1. The journal entry to record the issuance of bonds will include:
2. A credit to cash
3. A debit to bonds payable
4. A credit to bonds payable
5. Both "A credit to cash" and "A debit to bonds payable" are correct.

2.Which of the following is not used to calculate the amount of interest to be paid on bonds?

1. Stated interest rate
2. Face value
3. Maturity date
4. Market value

3.On January 1, Zee Products sells bonds at a face value of $250,000. Interest rate is 6%, payable semi-annually. What is the amount of interest expense on July 1?

1. $15,000
2. $7,500
3. $3,750
4. $0

4.The journal entry to record the payment of interest will include:

1. A debit to cash
2. A debit to interest expense
3. A credit to interest expense
4. Both "A debit to cash" and "A credit to interest expense" are correct.

5.If Interest on bonds of $4,500 is paid semi-annually for 10 years, what is the total cost of borrowing $150,000?

1. $90,000
2. $45,000
3. $105,000
4. $60,000

1.The market rate of a bond is higher than the stated rate when bonds are sold at:

1. Face value
2. A discount
3. A premium
4. None of these choices are correct.

2.When bonds are issued at a discount, the carrying value of the bond is:

1. The face value less discount on bonds payable
2. The face value plus discount on bonds payable
3. The face value
4. None of these choices are correct.

3.If bonds with a face value of $50,000 are issued at 95, what amount would they be issued for?

1. $52,500
2. $50,095
3. $47,500
4. $95

4.When bonds are issued at a discount, how is the discount amount treated by the issuing company?

1. It is amortized over the life of the bond.
2. It is recorded as a loss on issuance.
3. The recording of the discount decreases interest expense.
4. It is collected at the time of maturity.

5.If the interest paid is $5,000 and discount amortized is $500, the interest expense will be:

1. $5,500
2. $4,500
3. $5,000
4. $500