11/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered1/61.2.3.4.Student: Khoa Nguyen Submitted: 11/01/21 12:35Instructor: Alexander Sueiro Course: ACG2021 - Fall 2021 - SueiroAssignment: Chapter 9 - Practice Quiz(Not for Credit)The discount on a bond payable becomesA. 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.Review Only Corporation reported net income of , income before taxes of and interest expense of . What is the times-interest-earned ratio? (Round your final answer to two decimal places.)Davidson $120,000 $266,000 $38,000 Click the icon to see the Worked Solution.A. 8.00B. 7.00C. 4.16D. 3.16Amortizing the discount on bonds payableA. is necessary only if the bonds were issued at more than face value.B. increases the recorded amount of interest expense.C. reduces the carrying value of the bond liability.D. reduces the semiannual cash payment for interest.YOU ANSWERED: D.Review Only Corporation issued , -year, % bonds for on January 1, . Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. 's fiscal year ends on December 31. The amount of discount amortization on July 1, , would beDuke $2,700,000 15 4 $2,484,000 2019Duke2019 Click the icon to see the Worked Solution.A. $7,200B. $14,400C. $216,000D. $108,00011/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered2/65.6.7.8.The carrying value of Bonds Payable equalsA. 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.Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record a semiannual interest payment on these bonds wouldA. 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.Which of the following items is most likely a short-term liability?A. Accounts payableB. Deferred income taxesC. Bonds payableD. Finance lease covering 30-year termYOU ANSWERED: C.The journal entry on the maturity date to record the retirement of bonds with a face value of that were issued at a discount includes$2,000,000$80,000A. a debit to Discount on Bonds Payable for .$80,000B. a credit to Cash for .$2,080,000C. a debit to Bonds Payable for .$2,000,000D. all of the above.YOU ANSWERED: D.11/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered3/69.10.11.12.Review OnlyA bond with a face amount of $ has a current price quote of . What is the bond's price?12,000 101.65 Click the icon to see the Worked Solution.A. $12,198.00B. $1,219.80C. $121,980D. $12,101.65The Discount on Bonds Payable accountA. is a miscellaneous revenue account.B. is expensed at the bond's maturity.C. is a contra account to Bonds Payable.D. is an expense account.YOU ANSWERED: B.Review Only Company issued , %, -year bonds for , with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?Beltran $650,000 6 five 113 Click the icon to see the Worked Solution.A. $751,400B. $717,600C. $726,050D. $734,500Corporate bonds that can be exchanged for shares of the corporation's common stock if certain conditions are met are calledA. exchangeable bonds.B. callable bonds.C. convertible bonds.D. equity bonds.11/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered4/613.14.Review Only Unlimited reported operating income of , interest expense of , and net income of . The weighted-average number of shares of common stock outstanding during the year was shares. What is the times-interest-earned ratio? (Round your final answer to two decimal places.)Trunks $858,000 $110,000 $553,520130,000 Click the icon to see the Worked Solution.A. 8.80B. 6.03C. 5.03D. 7.80YOU ANSWERED: A.Review Only Company sells of %, -year bonds for on April 1, . The market rate of interest on that day is %. Interest is paid each year on April 1. The entry to record the sale of the bonds on April 1 would be as follows: (Intermediary and final answer calculations are rounded to the nearest whole number.)Moonlight $300,000 10 15 77.9537 201813.5 Click the icon to see the Worked Solution.A.Cash300,000Bonds Payable 300,000B.Cash233,861Bonds Payable 233,861C.Cash300,000Discount on Bonds Payable 66,139Bonds Payable 233,861D.Cash233,861Discount on Bonds Payable66,139 Bonds Payable 300,000YOU ANSWERED: C.11/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered5/615.16.17.18.What type of account is Discount on Bonds Payable and what is its normal balance?A. Contra liability; DebitB. Reversing account; Debit C. Contra liability; CreditD. Adjusting account; CreditYOU ANSWERED: C.Review Only Corporation retires its bonds at on January 1, after the payment of interest. The face value of the bonds is . The carrying value of the bonds at retirement is . The entry to record the retirement will include aLuvenia 107$640,000 $659,200 Click the icon to see the Worked Solution.A. credit of to Premium on Bonds Payable.$25,600B. debit of to Premium on Bonds Payable.$25,600C. credit of to Premium on Bonds Payable.$19,200D. debit of to Premium on Bonds Payable.$19,200YOU ANSWERED: A.When a company retires bonds early, the gain or loss on the retirement is the difference between the cash paid and theA. maturity value of the bonds.B. face value of the bonds.C. carrying value of the bonds.D. original selling price of the bonds.The debt ratio is calculated by dividing:A. total assets by total debt.B. long-term liabilities by total assets.C. total debt by total assets.D. total assets by long-term liabilities.YOU ANSWERED: A.11/1/21, 12:36 PMChapter 9 - Practice Quiz (Not for Credit)-Khoa Nguyenhttps://xlitemprod.pearsoncmg.com/api/v1/print/highered6/619.20.21.22.Review OnlyA bond with a