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Ch 9 5 morgan company issues 20 year 750000 bonds

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Ch 9 - #5. Morgan Company issues 20-year, $750,000 bonds with a 9% interest rate. The current market rate is8%. The amount of cash paid for interest in each semiannual interest payment is:A. $60,000.B. $33,750.C. $67,500.D. $30,000.E. $375,000.
Ch 9 - #6. A company issued 5 year, $100,000 bonds with a 7% interest rate for an issue price of $97,947. Themarket rate when the bonds were issued was 7.5%. The discount on bonds recorded at issuance was $2,053. Theamount of interest expense for the first semiannual interest payment is:
Ch 9 - #7. Manco received $105,500 issue price exchange for issuing $100,000 face amount bonds. What is thecorrect journal entry to record this transaction?ChoiceAccountDebitCreditABonds Payable105,500Cash105,500BCash105,500Bonds Payable105,500CCash105,500Bonds Payable100,000Premium on Bonds5,500DCash100,000Discount on Bonds5,500Bonds Payable105,500CHAPTER 10Ch 10 - #1. Outstanding common stock refers to the total number of shares:
Ch 10 - #2. Which of the following represents a disadvantage of equity financing?
Ch 10 - #3. Comfort Mattresses, Inc. sold 26,000 shares of its $1 par value common stock at a cashprice of $12 per share. The entry to record this transaction would be:A. Debit Cash $312,000; credit Common Stock $26,000; credit Additional Paid-in Capital $286,000.B. Debit Cash for $312,000; credit Common Stock $312,000.C. Debit Common Stock $26,000; debit Additional Paid-in Capital $286,000; credit Cash $312,000.D. Debit Cash $312,000; credit Stock Payable $286,000, credit Common Stock $26,000.E. Debit Common Stock $26,000; credit Cash $26,000.

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Term
Spring
Professor
G.A.Gross
Tags
Balance Sheet, Generally Accepted Accounting Principles

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