Reference no: EM131006581
The following questions dealing with long-term liabilities are adapted from questions that previously appeared on Certified Management Accountant (CMA) examinations. The CMA designation sponsored by the Institute of Management Accountants (www.imanet.org) provides members with an objective measure of knowledge and competence in the field of management accounting. Determine the response that best completes the statements or questions.
Questions 1 and 2 are based on the following information. On January 1, Matthew Company issued 7% term bonds with a face amount of $1,000,000 due in 8 years. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest rate of 6%.
1. The bonds were issued on January 1 at
a. a premium.
b. an amortized value.
c. book value.
d. a discount.
2. Assume the bonds were issued on January 1 for $1,062,809. Using the effective interest amortization method, Matthew Company recorded interest expense for the 6 months ended June 30 in the amount of
a. $35,000
b. $70,000
c. $63,769
d. $31,884
3. 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.
|
Reflection of the era in which they were created
: What list of found objects and imagery would you use if you were creating an art work about your daily experience?
|
|
Election and the power of progressivism
: What particular challenges did women encounter during the Gilded Age (roughly 1880-1920)? If you were a working woman in 1912, and you could have voted (although in most states you could not) which candidate from the election of 1912 (Taft,Debs) do y..
|
|
Sales representative with coast-to-coast trans
: Gina Robertson is a sales representative with Coast-to-Coast Trans, a company that provides full service chartered flights—airplanes, pilots, staff, and services—to client groups. She has just closed a large sale of several flights each week for four..
|
|
Which of the following will affect all reaction rates
: Which of the following will affect all reaction rates? the concentrations of the reactants the temperature of the reactants
|
|
A bond issue sold at a premium is valued on the statement
: A bond issue sold at a premium is valued on the statement of financial position at thea. 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 ..
|
|
Moment of magic for new members of the museum
: Ana Lexington is the director of Membership Programs for the St. Louis Museum. She develops the programs and sells them to museum visitors. The programs are tiered and include discounts and special member-only deals. Which of the following actions by..
|
|
Sexual harassment- how it can destroy a project or program
: A strong Human Resource component or organization is critical to the long term success of the organization. Some of the best organizations, projects and initiatives have been brought down by a failure of Human Resources to properly identify variou..
|
|
Write an essay about world war ii and the american homefront
: Write an essay about World War II and the American Homefront. Essays should be doubled-spaced, size 12 font, with one-inch margins all around.
|
|
Sales representative for the holiday zoo
: Tommy DesDain is the sales representative for the Holiday Zoo. He sells events, such as wedding receptions, corporate dinners, and fundraisers that are held on zoo grounds. Tommy has just finished negotiating all the details of Carole Madison’s upcom..
|