Reference no: EM132483128

Question 1 - On March? 1, 2018, Barker Services issued a? 5% long-term notes payable for? $21,000. It is payable over a? 3-year term in? $7,000 annual principal payments on March 1 of each year plus? interest, beginning March? 1, 2019. How will the notes payable be shown on the balance sheet dated December? 31, 2018?

A. $7,000 shown as current liability and? $14,000 shown as? long-term liability

B. the entire? $21,000 shown as? long-term liability

C. $7,000 shown as current liability and? $21,000 shown as? long-term liability

D. ?$21,000 shown as current liability only

Question 2 - On January? 1, 2018, Benbrook Company purchased equipment and signed a six -year mortgage note for $110,000 at 15?%. The note will be paid in equal annual installments of $29,066?, beginning January? 1, 2019. Calculate the balance of Mortgage Payable after the payment of the first installment.? (Round your answer to the nearest whole? number.)

A. $80,934

B. $97,434

C. $82,983

D. $16,500

Question 3 - Determine whether the following bonds payable will be issued at face? value, at a? premium, or at a? discount:

A? 10% bonds payable is issued when the market interest rate is? 8%.

A? 10% bonds payable is issued when the market interest rate is? 10%.

A? 10% bonds payable is issued when the market interest rate is? 12%.

OPTIONS FOR EACH ONE ARE:

Discount

Face value

Premium

Question 4 - On July? 1, 2018, Jordie Equipment Dealer issued $600,000 of 9?% bonds payable that mature in seven years. These bonds were issued at face value and pay interest each June 30 and December 31. Each semiannual interest payment is $27,000.

TRUE

FALSE

Question 5 - On November? 1, 2018, Cleveland Services issued $311,000 of five-year bonds with a stated rate of 12?%. The bonds were issued at? par, and Cleveland makes semiannual payments on April 30 and October 31. On December? 31, 2018, Cleveland made an adjusting entry to accrue interest at year-end. No further entries were made until April? 30, 2019, when the first payment was made. What amount of interest expense was recorded for the period of January 1 to April? 30, 2019?? (Do not round any intermediate? calculations, and round your final answer to the nearest? dollar.)

A. $18,660

B. $12,440

C. $29,856

D. $37,320

Question 6 - On January? 1, 2019, Commercial Equipment Sales issued $34,000 in bonds for $19,700. These are six-year bonds with a stated interest rate of 11?%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June? 30, 2019?

A. $3,062

B. $1,192

C. $29,223

D. $1,870

Question 7 - Landings Glassware Company issues? $1,150,000 of? 15%, 10-year bonds at 95 on February? 28, 2019. The bonds pay interest on February 28 and August 31. The journal entry to record the issuance includes a? ________.

A. debit to Cash for? $1,150,000

B. credit to Bonds Payable for? $1,092,500

C. credit to Discount on Bonds Payable for? $57,500

D. debit to Cash for? $1,092,500

Question 8 - On January? 1, 2018, Westside Sales issued $18,000 in bonds for $24,800. These are eight-year bonds with a stated interest rate of 10?% that pay semiannual interest. Westside Sales uses the straight-line method to amortize the bond premium. After the first interest payment on June? 30, 2018, what is the bond carrying? amount? (Round your intermediate answers to the nearest? dollar.)

A. $18,425

B. $18,000

C. $24,800

D. $24,375