18. Gains or losses from refunding are recognized a. over the remaining life of the old issue b. in the year of refunding c. over the life of the new bond issue d. as a prior period adjustment
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18. Gains or losses from refunding are recognized
a. over the remaining life of the old issue
b. in the year of refunding
c. over the life of the new bond issue
d. as a prior period adjustment
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- The discount on bonds payable is charged to interest expense a.Using the effective interest method b.Only in the year the bond matures c.Equally over the life of the bond d.only in the year the bond is issuedThe discount on a bond payable becomesa. additional interest expense in the year the bonds are sold.b. a reduction of interest expense in the year the bonds mature.c. a reduction in interest expense over the life of the bonds.d. additional interest expense over the life of the bonds.Where is debt callable by the creditor reported on the debtor's financial statements? a) Long term liability b) Current liability if the creditor intends to call the debt within the year , otherwise a long term liability. c) Current liability if it is probable that creditor will call the debt within the year, otherwise a long term liability. d) current liability
- If the sale of bonds falls between interest dates, interest accrued since the last interest payment would be O a. added to; debited to Interest Revenue O b. subtracted from; debited to Interest Revenue O c. subtracted from; credited to Interest Revenue O d. added to; credited to Interest Revenue the sale proceeds andBond issue costs, such as printing fees, legal fees, commissions, etc. are most appropriately accounted for by a. charging them to an expense account in the year the bonds are actually sold. b. debiting them to unamortized bond issue costs, setting them as a deferred charge on the statement of financial position, and amortizing them in a manner similar to bond discount over the life of the bond. c. charging them to an expense account in the year the bonds are originally dated whether or not they are sold in that year. d. considering them in the measurement of the bonds payable.Under IFRS, bond issuance costs, including the printing costs and legal fees associated with the issuance, should be:(a) expensed in the period when the debt is issued.(b) recorded as a reduction in the carrying value of bonds payable.(c) accumulated in a deferred charge account and amortized over the life of the bonds.(d) reported as an expense in the period the bonds mature or are redeemed.
- Which of the following is a current liability? Bond payable due in two years for which there is an adequate sinking fund. Bond payable due in three years expected to be refinanced. Bond payable due in eleven months for which there is an appropriation of retained earnings. Bond payable due in eight months and refinanced on a long-term basis at the end of reporting period.When bonds are acquired between interest payment dates, the price paid for the bond is: a. equal to the acquisition cost. b.increased by a charge for accrued interest to the date of purchase. c.decreased by a credit for accrued interest to the date of purchase. d.equal to the par value increased by a charge for accrued interest to the date of purchase.Bond issuance costs must be reported separately as deferred charges and charged to expense over the life of the bond issue. t or f?
- 5. The premium on bonds payable account is shown on the statement of financial position as a.a contra asset. b.a subtraction from a long-term liability. c.an addition to a long-term liability. d.a reduction of an expense.___ 47. The balance in Premium on Bonds Payable a. should be reported on the balance sheet as a deduction from the related bonds payable b. should be allocated to the remaining periods for the life of the bonds by the straight-line method, if the results obtained by that method materially differ from the results that would be obtained by the interest method c. would be added to the related bonds payable on the balance sheet d. should be reported in the paid-in capital section of the balance sheet ____ 48. The excess of sales price of treasury stock over its cost should be credited to a. Treasury Stock Receivable b. Premium on Capital Stock c. Paid-In Capital from Sale of Treasury Stock d. Income from Sale of Treasury Stock52 All of the following are current liabilities, except: Group of answer choices Serial bonds maturing in two years which are to be paid from sinking fund which is classified as noncurrent. Deposit on special orders from customers to be filled within one year. Accounts payable to be paid from cash on hand. Property dividends issuable, to be paid in inventory of the issuing firm within one year from the current statement of financial position date.