BMGT 220 Lecture 3: Chapter 12 Practice Questions
Document Summary
Chapter 12 practice questions (long-term liabilities: bonds and notes) B: rich company issued bonds with a maturity amount of ,000 and a maturity ten years from date of issue. On october 1, 2010, bartley corporation issued 5%, 10-year bonds with a face value of ,000 at. B: interest will be paid on october 1 and april 1. The entry to record the issuance of the bonds would include: credit of ,500 to interest payable, credit of ,000 to premium on bonds payable, credit of ,000 to bonds payable, debit of ,000 to bonds payable. On january 1, 2010, huber co. sold 12% bonds with a face value of ,000. The bonds mature in five years, and interest is to be paid semiannually. The bonds were sold for ,328 to yield 10%. Determine the total interest expense for huber over the life of these bonds: $ 360,000, $ 346,328, $ 313,672, $ 406,328.