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Please show work. I T-Mobile Wi-Fi 9:15 PM 57% CHAPTER 12 Crystal, Inc.'s trial balance shows $800,000 face value of bonds with a discount balance
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I T-Mobile Wi-Fi 9:15 PM 57% CHAPTER 12 Crystal, Inc.'s trial balance shows $800,000 face value of bonds with a discount balance of S12.000. The bonds mature in 20 ycars. How A. Bonds payable S800,00 will be listed as a long-term liahility. A S12,000 discount on bonds payable the bonds be presented on the balance sheet? will he listed as a current liahility B. Bonds payableS800,wl he listed as a longterm lahility. A 12,(X discount on honds payahle will be listed as a conta-curent liability C. Bonds payable S800,000ll be listed as a long-term lability D. Bonds payable $788,0N0 net of $12,00 discount) will be listed as a long-term liahility 2. Dawson Company issued $400. IXX> of 8% serial honds at face value on December 31, 2D18. Half of the honds mature Jamuary 1, 21021, while the other half of the bonds mature January 1, 2029. On Decemher 31, 2020, the balance sheet will show which of the following A. Bonds payable of S400,000 will be listed as a long-term liability B. Bonds payable of S400,000 will be listed as a current liability C Bonds payable of S200,0l belisted as a long-term aility Bonds payahble of S200,0DD will he listed us a current liability Bonds payable of S408,000 will be listed as a long-term liability D. 3. Which of the following is the corect journal entry to record the issuanceof a $250,000 fuce value bond at 952 Accounts Debit Credit A. Bonds Payable 237,500 237,500 Cash B. Cash 250,000 12,500 Discount on Bonds Payable Bonds Payable 237.500 C. Cash 237,500 12,500 Discount on Bonds Payable Bonds Payable 250,000 D. Bonds Payable 237,500 Cash 237.S00 4. Cat Corporation's bonds payable cama stated interest rate of 8%, and the market rate of interest is 5%. The price of the Cat's bondsill be at A. a premium. B. a di scount C maturity value D. par value. 5, Jessica's Antiques issued its 4%, 20-year bonds payable at a price of $288,500( face value is $300,000) The company uses the straight-line amortization method for the bonds. Interest expense for each year is A. $12,000. B $11,540. C 15,00, D, S12.575 6. A five-year, $100,000, 4% note payable was issued on December 31, 20X8. The note requires principal payments of S20,000 plus interest due each year beginning December 31, 20X9. The entry to record the annual payment at the end of year two on December 31, 20X0, includes A. a debit to Interest Expense for S800. B. a debit to Interest Expense for S3,200. C. a credit to Cash for $24,000 D. a credit to Notes Payable for S20,000 . Jordan Inc. has total assets of S500,000. Curren liabilities are $10,000, and long-te liabilities are S90,000. What is the deb to equity ratio? A. 0.180 237,500 57% T-Mobile Wi -Fath 237,500 4. Cat Corporation's bonds payable cama stated interest rate of 8%, and the market rate of interest is 5%. e of the Cat's bonds will be at rem1 iscount turity value 2 of 2 D. par valuc 5, Jessica's Antiques issued its 4%, 20-year bonds payable at a price of $288,500( face value is $300,000). The company uses the straight-line amortization method for the bonds. Interest expense for each year is A. $12,000. 11,540. C. $15,0010, D. $12,575 6. A five-year, $100,000, 4% note payable was issued on December 31, 20X8. The note requires principal payments of S20,000 plus interest due cach year beginning December 31, 20X9. The entry to record the annual payment at the end of year two on December 31, 20X0, includes A. a debit to Interest Expense for S800. B. a debit to Interest Expense for S3,200. C. a credit to Cash for $24,000 D. a credit to Notes Payable for S20,000 . Jordan Inc. has total assets of S500,000. Current liabilities are $10,000, and long-te liabilities are S90,000. What is the debt to equity ratio? A. 0.180 B. 0.200 C. 0,225 D. 0.250 8. A $400,000 bond priced at 102 can be bought or issued for A. $102,000 B. $392,000 C. $402,000 D, $408,000 9. Devon signed a 20-year note payable on January 1, 2018. The note requires annual principal payments plus interest. The entry to record the annual payment on December 31, 2018 includes a A. credit to Interest Expense. B. debit to Interest Expense C. credit to Long-term Notes Payable D. debit to Cash. 10. Jana's Fitness Drinks has 5850,000 of 20-year bonds payable outstanding. These bonds had a disoount of S42,000 at issuance, which was 8 years ago. The company uses the straight-line amortization method. The carrying amount of these bonds payable today is A. $808,000 B. $824.800 C. $833,200 D. $892,000Step by Step Solution
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