92) On September 30, 2010, Burrows, Inc. issued $100,000 worth of 30-year, 8% bonds at 100. The interest is paid annually on September 30. Burrow’s yearend is December 31. Fill in the correct dollar amount
AND
put an X in the appropriate box to indicate the financial statement where the amount will be found.
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Amount
At or for the
Year
ended
12/31/10
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Amount
At or for the
YEAR
ended
12/31/11
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IS
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BS
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SOCF
|
Interest payment
|
$
|
$
|
|
|
|
Interest payable
|
$
|
$
|
|
|
|
Interest expense
|
$
|
$
|
|
|
|
93) Match each of the following items with the appropriate consequence.
a. par value
b. bond discount
c. bond premium
______ 1. occurs when the stated rate of interest is greater than the market rate of interest
______ 2. occurs when the stated rate of interest is the same as the market rate of interest
______ 3. occurs when the stated rate of interest is less than the market rate of interest
94) Match each of the following items with the appropriate situation below
a. secured bonds
b. unsecured bonds
c. term bonds
d. serial bonds
______ 1. Team Shirts sells bonds backed by the value of its printing machines.
______ 2. Team Shirts issued bonds that mature in 2011, 2012, 2013, and 2014.
______ 3. Team Shirts issued bonds that mature in 2015.
______ 4. Team Shirts issued bonds that are backed by the credit rating of Team Shirts.
95) Match each of the following terms with the appropriate situation below.
a. callable bonds
b. convertible bonds
c. term bonds
d. serial bonds
______ 1. Tom’s Wear issued bonds that can be converted into Tom’s Wear stock.
______ 2. Tom’s Wear issued bonds that mature in 2011, 2010, 2011, and 2012.
______ 3. Tom’s Wear issued bonds that mature in 2015.
______ 4. Tom’s Wear issued bonds that can be recalled and redeemed by Toms’ Wear beginning in 2011.