1. If bonds are issued at 101.25, this means that C ...
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Accounting
1. If bonds are issued at 101.25, this means that C
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| a. | a $1,000 bond sold for $101.25. |
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| b. | the bonds sold at a discount. |
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| c. | a $1,000 bond sold for $1,012.50. |
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| d. | the bond rate of interest is 10.13% of the market rate of interest. |
2. The Discount on Bonds Payable account is shown on the balance sheet as
D
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3. When will bonds sell at a discount? B
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| a. | The credit standing of the issuing company is not as good as other companies in a similar line of business. |
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| b. | The face rate of interest is less than the market rate of interest at the time of issue. |
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| c. | The face rate of interest is more than the market rate of interest at the time of issue. |
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| d. | The issuing company will be able to retire the bonds at less than face at maturity. |
Can you help me to confirm If I have the right answer?
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