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