Vasquez issued a $400,000 face value, 8%, 20-year bond at 95. Which of the following is the correct journal entry to record the retirement of the bond at maturity?

A. Date Accounts and Explanation

Debit/ Credit

Bonds Payable /400,000 Cash 400,000

B. Date Accounts and Explanation Debit Credit

Cash 380,000 Bonds Payable/ 380,000

C. Date Accounts and Explanation

Debit/ Credit

Cash 400,000 /Bonds Payable 400,000

D. Date Accounts and Explanation

Debit/ Credit

bonds payable 380000/cash 380000

Paragon comma Inc.Paragon, Inc.'s

trial balance shows

$ 150 comma 000$150,000

face value of bonds with a discount balance of $2,500.

The bonds mature in 10 years. How will the bonds be presented on the balance sheet?

A.

Bonds payable

$ 150 comma 000$150,000

will be listed as a long-term liability. A

$ 2 comma 500$2,500

discount on bonds payable will be listed as a current liability.

B.

Bonds payable

$ 150 comma 000$150,000

will be listed as a long-term liability.

C.

Bonds payable

$ 147 comma 500$147,500

(net of

$ 2 comma 500$2,500

discount) will be listed as a long-term liability.

D.

Bonds payable

$ 150 comma 000$150,000

will be listed as a long-term liability. A

$ 2 comma 500$2,500

discount on bonds payable will be listed as a contra current liability.

The debt to equity ratio is calculated as:

assets/equity

current liabilities/ total equity

total liabilities/total equity

total liabilities/total assets

Corporation issued

$ 450 comma 000$450,000

of 7%,10-year bonds payable at a price of 95.

The market interest rate at the date of issuance was

8%,

and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is

A.

Date

Accounts and Explanation

Debit

Credit

	Interest Expense	17,100
	Discount on Bonds Payable		1,350
	Cash		15,750

B.

Date

Accounts and Explanation

Debit

Credit

	Interest Expense	19,350
	Discount on Bonds Payable		1,350
	Cash		18,000

C.

Date

Accounts and Explanation

Debit

Credit

Interest expense 17325

discount on bonds payable 1575

cash 15750

D.

Interest expense 19575

discount 1575

cash 18000