The journal entry to record issuing bonds at a discount will include a debit to the Cash account for the following amount: The face value of the bonds O The stated value of the bonds O The maturity value of the bonds The face value of the bonds minus the amount of the discount O The face value of the bonds plus the amount of the discount

The journal entry to record issuing bonds at a discount will include a debit to the Cash account for the following amount: The face value of the bonds O The stated value of the bonds O The maturity value of the bonds The face value of the bonds minus the amount of the discount O The face value of the bonds plus the amount of the discount

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter22: Corporations: Bonds

Section: Chapter Questions

Problem 3TF: When bonds are issued at face value, the debit to Cash and credit to Bonds Payable are for the same...

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The journal entry to record the issuance of bonds at a premium consists of a debit to Cash, a debit to Premium on Bonds Payable, and a credit to the Bonds Payable account. True or False True False
When 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 Income
interest payment for bonds is calculated using the face value of the bonds and the __________ A. market value B. market interest rate C. stated interest rate D. original cost
On the balance sheet, the account Premium on Bonds Payable is: Select one: a. Added to Bonds Payable b. Added to Bond Interest Expense c. Deducted from Bond Interest Expense d. Deducted from Bonds Payable
The journal entry a company makes for the payment of interest, interest expense, and amortization of bond premium is a.debit Interest Expense, credit Cash and Premium on Bonds Payable b.debit Interest Expense, credit Cash c.debit Interest Expense and Premium on Bonds Payable, credit Cash d.debit Interest Expense, credit Interest Payable and Premium on Bonds Payable
For each of the following items, specify whether the information would most likely be found on the balance sheet, the income statement, the statement of cash flows, or in the notes to the statements. 1. The amount of a bond liability. 2. A description of any bond covenants. 3. The coupon rates associated with bond issuances. 4. Interest expense for the period. 5. The maturity dates associated with bond issuances. 6. Cash interest paid for the period. Location
The Discount on Bonds Payable accounta. is an expense account.b. is a contra account to Bonds Payable.c. is expensed at the bond’s maturity.d. is a miscellaneous revenue account.
What is the journal entry to record the bond interest payment if you do not have to neither a premium or discount is involved? O Debit Interest Expense; Credit Cash O Debit Cash; Credit Interest Payable O Credit Cash; Debit Interest Expense O Debit Interest Payable; Credit Interest Expense
How would the balance of the discount on bonds payable account usually be reported in the balance sheet? Current Assets section Current Liabilities section Long-Term Liabilities section Investments section
Which accounts are debited and which are credited if a bond issue originally sold at a premium is redeemed before maturity at 97 immediately following the payment of interest? Debits: Credits:
When bonds are issued at a premium and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is: Select one: a. Less than the interest expense b. Equal to the interest expense c. Greater than the interest expense d. More than if the bonds had been sold at a discount e. Less than if the bonds had been sold at a discount
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.