Question 1 1 points Save An Macias Company issued S400,000 of 10%, 8-year bonds on March 1, 2018, for $450,800 to yield 7%. Interest is payable on June 30 and December 31. The amount of interest expense to record if financial statements are issued on May 31, 2018 is CA $7.000 BS11.270 CS10.000 D. 57.889 Save Question 2 1 points On April 1. 2018, Nolte Co, issued 51.000,000 of 10% bonds at 98 plus accrued interest, which provides the bondholders with a 119 yield. The bonds are dated January 1, 2018 and mature on January 1, 2025. Totorest is payable semiannually on January I and July 1. What amount did Nolto Co, receive from the bond issuance? DA S1.015.000 8. S1.005.000 CS1.007.500 D. $980,000 Remaining Time: 19 minutes, 12 seconds. Question Completion Status: 1 2 3 4 5 6 Save Moving to another question will save this response. Question 3 of 6 Question 3 1 points At December 31, 2018. the following balances were reported on the statement of financial position of Hamilton Corporation: Bonds Payable $1,472,000 The bonds have a face amount of S1,500,000. If the bonds are retired on January 1, 2019 at 102, what amount of gain or loss will Hamilton report on the redemption? A. S15,000 B.558,000 DC543.000 D. 561,759 Moving to another question will save this response. Question 3 of 6 RI E 083 do ENG 2003 Question 4 1 points On December 31, 2019, Spear Co. is in financial difficulty and cannot pay a note due that day. It is a $360,000 note with $30,000 accrued interest payable to Nilsen Bank. Nilsen Bank agrees to accept from Spear a building that has a fair value of 5330,000, an original cost of $530,000, and accumulated depreciation of S130,000, Spear Co. should recognize a gain or loss on the disposal of the building of DA S200,000 loss OB. $190,000 gain. C. $60,000 gain D. 570.000 loss. Question 5 0.5 points Nilsen Company issued bonds with a face amount of $200.000 and a maturity ten years from date of issue. If the bonds were issued at a discount, this indicates that C.A. the effective yield or market rate of interest exceeded the stated (nominal) rate B. the nominal rate of interest exceeded the market rate, C. the market and nominal rates are similar Dino necessary relationship exists between the two rates. Question 6 0.5 points In a debt extinguishment in which the debt is settled by a transfer of assets with a fair value less than the carrying amount of the debt, the debtor would recognize A no gain or loss on the settlement Bagain on the settlement Ca loss on the settlement. D. None of these answer choices are correct
