Accounting multiple choice chapter 10
Bargain Company has $1,500,000 of bonds outstanding. The unamortized premium is $19,600. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?
A $4,600 gain
The interest rate investors demand for loaning funds is the
A market interest rate
Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. The entry made by Givens Brick Company on January 1 to record the proceeds and issuance of the note is
B Cash 600,000 Notes Payable 600,000
Stockholders of a company may be reluctant to finance expansion through issuing more equity because
B their earnings per share may decrease
The interest charged on a $90,000, 3-month note payable, at the rate of 8%, would be
C $1,800
Valerie's Salon has total receipts for the month of $20,670 including sales taxes. If the sales tax rate is 6%, what are Valerie's sales for the month?
C $19,500
Unearned Rent Revenue is
C a revenue account
Liabilities are classified on the balance sheet as current or
C long-term
Bond interest paid is
C the same whether bonds sell at a discount or premium
Hernandez Corporation issues 2,000, 10-year, 8%, $1,000 bonds dated January 1, 2015, at
D Debit to Cash for $1,960,000