Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Chapter 13, Problem 16MC
Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The
A. a credit to Bonds Payable for $102,500
B. a credit to cash for $102,500
C. a debit to cash for $100,000
D. a credit to Premium on Bonds Payable for $2,500
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Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual interest payment on these bonds woulda. debit Cash and credit Interest Payable.b. debit Cash and credit Interest Expense.c. debit Interest Expense and credit BondsPayable.d. debit Interest Expense and credit Cash.
On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include
O a credit to Bonds Payable for $104081500.
a credit to Interest Expense for $3031500.
O a credit to Premium on Bonds Payable for $3031500.
O a debit to Cash for $101050000.
Keys Inc. Issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes
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...
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