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Hip Javed Exit Su A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $5,300. The company calls these bonds at a price of $91,000 the gain or loss on retirement is: 2:16:31 Multiple Choice O $9,000 loss. O $3.700 loss. o O so gain or ons O $3,700 gain 0 $9,000 gain. M Marwick Corporation issues 10%, 5 year bonds with a par value of $1,220,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%. What is the bond's issue (selling) price, assuming the following Present Value factors: Present Value of an Annuity (series of payments) 3.7908 7.7217 3.9927 8.1109 Present value of 1 (single sum) 0.6209 0.6139 0.6806 0.6756 Multiple Choice O $1,220,000 O $1.009.244 O B - 9 M DLL On July 1, Shady Creek Resort borrowed $300,000 cash by signing a 10-year, 10.5% installment note requiring equal payments each June 30 of $49,877. What amount of interest expense will be included in the first annual payment? Multiple Choice O s31,500 o $281,623 o $30,000 o 54987 $18,377 Prev 100 of 174 | Next 9 On January 1, a company issues bonds dated January 1 with a par value of $360,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $346,096. The journal entry to record the issuance of the bond is: Multiple Choice O Debit Cash $346,096; debit Discount on Bonds Payable $13,904; credit Bonds Payable $360,000. Debit Cash $346,096; debit Premium on Bonds Payable $13,904; credit Bonds Payable $360,000. Debit Cash $346,096, credit Bonds Payable $346,096. $13,904; credit Cash $373,904. Ot 9 M DOLL On January 1, a company issued and sold a $380,000, 6%, 10-year bond payable, and received proceeds of $375,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount The carrying value of the bonds immediately after the second interest payment is: Multiple Choice O $380,000 $379750. $375,500 o oo $374,750 Od 9 M DOLL

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