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Jump to Navigation Frame Your location: Home Page Quizzes Chapters 13 and 14 Quiz Assessments View All Submissions View Attempt View Attempt 1 of 1 Title: Chapters 13 and 14 Quiz Started: December 4, 2009 11:11 AM Submitted: December 4, 2009 1:57 PM Time spent: 02:46:13 Total score: 110/140 = 78.5714% Total score adjusted by 0.0 Maximum possible score: 140 1. On May 1, 19X2 a company issued, at 103 plus accrued interest, 500 of its 12%, $1,000 bonds. The bonds are dated January 1, 19X2 and mature on January 1, 19X7. Interest is payable semiannually on January 1 and July 1. The journal entry to record the issuance of the bonds and the receipt of the cash proceeds would include which of the following entries Student Response Value Correct Answer Feedback 1. Dr. Interest expense $20,000 2. Dr. Interest expense $10,000 3. Cr. Interest expense $20,000 100% 4. Cr. Interest expense $10,000 General Feedback: B/p recorded at Face value; Premium is 3% of face value Interest expense = $500,000 * 12/2% * 4/6 months = 20,000 Score: 10/10
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2. On September 1, 1991, Hall Corp. redeemed $500,000 of its 12%, 15-year bonds at 102. Related unamortized bond premium and issue costs at that date were $8,000 and $10,000, respectively. What amount should Hall record as an gain or loss on redemption? Student Response Value Correct Answer Feedback 1. $12,000 loss 100% 2. $12,000 gain 3. $28,000 loss 4. $28,000 gain General Feedback: Dr B/P 500,000, dr Prem 8,000, cr Cash 510 cr Issue Cost 10,000 Need 12,000 loss to balance the equation Score: 10/10 3.
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A liability is required to be accrued for the cost of compensation for future absences if certain conditions are met. Which of the following is not a condition for accrual? Student Response Value Correct Answer Feedback 1. The employer's obligation related to employee's rights to receive compensation for future absences is attributable to employee's services already rendered
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quiz13&14 - Jump to Navigation Frame Your location:...

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