Multiple Choice Questions1. Bond carrying value equals Bonds Payablea. Minus Premium on Bonds Payable.b. Plus Discount on Bonds Payable.c. Minus Discount on Bonds Payable.d. Plus Premium on Bonds Payable.e. Both a and bf. Both c and d2. What type of account is Discount on Bonds Payable and what is its normal balance?a. Adjusting amount; Creditb. Reversing account; Debitc. Contra liability; Creditd. Contra liability; DebitQuestions 3-6 use the following data:Spring Company sells $200,000 of 12%, 10-year bonds for 96 on April 1, 2010. The market rate of interest on that day is 12.5%. Interest is paid each year on April 1.3. The entry to record the sale of the bonds on April 1 would be4. Spring Company uses the straight-line amortization method. The amount of interest expense on April 1 of each year will bea. $24,000.b. $25,000.c. $24,800.d. $32,000.e. None of these.5. Write the adjusting entry required at December 31, 2010.6. Write the journal entry requirements at April 1,2011.
View Solution:
Multiple Choice Questions 1 Bond carrying value equals Bonds Pa

"Get 15% discount on your first 3 orders with us"
Use the following coupon

Order Now