Cash increased 98000
Discount on bonds increased 2000
Bonds payable increased 100000
Which of the following describes the transaction
a. issued bonds for 98000
2. If the stated interest for a bond is the same as the market interest rate the bonds will be issued
a. at face value
when market rate = coupon rate, the bonds sell at par
market > coupon, sells at discount
market < coupon, sells at premium
3. At the end of the life of bonds, regardless of premium or discount, the total interest expense will equal the interest paid at
b. market interest rate
4. A discount or premium on bonds payable can be define by which of the following
a. difference b/w market price on issue date and face value
God, this stuff sucks. I'm only on the Stocks chapter; haven't even gotten through Bonds yet. Hang in there, buddy. My 7 is scheduled for three weeks from now and I have no idea what I'm doing!
I need help on this, its kinda rough. thanks.
1. James Corp recorded following Transactions
Cash increased 98000
Discount on bonds increased 2000
Bonds payable increased 100000
Which of the following describes the transaction
a. issued bonds for 98000
b. issued bonds for 102000
c. issued bonds at a 2000 premium
d. signed note payable for 98000
2. If the stated interest for a bond is the same as the market interest rate the bonds will be issued
a. at face value
b. at a discount
c. at a premium
3. At the end of the life of bonds, regardless of premium or discount, the total interest expense will equal the interest paid at
a. stated interest rate
b. market interest rate
c. prime interest rate
4. A discount or premium on bonds payable can be define by which of the following
a. difference b/w market price on issue date and face value
b. difference b/w the call price and face value of bond
c. market rate of interest on the date of bond issuance
d. different b/w interest rate and market price of bond
