11 - 11 On January 1, 2010, Scissors Corp. issues $200,000,...

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11 On January 1, 2010, Scissors Corp. issues $200,000, 5-year, 7% bonds at face value. The entry to record the issuance of the bonds would include a: (a) debit to cash for $14,000. (b) debit to bonds payable for $200,000. (c) credit to bonds payable for $200,000. (d) credit to bond interest expense of $14,000. Answer: (c) credit to bonds payable for $200,000. 12 Four-Nine Corporation issued bonds that pay interest every July 1 and January 1. The entry to accrue bond interest at December 31 includes a: (a) debit to Interest Payable. (b) credit to Cash. (c) credit to Interest Expense. (d) credit to Interest Payable. Answer: (d) credit to Interest Payable. 13 Kant Corporation retires its $100,000 face value bonds at 105 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $103,745. The entry to record the redemption will include a: (a) credit of $3,745 to Loss on Bond Redemption. (b)
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11 - 11 On January 1, 2010, Scissors Corp. issues $200,000,...

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