Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Chapter 13, Problem 3MC
The principal of a bond is ________.
A. the person who sold the bond for the company
B. the person who bought the bond
C. the interest rate printed on the front of the bond
D. the face amount of the bond that will be paid back at maturity
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Chapter 13 Solutions
Principles of Accounting Volume 1
Ch. 13 - An amortization table ________. A. breaks each...Ch. 13 - A debenture is ________. A. the interest paid on a...Ch. 13 - The principal of a bond is ________. A. the person...Ch. 13 - A convertible bond can be converted into ________....Ch. 13 - On January 1, a company issued a 5-year $100,000...Ch. 13 - On July 1, a company sells 8-year $250,000 bonds...Ch. 13 - On January 1 a company issues a $75,000 bond that...Ch. 13 - On October 1 a company sells a 3-year, $2,500,000...Ch. 13 - On April 1 a company sells a 5-year, $60,000 bond...Ch. 13 - The effective-interest method of bond amortization...
Ch. 13 - When a bond sells at a discount, the carrying...Ch. 13 - The International Financial Reporting Standards...Ch. 13 - The cash interest payment a corporation makes to...Ch. 13 - Whirlie Inc. issued $300,000 face value, 10% paid...Ch. 13 - Naval Inc. issued $200,000 face value bonds at a...Ch. 13 - Keys Inc. issued 100 bonds with a face value of...Ch. 13 - Huang Inc. issued 100 bonds with a face value of...Ch. 13 - OShea Inc. issued bonds at a face value of...Ch. 13 - Gingko Inc. issued bonds with a face value of...Ch. 13 - The difference between equity financing and debt...Ch. 13 - What is the difference between callable and...Ch. 13 - What is the difference between serial bonds and...Ch. 13 - What is a junk bond?Ch. 13 - How are savings bonds different from a corporate...Ch. 13 - What do you have to do to the interest rate and...Ch. 13 - An amortization table/schedule is created to...Ch. 13 - In the amortization table, how is the amortization...Ch. 13 - Does issuing a bond at a discount increase or...Ch. 13 - What kind of account is the Discount on Bonds...Ch. 13 - Why is the effective-interest method of...Ch. 13 - If there is neither a premium nor discount...Ch. 13 - When do you use the Bond Discount Account?Ch. 13 - A company issued bonds with a $100,000 face value,...Ch. 13 - A company issued $100,000, 5-year bonds, receiving...Ch. 13 - Does interest expense increase or decrease when a...Ch. 13 - Halep Inc. borrowed $30,000 from Davis Bank and...Ch. 13 - Beluga Inc. issued 10-year bonds with a face value...Ch. 13 - Krystian Inc. issued 10-year bonds with a face...Ch. 13 - On January 1, 2018, Wawatosa Inc. issued 5-year...Ch. 13 - Diana Inc. issued $100,000 of its 9%, 5-year bonds...Ch. 13 - Oak Branch Inc. issued $700,000 of 5%, 10-year...Ch. 13 - On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds...Ch. 13 - Medhurst Corporation issued $90,000 in bonds for...Ch. 13 - On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds...Ch. 13 - Pinetop Corporation issued $150,000 10-year bonds...Ch. 13 - Medhurst Corporation issued $90,000 in bonds for...Ch. 13 - Sharapovich Inc. borrowed $50,000 from Kerber Bank...Ch. 13 - Waylan Sisters Inc. issued 3-year bonds with a par...Ch. 13 - Smashing Cantaloupes Inc. issued 5-year bonds with...Ch. 13 - Chung Inc. issued $50,000 of 3-year bonds on...Ch. 13 - Haiku Inc. issued $600,000 of 10-year bonds with a...Ch. 13 - Waldron Inc. issued $400,000 bonds with a stated...Ch. 13 - Willoughby Inc. issued 100 bonds with a face value...Ch. 13 - Allante Corporate issued 50 bonds with a face...Ch. 13 - Roo Incorporated issued 50 bonds with a face value...Ch. 13 - Piedmont Corporation issued $200,000 of 10-year...Ch. 13 - Lunar Corporation issued $80,000 in bonds for...Ch. 13 - On January 1, 2018, King Inc. borrowed $150,000...Ch. 13 - On July 1, Somerset Inc. issued $200,000 of 10%,...Ch. 13 - Eli Inc. issued $100,000 of 8% annual, 5-year...Ch. 13 - Evie Inc. issued 50 bonds with a $1,000 face...Ch. 13 - Volunteer Inc. issued bonds with a $500,000 face...Ch. 13 - Aggies Inc. issued bonds with a $500,000 face...Ch. 13 - Sub-Cinema Inc. borrowed $10,000 on Jan. 1 and...Ch. 13 - Charleston Inc. issued $200,000 bonds with a...Ch. 13 - Starmount Inc. sold bonds with a $50,000 face...Ch. 13 - Irving Inc. sold bonds with a $50,000, 10%...Ch. 13 - Dixon Inc. issued bonds with a $500,000 face...Ch. 13 - Edward Inc. issued bonds with a $500,000 face...Ch. 13 - Below is select information from two, independent...Ch. 13 - Assume you are a newly-hired accountant for a...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- A debenture is ________. A. the interest paid on a bond B. a type of bond that can be sold back to the issuing company whenever the bondholder wishes C. a bond with only the companys word that they will pay it back D. a bond with assets such as land to back their word that they will pay it backarrow_forwardWhat kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds Payable?arrow_forwardWhen accounting for a bond whose interest is included in the face amount, the account Discount in Bonds Payable eventually is converted into Interest Payable Interest Receivable Interest Expense Interest Incomearrow_forward
- Serial bonds are a. Bonds backed by collateral.b. Bonds that mature in installments.c. Bonds the issuer can repurchase at a fixed price.d. Bonds issued below the face amount.arrow_forwardThe date on which the principal amount is repaid to the bond holder is known as the?arrow_forwardWhich of the following does not impact the calculation ofthe cash interest payments to be made to bondholders?a. Face value of the bond.b. Stated interest rate.c. Market interest rate.d. The length of time between payments.arrow_forward
- When determining the amount of interest to be paid on a bond, which of the following information is not necessary? a. The length of the interest period, annually or semiannually b. The face rate of interest on the bonds c. The face amount of the bonds d. The selling price of the bondsarrow_forwardWhen the initial present value of a bond payable is higher than its face amount, an entity would usually ________ the _______________________ account when recording amortization of interests. debit; Premium on Note Receivable credit; Premium on Note Receivable debit; Interest Expense credit; Interest Expensearrow_forwardWhich of the following would describe a callable bond? Oa. Borrower has the right to issue more bonds prior to due date of existing bonds. Ob. Borrower has the right to call off the interest payments on the bonds. Oc. Investor has the right to call off the interest payments on the bonds. C. d. Borrower has the right to pay off the bonds prior to due date.arrow_forward
- Bonds which require the face value (principal) amount to be paid back in installments over the life of the bond are called: Select one: a. serial bonds. b. convertible bonds. c. callable bonds. d. unsecured bonds. e. term bonds. f. secured bonds.arrow_forward1. To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the contract rate b. The carrying value value of the bond to the proceeds received from the sale of the bond c. The income for the period d. The proceeds to the unamortized premium or discount 2. If the proceeds are greater than the carrying value, you will have a a. gain with a credit balance b. gain with a debit balance c. loss with a debit balance d. loss with a credit balancearrow_forwardIf bonds are redeemed on maturity date, any premium or discount a. Is carried forward and written off in the same manner as that used prior to the maturity date. b. Should be used to calculate the gain or loss resulting from the maturity of the bonds. c. Should be written off directly to a bond retirement account as the bond will be redeemed. d. Will be fully amortized as its amortization period is designed to coincide with the life of the bond issue.arrow_forward
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