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Unformatted text preview: B. Sold for the $500,000 face amount less $10,000 of accrued interest. C. Sold at a premium because the stated interest rate was higher than the market rate. D. Sold at a discount because the market interest rate was higher than the stated rate. 4. Presented below is a partial amortization schedule for Premium Foods: 1. Record the bond issue. 2. Record the first interest payment. 5. Magic Mountain retires its 8% bonds for $125,000 before their scheduled maturity. At the time, the bonds have a carrying value of $118,000. Record the early retirement of the bonds. 6. Return on assets is calculated as net income divided by the ending balance for total assets. FALSE Return on assets is calculated as net income divided by average total assets....
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- Summer '08