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18 Bonds with a face value of $1,000 were issued for $920. Which ONE of the following would be recorded in the books of the issue of the bands? Discount on Bonds Payable of 580 Discount on Bonds Payabile of 51.000 Dincounton Bonds Payable of $920 Premium on Bonds Payable of $1.000 Premium on Bonds Payable of $920 Premium on Bonds Payable of $80 19 Lorien Company issued bonds with a coupon rate of 0% and a face amount of $100,000. These are zero-coupon bonds. The bands mature in 20 years. The market Interest rate for bonds with the same degree of riskiness is 7% compounded annually. These bonds were issued on January 1 of Year 1 Note: Round all your calculations to the nearest dollar. How much INTEREST EXPENSE should be exported for Yeni 5708 $1.000 55.191 57.000 20 On January 1, the company issued 15-year bonds with a face value of $100,000. The bond carry a coupon rate of percent and puldemi-annually. On the issue date, the market interest rate for bonds issued by companies with similar tilness a 10 percent compounded sammually. The lance price of the bonds was 534,625 Compute the net carrying value of the bonds on the books of the issuing company as of December 31 of year 1, immediately after the SECOND coupon interest payment is made 102.37 550.296360 354A99.40 0.6209 58439659 16 User Company leased computer equipment from Owner Company on January 1 of Year 1. The computer equipment has an expected useful life of 15 years with no expected salvage value. The terms of the lease require annual payments of $10,000 at the end of each year for 15 yuan with the first parent helng made on December 31 of Year 1. The interest rate used in computing the lease payments is 128 compounded annually. User Company is accounting for this lease capital lease Note: Round your calculations to the nearest dollar. Compute the TOTAL pente associated with this capital lease for variassuming that User Company uses straight-line depreciation. I $14541 $22.714 D510.000 512714 $15.67% $18,173 754451 17 The company has outstanding bonds payable with a total face value of 5100,000 Osby the company redeemed the bond pasting than the open market for a total of 5100,700. Which one of the following sould be reported at the time of the redemption of the bonds anaming that the bondhavan unamortized discount of $2000? Loon Band Rederation of $2.000 Ganent adepto 1.2.700 Bad Redemption 4.00 Band Pedemon 12700 Gabond Redecon 54.100 Bordado 12.00 13 You owe $500,000 on a mortgage loan. The loan is to be repaid in equal payments at the end of each MONTH for the next 30 years. The interest rate on the loan is 6.00%, compounded monthly. What is the amount of each of the monthly mortgage payments! $1,798,65 51816.22 $1,500.00 Ol $10.897.34 $18.000.00 14 On January 1 of Year, Tarati Company leased a track for a 9-year period under an atto lease and red to pay a use payment of $6,000 at the end of each year. The fint 56,000 payment will be made on December 51 of Year 1. Which one of the following recorded on the date of the SIONING of this use contract on January 1 of Year 17 I Le Lability of 6.000 Les Liability of $54.000 Deased Asset of $54.000 Leased Asset of 6.000 No aset or lability is recorded on the base siening dan 15 On January 1 of Your Kamili Company leased a truck for a year period under a cantalleste and agreed to pay an annual least payment of 36,000 at the end of each year. The interest rate associated with this capital lense is 12 compounded annually. The cath price of the trucks527385.On December 31 of year the first 54,000 payment was made as scheduled. Which ONE of the following is recorded upon the payment of the first $6.000 payment on December 31 of Year Interests of $2714 REDUCTION Laby $24.669 Expense of $6000 Expense of 53285 REDUCTION in Lely 35.000 12 The data below are for Skye Company. Total assets $10,000 Income tax expense 1,000 Accounts receivable 2,500 Total equity 6,500 Interest expense 400 Sales 15,000 Cost of goods sold 9,000 Accounts payable 1,200 Net income 1,500 What is Evie Company's TIMES INTEREST EARNED RATIO 56.25 B 3.75 5.25 7:25 04.75 11 The data below are for Evie Company. Total assets $10,000 Income before interest and taxes 1,000 Total liabilities 5,500 Total equity 4,500 Interest expense 400 Sales 15,000 Cost of goods sold 9,000 Accounts payable 1,200 Accounts receivable 1,500 What is Evie Company's DEBT RATIO? 55.0% 50.0% 80.0% 45.0% 122.09 Lotion Company issued bonds with a coupon rate of 8% and a face amount of $7,500. The bonds mature in 25 years. Bond interest is paid at the end of each year. The market interest rate for bonds with the same degree of riskiness is 14 compounded annually. What is the issuance price of these bonds? 57.500 $4407 54395 $12,304 58,374 10 On January 1 Year 1 Mellie Company issued a $25,000, 12 bond, at face salue. Interest is paid annually each fanuary 1, so the first coupon payment was stade onunuary 1 of According to the principles of accrual accounting, how much INTEREST EXPENSE is reported in YEARTS 13.000 200 200 You owe $10,000 on a loan. The loan is to be repaid in egaal payments at the end of each year for the next five years. The interest rate on the loan is 8% What is the amount of each of the annual loan payments! $1.047 31.705 $2.505 51547 The fundamental measure of a company's liquidity is called the N tres interest-earned ratio operating leverage ratio e current ratio detra t-to-equity ratio Only1 Brandon Han signed a 50-year one mortgage contract in the amount of $500.000 Totten the compounded mostly mang the monthly payments 51.493. The first payment is due on July and they put them out of TEST EXPENSE 10 August the second most 103 Hot 40554 You will receive $1.000 at the end of 10 years. How much would you accept now in exchange for your right to receive $1,000 at the end of 20 yun? You can cam 12% [COMPOUNDED SEMI-ANNUALLY) on any investments you make US10 101 $3,126 C3.201 335 $36786 3312 15530 25 You will receive $1,000 at the end of 11 years. How much would you accept now in exchange for your right to receive 51,000 at the end of 11 yan? You can on any investments you make El 17913 870 $535 : $14.972 5527 7.87 SIR 01 54231 ch Started on Nov 04 at 04:27 You deposit $1,000 in a bank account at the beginning of Year 1. How much will be in the account after five years at the end of Year 57 The interest rate on the account is 8% compounded annually 55,857 $3.993 $6.463 $9.549 5681 3147 31468 5677

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