a 211.If bonds are originally sold at a discount using the straight-line amortization method a.interest expense in the earlier years of the bond’s life will be less than the interest to be paid. ...

^a

211.If bonds are originally sold at a discount using the straight-line amortization method

a.interest expense in the earlier years of the bond’s life will be less than the interest to be paid.

b.interest expense in the earlier years of the bond’s life will be the same as interest to be paid.

c.unamortized discount is subtracted from the face value of the bond to determine its carrying value.

1. 
   unamortized discount is added to the face value of the bond to determine its carrying value.
   

^a
212.Presented here is a partial amortization schedule for Courtney Company who sold €500,000, five year 10% bonds on January 1, 2013 for €520,000 and uses annual straight-line amortization.

Which of the following amounts should be shown in cell (i)?

a.€52,000

b.€54,000

c.€50,000

d.€10,000

^a
213.Presented here is a partial amortization schedule for Courtney Company who sold €500,000, five year 10% bonds on January 1, 2013 for €520,000 and uses annual straight-line amortization.

Which of the following amounts should be shown in cell (ii)?

a.€54,000

b.€46,000

c.€52,000

d.€48,000

^a
214.Presented here is a partial amortization schedule for Courtney Company who sold €500,000, five year 10% bonds on January 1, 2013 for €520,000 and uses annual straight-line amortization.

Which of the following amounts should be shown in cell (iii)?

a.€10,000

b.€20,000

c.€4,000

d.€2,000

^a
215.Presented here is a partial amortization schedule for Courtney Company who sold €500,000, five year 10% bonds on January 1, 2013 for €520,000 and uses annual straight-line amortization.

Which of the following amounts should be shown in cell (iv)?

a.€524,000

b.€520,000

c.€516,000

d.€518,000

^a

216.On January 1, Hurley Corporation issues $2,500,000, 5-year, 12% bonds at 96 with interest payable on July 1 and January 1. The entry on December 31 to record accrued bond interest and the amortization of bond discount using the straight-line method will include a

a.debit to Interest Expense, $150,000.

b.debit to Interest Expense, $300,000.

c.credit to Bonds Payable, $10,000.

d.credit to Bonds Payable, $20,000.

217.On January 1, 2014, ¥3,000,000,000, 10-year, 10% bonds, were issued for $2,910,000,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is

a.¥29,100,000.

b.¥9,000,000.

c.¥2,424,000.

d.¥750,000.

218.A corporation issues ¥1,000,000,000, 10%, 5-year bonds on January 1, 2014, for $958,000,000. Interest is paid annually on January 1. If the corporation uses the straight-line method of amortization of bond discount, the amount of bond interest expense to be recognized in December 31, 2014’s adjusting entry is

a.¥108,400,000.

b.¥100,000,000.

c.¥91,600,000.

d.¥8,400,000.

^a

219.Roman Company issued $1,000,000 of 6%, 5-year bonds at 98, with interest paid annually. Assuming straight-line amortization, what is the total interest cost of the bonds?

a.$300,000

b.$320,000

c.$280,000

d.$290,000

^a

220.Sunwood Company issued $1,200,000 of 6%, 5-year bonds at 98, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?

a.$1,176,000

b.$1,178,400

c.$1,180,800

d.$1,185,600