11) When a bond sells for 100, the bond is selling at ________.
A) a discount
B) a premium
C) par
D) the stated rate
12) When a bond sells for 99, the bond is selling at ________.
A) a discount
B) a premium
C) par
D) face value
13) When a bond sells for 98, the bond is selling at ________.
A) a discount
B) a premium
C) par
D) face value
14) When a bond sells for 97, the bond is selling at ________.
A) a discount
B) a premium
C) par
D) face value
15) Discount on bonds payable is a(n) ________.
A) asset
B) contra-liability
C) revenue
D) equity
16) Premium on bonds payable is a(n) ________.
A) asset
B) adjunct-liability
C) revenue
D) equity
17) On January 1, Wok 'n’ Roll, Inc. issued $50,000 worth of 8%, 20-year bonds for $52,950. These bonds sold at ________.
A) a discount
B) a premium
C) par
D) face value
18) On January 1, Wok ‘n’ Roll, Inc. issued $50,000 worth of 8%, 20-year bonds for $52,950. What is the amount of the first year’s interest payment?
A) $4,236.00
B) $2,950.00
C) $4,000.00
D) $236.00
19) Wok ‘n’ Roll, Inc. issued $50,000 worth of 8%, 20-year bonds for $52,950. How much cash will bondholders receive when the bonds mature? (Assume the final interest payment has already been made separately.)
A) $50,000.00
B) $52,950.00
C) $4,236.00
D) $4,000.00
20) On January 1, Bank, Rupp & Baroque, Inc. issued $50,000 worth of 10-year, 9% bonds for $48,890. These bonds sold at ________.
A) a discount
B) a premium
C) par
D) face value