 20 interest payments of $6,750 each.
2)A company issued 5-year, 7% bonds with a par value of $200,000. The market rate when the bonds were issued was 6.5%. The company received $202,000 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: |
$13,800.0.
$14,000.
$7,000.
$14,000.
$6,800.
3)On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the issuance of the bond is: |
Debit Cash $220,000; debit Premium on Bonds Payable $8,930; credit Bonds Payable $228,930.
Debit Cash $228,930; credit Discount on Bonds Payable $8,930; credit Bonds Payable $220,000.
Debit Cash $228,930; credit Bonds Payable $228,930.
Debit Bonds Payable $220,000; debit Interest Expense $8,930; credit Cash $228,930.
Debit Cash $228,930; credit Premium on Bonds Payable $8,930; credit Bonds Payable $220,000.)
4)On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 6% and the bonds are sold for $364,930. The journal entry to record the first interest payment using straight-line amortization is: |
Debit Interest Expense $13,743.00; credit Discount on Bonds Payable $1,493.00; credit Cash $12,250.00.
Debit Interest Expense $10,757.00; debit Premium on Bonds Payable $1,493.00; credit Cash $12,250.00.
Debit Interest Payable $12,250.00; credit Cash $12,250.00.
Debit Interest Expense $13,743.00; credit Premium on Bonds Payable $1,493.00; credit Cash $12,250.00.
Debit Interest Expense $10,757.00; debit Discount on Bonds Payable $1,493.00; credit Cash $12,250.00.
5) On January 1, a company issues bonds dated January 1 with a par value of $430,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $412,577. The journal entry to record the issuance of the bond is: |
Debit Cash $412,577; debit Premium on Bonds Payable $17,423; credit Bonds Payable $430,000.
Debit Cash $412,577; credit Bonds Payable $412,577.
Debit Cash $430,000; debit Discount on Bonds Payable $17,423; credit Bonds Payable $447,423.
Debit Bonds Payable $430,000; debit Interest Expense $17,423; credit Cash $447,423.
Debit Cash $412,577; debit Discount on Bonds Payable $17,423; credit Bonds Payable $430,000.
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