Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1. The bonds are issued on April 30, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each June 30 and December 31 The total amount of cash received by Austin Corporation upon issuance of the bonds on April 30, Year 2, is: Multiple Choice $6,000,000. $6,200,000. $6,150,000. $6,300,000.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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ACCT 102 - PRACTICE QUESTIONS (Please Do The Unanswered One if You Can't Do Both)

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Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1.
The bonds are issued on April 30, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each June 30 and December 31
The total amount of cash received by Austin Corporation upon issuance of the bonds on April 30, Year 2, is:
Multiple Choice
$6,000,000.
$6,200,000.
$6,150,000.
$6,300,000.
Transcribed Image Text:Saved Help Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1. The bonds are issued on April 30, Year 2, at 100 plus accrued interest. Interest on the bonds is payable semiannually each June 30 and December 31 The total amount of cash received by Austin Corporation upon issuance of the bonds on April 30, Year 2, is: Multiple Choice $6,000,000. $6,200,000. $6,150,000. $6,300,000.
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on April 1. Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April1 and
October 1.
On April 1, Year 1, the journal entry to record issuance of the bonds will include:
Multiple Choice
A credit to Interest Payable of $1,000,000.
A debit to Cash of $20,000,00.
A credit to Bonds Payable of $2,100,000.
A debit to Cash of $21,000,00.
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Transcribed Image Text:Help Save & Exit on April 1. Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each April1 and October 1. On April 1, Year 1, the journal entry to record issuance of the bonds will include: Multiple Choice A credit to Interest Payable of $1,000,000. A debit to Cash of $20,000,00. A credit to Bonds Payable of $2,100,000. A debit to Cash of $21,000,00. < Prev 7 of 10 Next > 12-29 P 3/1/202 41 F 6 e here to search
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