which 13 On January 1, Year 4. Cet Corp. issued 9% bonds in the face amount of Stra mature on January 1, Year 14 The bonds were ssued for SO39000 to yield 10%, n a bond discount of $61,000 Celt uses the interest method of amortizing bond di Interest is payable annually on December 31. At December 31, Year 4, Celt's una bond discount should be a $51,000 b $51,610 c $52,000 d $57,100 14 On January 1, wear 2, Oak Co. issued 400 of its 8%, $1 000 bonds at S7 plus accrued interest The bonds are dated October 1, Year 1, and mature on October 1, Year 11. Interest is payable semiannually on April 1 and October 1. Accrued interest for the period October 1 Year 1, to January 1, Year 2, amounted to $8.000. On January 1, Year 2, what amount should Oak report as bonds payable, net of discount? a $380,300 b. $388,000 c$388,300 d. $392,000 15. On January 2, Vole Co. issued bonds with a face value of $480,000 at a discount to yield 10% The bonds pay interest semiannually On June 30, Vole paid bond interest of S 14,400. After Vole recorded amortization of the bond discount of $3,600, the bonds had a carrying amount of $363,600. What amount did Vole receive upon issuing the bonds? a. $360,000 b. $367,200 c. $476,400 d. $480,000 16 On January 1, Year 1, Fox Corp. issued 1 000 of its 10%. S1,000bords for S1040000. These bonds were to mature on January 1, Year 11, but were callable at 101 any time after December 31, Year 4. Interest was payable semiannually on July 1 and J anuary 1. On July 1, Year 6, Fox called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Fox's gain or loss in Year 6 on this early extinguishment of debt was a a. $30,000 gain. b. $22,000 gain. c $10,000 loss. d. $ 8,000 gain. 17. Verona Co. had $500,000 in current liabilities at the end of the current year. Verona issued s400,000 of common stock subsequent to the end of the year but before the financial statements were issued. The proceeds from the stock issue were intended to be used to pay the current debt. What amount should Verona report as a current liability on its balance sheet at the end of the current year? a. s 0 b. $100,000 c. $400,000 d $500,000