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- If the carrying amount of bonds redeemed is more than the redemption price, the difference is recorded as a a. discount. b. premium. c. gain. loss. O d.. Distinguish between the following values relative to bonds payable: a. Maturity value. b. Face value. c. Market (fair) value. d. Par value.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
- The carrying value on bonds equals Bonds Payablea. minus Premium on Bonds Payable.b. plus Discount on Bonds Payable.c. plus Premium on Bonds Payable.d. minus Discount on Bonds Payable.e. both a and bf. both c and dThe amount loaned when a bond is issued is a. the principal. b. the dividend. c. its maturity. d. its par value.When a bond is first issued, it is sold at a. any of these. b. discount. c. face value. d. premium.
- a. Define what the operational cycle is. b. Indicate in your own words the meaning of the following concepts related to bonds payable: a) maturity value b) face value c) market value d) par value.Which of the following apply to bonds? Select all the apply a. Earns gains from dividends b. Earns gains from interest c. Prices are determined by present value d. Prices are determined by supply and demand e. Have primary and secondary markets f. Have primary markets onlyBonds priced at a discount trade ___ their par value, A) above B) at C) below while bonds priced at a premium trade ____ their par value. A) above B) at C) below
- 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.A bond is purchased at a discount and will be accounted for under the amortized cost model. The entry to record the amortization of the discount includes a O debit to the investment account. O debit to Interest Income. O credit to the investment account. O debit to "Gain from Discount.A bond issue sold at a premium is valued on the statement of financial position at the a. maturity value. b. maturity value plus the unamortized portion of the premium. c. cost at the date of investment. d. maturity value less the unamortized portion of the premium.