Bonds sold at .975 would have a ...?

DR to Discount on Bonds Payable

The rate of interest listed on the bond is called the...?

Contract, Coupon or Stated Rate

When the Bond's rate is less than the market rate, during interest payments...?

Amortize with a CR to Discount on BP

Debt to Equity equals....?

Total Liabilities / Stockholder Equity

The payment at maturity would look like ...?

DR to Bonds Payable (BP) and CR to Cash

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BA 211 - Chapter 9 - Long-term Debt

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Questions 13

Answers

1
Bonds sold at .975 would have a ...?
CR to Premium on Bonds Payable
DR to Discount on Bonds Payable
CR to Premium on Bonds Payable
CR to Discount on Bonds Payable
2
All is true about Bonds, except?
Is an interest-bearing note.
May pay interest semiannually, quarterly or yearly
Is a Long-Term Liability
Is a Shorter-Term Liability
3
The rate of interest listed on the bond is called the...?
Effective Rate
Market Rate
Contract, Coupon or Stated Rate
Discount Rate
4
Bonds that can be purchased back by the issuing company are called "Callable"?
True
False
5
The journal entry to record a lease includes...?
A CR to Note Payable
A DR to Lease Liability
A CR to Lease Liability
A CR to Lease Asset
6
When the the market rate equals the contract rate, then the bond sells at...?
A Premium
A Premium Discount
A Discount
Face Amount
7
A Bond that can be exchanged for Common Stock is a "Callable Bond"?
False
True
8
When the Market Rate is less than the Contract rate...?
CR to Premium on Bonds Payable
DR to Discount on Bonds Payable
DR to Premium on Bonds Payable
CR to Discount on Bonds Payable
9
When the Bond's rate is less than the market rate, during interest payments...?
Amortize with a CR to premium on BP
Amortize with a CR to Discount on BP
Amortize with a DR to Premium on BP
Amortize with a DR on Discount on BP
10
Bonds issued at Face Amount will have a ...?
CR to Bonds Payable
CR to Cash
DR to Bonds Payable
DR to A/R
11
After the final interest payment on a maturing bond, the balance in the Discounts on BP would be...?
The carrying value
The Bond Payable amount
Zero
The last payment amount
12
Debt to Equity equals....?
Total Liabilities / Average Stockholder Equity
Total Current Liabilities / Average Stockholder Equity
Stockholder Equity / Total Liabilities
Total Liabilities / Stockholder Equity
13
The payment at maturity would look like ...?
DR to Interest Expense and a CR to Bonds Payable and Cash
DR to Bonds Payable (BP) and CR to Cash
DR to Cash and a CR to Bonds Payable
DR to Interest Expense and a CR to BP and Cash

BA 211 - Chapter 9 - Long-term Debt Flashcards | StudBud