Please explain how to calculate this to get an answer like the key above for number 118, 119, 121, 123, 127, 128, and 129

Chapter : LONG-TERM LIABILITIES

118. The adjusted trial balance for Lifesaver Corp. at the end of the current year, 2008, contained the following accounts. The total long-term liabilities reported on the balance sheet are

119. The 2008 financial statements of Shadow Co. contain the following selected data (in millions). The debt to total assets ratio is

121. $3 million, 10%, 10-year bonds are issued at face value. Interest will be paid semi- annually. When calculating the market price of the bond, the present value of

123. A corporation issued $300,000, 10%, 5-year bonds on January 1, 2008 for $324,333, which reflects an effective-interest rate of 8%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2008, is

127. Silcon Company issued $800,000 of 6%, 10-year bonds on one of its interest dates for $690,960 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. What amount of discount (to the nearest dollar) should be amortized for the first interest period?

128. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a

129. How much bond interest expense (to the nearest dollar) should be reported on the income statement for the end of the first year?

118 The adjusted trial balance for Lifesaver Corp. at the end of the current year, 2008, contained the following accounts. 5-year Bonds Payable 8% $1,000,000 Bond Interest Payable 50,000 Premium on Bonds Payable 100,000 Notes Payable (3 mo.) 40,000 Notes Payable (5 yr.) 165,000 Mortgage Payable ($15,000 due currently) 200,000 Salaries Payable 18,000 Taxes Payable (due 3/15 of 2009) 25,000 The total long-term liabilities reported on the balance sheet are a. $1,365,000 b. $1,350,000 c. $1.465,000. d. $1,450,000 119. The 2008 financial statements of Shadow Co. contain the following selected data in ( millions) Current Assets $ 75 Total Assets 120 Current Liabilities 40 Total Liabilities 85 Cash 8 The debt to total assets ratio is a. 70.8% b. 53.3%. c. 29.2% d. 1.41% *121. $3 million, 10%, 10-year bonds are issued at face value. Interest will be paid semi- annually. When calculating the market price of the bond, the present value of a. $300,000 received for 10 periods must be calculated. b. $3 million received in 10 periods must be calculated. c. $3 million received in 20 periods must be calculated. d. $150,000 received for 10 periods must be calculated. *123. A corporation issued $300,000, 10%, 5-year bonds on January 1, 2008 for $324,333, which reflects an effective-interest rate of 8%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2008, is a. $15,000 b. $12,000 c. $16,217 d. $12,973 Use the following information for questions 127-129. Silcon Company issued $800,000 of 6%, 10-year bonds on one of its interest dates for $690,960 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. *127. What amount of discount (to the nearest dollar) should be amortized for the first interest period? a. $22,542 b. $10,904 c. $14,554 d. $7,277 -128. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a a. debit to Bond Interest Expense for $48,000. b. credit to Cash for $55,277. C. credit to Discount on Bonds Payable for $7.277. d. debit to Bond Interest Expense for $64,000. 129. How much bond interest expense (to the nearest dollar) should be reported on the income statement for the end of the first year? a. $55,422 b. $55,277 C. $55,131 d. $48,000