The writer is very fast, professional and responded to the review request fast also. Thank you.
1. Bonds usually sell at their: A. Maturity value.B. Face value.C. Present value.D. Statistical expected value. Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2009. LPC’s accountant has projected the following amortization schedule from issuance until maturity:2. LPC issued the bonds: A. At par.B. At a premium.C. At a discount.D. Cannot be determined from the given information.3. What is the annual stated interest rate on the bonds? A. 3.5%B. 6%C. 7%D. None of these is correct.4. What is the effective interest rate on the bonds? A. 3%B. 3.5%C. 6%D. 7%5. LPC calls the bonds at 103 immediately after the interest payment on 12/31/10 and retires them. What gain or loss, if any, would LPC record on this date? A. No gain or lossB. $3,717 gainC. $6,000 lossD. $2,283 loss6. A $500,000 bond issue sold for 98. Therefore, the bonds: A. Sold at a discount because the stated rate of interest was lower than the effective rate.B. Sold for the $500,000 face amount less $10,000 of accrued interest.C. Sold at a premium because the stated rate of interest was higher than the yield rate.D. Sold at a discount because the effective interest rate was lower than the face rate.7. How would the carrying value of bonds payable be affected by the amortization of each of the following?8. On January 1, 2009, Legion Company sold $200,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December 31. The bonds were sold for $177,000, priced to yield 12%. Legion records interest at the effective rate. Legion should report bond interest expense for the six months ended June 30, 2009, in the amount of: A. $ 8,850B. $10,000C. $10,620D. $12,0009. On January 1, 2009, an investor paid $291,000 for bonds with a face amount of $300,000. The stated rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2009 (assume annual interest payments and amortization)? A. $23,280.B. $29,100.C. $24,000.D. $30,000.10. On January 31, 2009, B Corp. issued $600,000 face value, 12% bonds for $600,000 cash. The bonds are dated December 31, 2008, and mature on December 31, 2018. Interest will be paid semiannually on June 30 and December 31. What amount of accrued interest payable should B report in its September 30, 2009, balance sheet? A. $18,000. B. $36,000. C. $54,000. D. $48,000.
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more