11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen Student Khoa Nguyen Submitted 11 01 21 12 35 Instructor Alexander Sueiro Course ACG2021 Fall 2021 Sueiro Assignment Chapter 9 Practice Quiz Not for Credit 1 The discount on a bond payable becomes A a reduction of interest expense in the year the bonds mature B additional interest expense over the life of the bonds C additional interest expense in the year the bonds are sold D a reduction in interest expense over the life of the bonds YOU ANSWERED A 2 266 000 Davidson What is the times interest earned ratio Round your final answer to two decimal places Corporation reported net income of income before taxes of 120 000 and interest expense of 38 000 Click the icon to see the Worked Solution Review Only 3 Amortizing the discount on bonds payable is necessary only if the bonds were issued at more than face value increases the recorded amount of interest expense reduces the carrying value of the bond liability reduces the semiannual cash payment for interest YOU ANSWERED D 4 Corporation issued Duke on January 1 year on January 1 and July 1 The corporation uses the straight line method of amortization December 31 The amount of discount amortization on July 1 2 700 000 15 bonds for 2 484 000 would be 2019 4 2019 Duke Interest is paid semiannually s fiscal year ends on Review Only Click the icon to see the Worked Solution A 8 00 B 7 00 C 4 16 D 3 16 A B C D A 7 200 B 14 400 C 216 000 D 108 000 https xlitemprod pearsoncmg com api v1 print highered 1 6 11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen 5 The carrying value of Bonds Payable equals A Bonds Payable minus Discount on Bonds Payable B Bonds Payable plus Discount on Bonds Payable C Bonds Payable plus Accrued Interest D Bonds Payable minus Premium on Bonds Payable 6 Mission Furniture issued 500 000 in bonds payable at par The journal entry to record a semiannual interest payment on these bonds would A debit Interest Expense and credit Cash B debit Cash and credit Interest Payable C debit Interest Expense and credit Bonds Payable D debit Cash and credit Interest Expense YOU ANSWERED C 7 Which of the following items is most likely a short term liability A Accounts payable B Deferred income taxes C Bonds payable D Finance lease covering 30 year term YOU ANSWERED C A a debit to Discount on Bonds Payable for 80 000 B a credit to Cash for 2 080 000 C a debit to Bonds Payable for 2 000 000 D all of the above YOU ANSWERED D 8 The journal entry on the maturity date to record the retirement of bonds with a face value of a discount includes 80 000 2 000 000 that were issued at https xlitemprod pearsoncmg com api v1 print highered 2 6 11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen 9 A bond with a face amount of 12 000 has a current price quote of 101 65 What is the bond s price Click the icon to see the Worked Solution Review Only A 12 198 00 B 1 219 80 C 121 980 D 12 101 65 10 The Discount on Bonds Payable account A is a miscellaneous revenue account B is expensed at the bond s maturity is a contra account to Bonds Payable C D is an expense account YOU ANSWERED B A 751 400 B 717 600 C 726 050 D 734 500 A exchangeable bonds B callable bonds C convertible bonds D equity bonds 11 Company issued Beltran amortization what is the carrying value of the bonds after one year year bonds for 650 000 6 113 five with interest paid annually Assuming straight line Click the icon to see the Worked Solution Review Only 12 Corporate bonds that can be exchanged for shares of the corporation s common stock if certain conditions are met are called https xlitemprod pearsoncmg com api v1 print highered 3 6 11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen 13 Unlimited reported operating income of 110 000 Trunks weighted average number of shares of common stock outstanding during the year was times interest earned ratio Round your final answer to two decimal places interest expense of 858 000 and net income of 130 000 553 520 shares What is the The Click the icon to see the Worked Solution Review Only A 8 80 B 6 03 C 5 03 D 7 80 YOU ANSWERED A 14 Moonlight 13 5 day is Intermediary and final answer calculations are rounded to the nearest whole number 77 9537 Company sells The market rate of interest on that Interest is paid each year on April 1 The entry to record the sale of the bonds on April 1 would be as follows year bonds for on April 1 300 000 2018 of 15 10 Review Only Click the icon to see the Worked Solution A Cash B Cash C Cash D Cash Bonds Payable Bonds Payable Discount on Bonds Payable Bonds Payable Discount on Bonds Payable Bonds Payable YOU ANSWERED C 300 000 233 861 300 000 233 861 66 139 300 000 233 861 66 139 233 861 300 000 https xlitemprod pearsoncmg com api v1 print highered 4 6 11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen 15 What type of account is Discount on Bonds Payable and what is its normal balance 16 Luvenia 640 000 Corporation retires its bonds at 107 on January 1 after the payment of interest The face value of the bonds is The carrying value of the bonds at retirement is 659 200 The entry to record the retirement will include a Review Only A Contra liability Debit B Reversing account Debit C Contra liability Credit D Adjusting account Credit YOU ANSWERED C Click the icon to see the Worked Solution A credit of 25 600 to Premium on Bonds Payable B debit of 25 600 to Premium on Bonds Payable C credit of 19 200 to Premium on Bonds Payable D debit of 19 200 to Premium on Bonds Payable YOU ANSWERED A A maturity value of the bonds B face value of the bonds C carrying value of the bonds D original selling price of the bonds 18 The debt ratio is calculated by dividing A B C D total assets by total debt long term liabilities by total assets total debt by total assets total assets by long term liabilities YOU ANSWERED A 17 When a company retires bonds early the gain or loss on the retirement is the difference between the cash paid and the https xlitemprod pearsoncmg com api v1 print highered 5 6 11 1 21 12 36 PM Chapter 9 Practice Quiz Not for Credit Khoa Nguyen 19 A bond with a face value …