91. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the issuance of the bonds on January 1, 2013?
A.
Cash
|
800,000
|
|
Bonds Payable
|
|
800,000
|
B.
Bonds Payable
|
800,000
|
|
Cash
|
|
800,000
|
C.
Cash
|
800,000
|
|
Bonds Payable
|
|
772,000
|
Discount on Bonds Payable
|
|
28,000
|
D.
Cash
|
772,000
|
|
Premium on Bonds Payable
|
28,000
|
|
Bonds Payable
|
|
800,000
|
E.
Cash
|
772,000
|
|
Discount on Bonds Payable
|
28,000
|
|
Bonds Payable
|
|
800,000
|
92. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the first semiannual interest payment on June 30, 2013?
A.
Interest Expense
|
36,000
|
|
Cash
|
|
36,000
|
B.
Cash
|
36,000
|
|
Interest Expense
|
|
36,000
|
C.
Interest Expense
|
36,000
|
|
Discount on Bonds Payable
|
1,077
|
|
Cash
|
|
37,077
|
D.
Interest Expense
|
36,000
|
|
Premium on Bonds Payable
|
1,077
|
|
Cash
|
|
37,077
|
E.
Interest Expense
|
37,077
|
|
Discount on Bonds Payable
|
|
1,077
|
Cash
|
|
36,000
|
93. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the carrying value of the bond on January 1, 2019?
A. $772,000
B. $831,076
C. $784,924
D. $277,000
E. $800,000
94. On January 1, 2013, Jacob issues $800,000 of 9%, 13-year bonds at a price of 96½. Six years later, on January 1, 2019, Jacob retires 20% of these bonds by buying them on the open market at 105½. All semiannual interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the retirement of 20% of the bonds on January 1, 2019?
A.
Bonds Payable
|
160,000
|
|
Cash
|
|
156,985
|
Discount on Bonds Payable
|
|
3,015
|
B.
Bonds Payable
|
160,000
|
|
Loss on Retirement
|
11,815
|
|
Discount on Bonds Payable
|
|
3,015
|
Cash
|
|
168,800
|
C.
Bonds Payable
|
160,000
|
|
Discount on Bonds Payable
|
3,015
|
|
Cash
|
|
168,800
|
Gain on Retirement
|
|
5,785
|
D.
Bonds Payable
|
160,000
|
|
Premium on Bonds Payable
|
2,585
|
|
Discount on Bonds Payable
|
|
3,015
|
Cash
|
|
154,400
|
E.
Bonds Payable
|
168,800
|
|
Cash
|
|
168,800
|
95. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. What is the journal entry to record the issuance of these bonds?
A.
Cash
|
600,000
|
|
Bonds Payable
|
|
600,000
|
B.
Bonds Payable
|
600,000
|
|
Cash
|
|
600,000
|
C.
Cash
|
615,000
|
|
Bonds Payable
|
|
600,000
|
Premium on Bonds Payable
|
|
15,000
|
D.
Cash
|
600,000
|
|
Premium on Bonds Payable
|
15,000
|
|
Bonds Payable
|
|
615,000
|
E.
Cash
|
600,000
|
|
Discount on Bonds Payable
|
9,000
|
|
Bonds Payable
|
|
609,000
|
96. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium. What is the journal entry to record the first interest semi-annual interest payment on June 30, 2013?
A.
Interest Expense
|
33,000
|
|
Cash
|
|
33,000
|
B.
Cash
|
33,000
|
|
Interest Expense
|
|
33,000
|
C.
Interest Expense
|
32,500
|
|
Discount on Bonds Payable
|
500
|
|
Cash
|
|
33,000
|
D.
Interest Expense
|
32,500
|
|
Premium on Bonds Payable
|
500
|
|
Cash
|
|
33,000
|
E.
Interest Expense
|
33,000
|
|
Discount on Bonds Payable
|
|
500
|
Cash
|
|
32,500
|
97. On January 1, 2013, Jacob issues $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond premium or discount. What is the total interest expense for the life of these bonds?
A. $975,000
B. $964,000
C. $936,000
D. $772,000
E. $990,000
98. On January 1, 2013, Jacob issued $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium and interest is paid semiannually. If all interest has been accounted for properly, what is the carrying value of these bonds on January 1, 2019?
A. $472,000
B. $531,076
C. $584,924
D. $609,000
E. $600,000
99. On January 1, 2013, Jacob issued $600,000 of 11%, 15-year bonds at a price of 102½. The straight-line method is used to amortize any bond discount or premium and interest is paid semiannually. All interest has been accounted for (and paid) through December 31, 2018. The company retires 30% of these bonds by buying them on the open market at 98½.
What is the journal entry to record the retirement of 30% of the bonds on January 1, 2019?
A.
Bonds Payable
|
180,000
|
|
Cash
|
|
177,300
|
Discount on Bonds Payable
|
|
2,700
|
B.
Bonds Payable
|
180,000
|
|
Loss on Retirement
|
11,815
|
|
Discount on Bonds Payable
|
|
2,700
|
Cash
|
|
177,300
|
C.
Bonds Payable
|
180,000
|
|
Discount on Bonds Payable
|
2,700
|
|
Gain on Retirement
|
|
177,300
|
Cash
|
|
5,400
|
D.
Bonds Payable
|
180,000
|
|
Premium on Bonds Payable
|
2,700
|
|
Gain on Retirement
|
|
5,400
|
Cash
|
|
177,300
|
E.
Bonds Payable
|
180,000
|
|
Cash
|
|
180,000
|
100. On April 1, 2013, Jared Enterprises issues bonds dated January 1, 2013, that have a $2,430,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par plus three months' accrued interest. What is the total amount of cash Jared Enterprises will collect on April 1, 2013?
A. $2,600,100
B. $2,430,000
C. $2,472,525
D. $2,750,000
E. $2,515,050
101. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106 3/4. The interest payments are made on June 30 and December 31. The straight-line method is used to amortize any bond discount or premium. Lane elects a fiscal year ending September 30. What is the appropriate adjusting journal entry required for September 30, 2013?
A.
Interest Expense
|
22,925
|
|
Cash
|
|
22,925
|
B.
Interest Expense
|
22,925
|
|
Premium on Bonds Payable
|
1,575
|
|
Cash
|
|
24,500
|
C.
Interest Expense
|
11,462.50
|
|
Premium on Bonds Payable
|
787.50
|
|
Interest Payable
|
|
12,250
|
D.
Interest Payable
|
11,462.50
|
|
Premium on Bonds Payable
|
787.50
|
|
Cash
|
|
12,250
|
E.
Interest Payable
|
11,462.50
|
|
Discount on Bond Payable
|
787.50
|
|
Interest Expense
|
|
12,250
|
102. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106¾. The interest payments are made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as interest expense in the December 31, 2013, journal entry?
A. $24,500.00
B. $22,925.00
C. $12,250.50
D. $11,462.50
E. $13,458.00
103. On January 1, 2013, Lane issues $700,000 of 7%, 15-year bonds at a price of 106¾. The interest payments are made on June 30 and December 31. Lane elects a fiscal year ending September 30. What is the amount that would be recorded as cash paid in the December 31, 2013, journal entry?
A. $24,500
B. $22,925
C. $12,250
D. $11,462
E. $13,458