4. MC.11.162 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. What is the journal entry needed when the bonds are issued at face value? a. debit Cash and Discount on Bonds Payable, credit Bonds Payable b. debit Cash, credit Bonds Payable e. debit Bonds Payable, credit Cash d. debit Cash, credit Premium on Bonds Payable and Bonds Payable 5. MC.11.163 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. The bonds are called at the end of year 3 for 104. What is the entry to record the redemption? (Assume the interest payment has been recorded separately.) Da. Bonds Payable 1,000,000 Gain on Redemption of Bonds 40,000 Cash 1,040,000 b. Bonds Payable Loss on Redemption of Bonds Cash 1,000,000 40,000 1,040,000 e. Bonds Payable 1,040,000 Cash 1,000,000 Loss on Redemption of Bonds 40,000 d. Bonds Payable 1,000,000 Cash 1,000,000

4. MC.11.162 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. What is the journal entry needed when the bonds are issued at face value? a. debit Cash and Discount on Bonds Payable, credit Bonds Payable b. debit Cash, credit Bonds Payable e. debit Bonds Payable, credit Cash d. debit Cash, credit Premium on Bonds Payable and Bonds Payable 5. MC.11.163 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. The bonds are called at the end of year 3 for 104. What is the entry to record the redemption? (Assume the interest payment has been recorded separately.) Da. Bonds Payable 1,000,000 Gain on Redemption of Bonds 40,000 Cash 1,040,000 b. Bonds Payable Loss on Redemption of Bonds Cash 1,000,000 40,000 1,040,000 e. Bonds Payable 1,040,000 Cash 1,000,000 Loss on Redemption of Bonds 40,000 d. Bonds Payable 1,000,000 Cash 1,000,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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