294. If bonds are issued at face value (par), it indicates that the ________________ interest rate must be equal to the ________________ interest rate. 295. If a $1 million, 10%, 10-year bond...





294. If bonds are issued at face value (par), it indicates that the ________________ interest rate must be equal to the ________________ interest rate.







295. If a $1 million, 10%, 10-year bond issue was sold at 97, the cash proceeds from the issuance of the bonds amounted to $________________.







296. When bonds are converted into common stock and the conversion is recorded, the ________________ of the bonds is transferred to paid-in capital accounts.







a

297.The market price of a bond is obtained by discounting to its present value the _______________ paid at maturity, and all _____________ payments to be made over the term of the bond.







a

298.When there is a ________________ difference between the straight-line and effective-interest methods of amortization, the ________________ method is required under GAAP.







a

299.A method of amortizing bond discount or premium that allocates an equal amount each period is the ________________ method.







a300.The straight-line method of amortization allocates the same amount to _______________ in each interest period.















May 15, 2022
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