On September Year 1, Cobb Co. issued a note payable to National Bank i

1.At December 31, Year 1, a $1,200,000 note payable was included in Cobb Corp.'s liability account balances. The note is dated October 1, Year 1, bears interest at 15%, and is payable in three equal annual payments of $400,000. The first interest and principal payment was made on October 1, Year 2. In its December 31, Year 2 balance sheet, what amount should Cobb report as accrued interest payable for this note? 选项： A: $135,000 B: $90,000 C: $45,000 D: $30,000

2.During Year 2, Colt Co. experienced financial difficulties and is likely to default on a $1,000,000, 15%, 3-year note dated January 1, Year 1, payable to Cain National Bank. On December 31, Year 2, the bank agreed to settle the note and unpaid Year 2 interest of $150,000 for $820,000 cash payable on January 31, Year 3. What is the amount of gain, before income taxes, from the debt restructuring? 选项： A: $0 B: $150,000 C: $180,000 D: $330,000

3.3. On January 1, 20X0, A company issued a $200,000, interest bearing note, due on January 1, 20X1, in exchange for a computer system. Assume a December 31 year-end and that the company does not prepare interim statements. The 5% annual interest rate on the note, which approximates the market rate of interest for similar transactions. Which statement is correct?选项： A:At the issuance date, the company should Debit Note Payable 190,476.; B:At the issuance date, the company should Credit Note Payable 190,476.; C:At the issuance date, the company should Debit Note Payable 200,000.; D:At the issuance date, the company should Credit Note Payable 200,000.

4.2. On January 1, 20X0, A company issued a $200,000, non-interest bearing note, due on January 1, 20X1, in exchange for a computer system. Assume a December 31 year-end and that the company does not prepare interim statements. The Market rate of interest is 5%. Which statement is correct?选项： A:At the issuance date, the company should Debit Note Payable 190,476.; B:At the issuance date, the company should Credit Note Payable 190,476.; C:At the issuance date, the company should Debit Note Payable 200,000.; D:At the issuance date, the company should Credit Note Payable 200,000.

5.On March 1, 20X0, G company issued a $20,000, non-interest bearing note, due on March 1, 20X1, in exchange for a machine. The fair value of the machine is not easily determinable. The market rate of interest for similar transactions is 4%. G’s year-end is December 31. Which statement is correct? ( )选项： A: At the issuance date, the company should Debit Note Payable 19,231; B:At the issuance date, the company should Credit Note Payable 19,231.; C:At the issuance date, the company should Debit Note Payable 20,000.; D:At the issuance date, the company should Credit Note Payable 20,000.

6.1. Which of the following statements regarding notes payable issued at a 0% interest rate is true?选项： A:The issuer of the note will not recognize any interest expense.; B:A 0% interest rate indicates that the interest expense is recognized at the end of the term of the note payable.; C:Interest expense is calculated using market rates of similar debt instruments over the term of the note.; D:The note payable is recognized at face value on date of issuance.

7.Which of the following statements describes the relationship of interest expense related to bonds payable when a discount on bonds payable has been recorded using the effective interest method? 选项： A:Interest expense will be the same each year. B:Interest expense will decrease each year. C:Interest expense will increase by the same amount each year. D:Interest expense will increase by a larger amount each year.

8.The interest expense recorded on an interest payment date is increased选项： A:by the amortization of premium on bonds payable.; B:by the amortization of discount on bonds payable.; C:only if the bonds were sold at face value.; D: only if the market rate of interest is less than the stated rate of interest on that date.

9.On January 1, 2018, 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, 2018 in the amount of ______.选项： A:$8,850; B:$10,000; C:$10,620; D:$12,000

10.On April 1, Year 1, Saxe, Inc. purchased $200,000 face value, 9% U.S. Treasury Notes for $198,500, including accrued interest of $4,500. The notes mature July 1, Year 2, and pay interest semiannually on January 1 and July 1. Saxe uses the straight-line method of amortization. The notes were sold on December 1, Year 1 for $206,500, including accrued interest of $7,500. In its October 31, Year 1 balance sheet, the carrying amount of this investment should be: 选项： A: $194,000 B: $196,800 C: $197,200 D: $199,000

11.An annuity will pay eight annual payments of $ 100, with the first payment to be received one year from now. If the interest rate is 12 percent per year, what is the present value of this annuity（）选项： A、$ 556.38. B、$1377.57. C、$ 496.76.

12.Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective interest method to amortize bond premiums and discounts. The carrying value of the bonds on January 2 was $185,953. A journal entry was recorded for the first interest payment on June 30, debiting interest expense for $13,016 and crediting cash for $12,000. What is the annual stated interest rate for the debenture bonds? 选项： A: 6% B: 7% C: 12% D: 14%

13.The payment date of a Draft stating "Payable at 90 days after June 15" is ( ). 选项： A:September 12; B:September 13; C:September 14; D:September 15

14.An entity has a three-year note receivable of $100 000 issued on 1 July 20X2 with a carrying balance at inceptionof $95 026. The note carries an effective interest rate of 10 per cent; an 8 per cent interest coupon is paid on 30 June each year. At the end of the first year, the note is discovered to be ‘credit impaired’ with a lifetime expected credit loss of $10 000 at that date, resulting in a carrying balance of $86 529.Assuming conditions do not change before the end of the second year, what is the interest income for the year ended 30 June 20X4? 选项： A: $8000 B: $8653 C: $9503 D: $9653No option was selected. This is incorrect.

15.for services rendered. On both notes, interest is calculated on the outstanding principal balance at the annual rate of 3% and payable at maturity. The note from Hart Corp., made under customary trade terms, is due in nine months and the note from Maxx, Inc. is due in five years. The market interest rate for similar notes on December 31 was 8%. The compound interest factors to convert future values into present values at 8% follow:Present value of $1 due in nine months: 0.944Present value of $1 due in five years: 0.680At what amounts should these two notes receivable be reported in Jet's December 31 balance sheet? Hart Maxx 选项： A: $9,440 $6,800 B: $9,652 $7,820 C: $10,000 $6,800 D: $10,000 $7,820

16.An annuity will pay eight annual payments of $ 100, with the first payment to be received one year from now. If the interest rate is 12 percent per year, what is the present value of this annuity（） A. $ 556.38. B. $1377.57. C. $ 496.76.

17.A bank quotes a stated annual interest rate of 4.00%. If that rate is equal to an effective annual rate of 4.08%, then the bank is compounding interest选项： A:daily B:quarterly C:semi-annually

18.On December 31, Key Co. received two $10,000 non-interest-bearing notes from customers in exchange for services rendered. The note from Alpha Co., which is due in nine months, was made under customary trade terms, but the note from Omega Co., which is due in two years, was not. The market interest rate for both notes at the date of issuance is 8%. The present value of $1 due in nine months at 8% is .944. The present value of $1 due in two years at 8% is .857. At what amounts should these two notes receivable be reported in Key's December 31 balance sheet?

19.A 15-year mortgage will have larger monthly payments than a 30-year mortgage of the same amount and same interest rate.（）

20.On October 1, Year 1, Park Co. purchased 200 of the $1,000 face value, 10% bonds of Ott, Inc., for $220,000, including accrued interest of $5,000. The bonds, which mature on January 1, Year 8, pay interest semiannually on January 1 and July 1. Park used the straight-line method of amortization under U.S. GAAP and appropriately recorded the bonds as a long-term investment. On Park's December 31, Year 2 balance sheet, the bonds should be reported at: 选项： A: $215,000 B: $214,400 C: $214,200 D: $212,000

21.Country X uses the dollar as its currency and country Y uses the dinar. Country X’s expected inflation rate is 5% per year, compared to 2% per year in country Y. Country Y’s nominal interest rate is 4% per year and the current spot exchange rate between the two countries is 1·5000 dinar per $1.According to the four-way equivalence model, which of the following statements is/are true? (1) Country X’s nominal interest rate should be 7·06% per year (2) The future (expected) spot rate after one year should be 1·4571 dinar per $1 (3) Country X’s real interest rate should be higher than that of country Y选项： A:1 only; B:1 and 2 only; C:2 and 3 only; D:1, 2 and 3

22.This afternoon, you deposited $1,000 into a retirement savings account. The account will compound interest at 6 percent annually. You will not withdraw any principal or interest until you retire in forty years. Which one of the following statements is correct?选项： A:The interest you earn six years from now will equal the interest you earn ten years from now.; B:The interest amount you earn will double in value every year.; C:The total amount of interest you will earn will equal $1,000 × .06 × 40.; D:The present value of this investment is equal to $1,000.

23.A 15-year mortgage will have larger monthly payments than a 30-year mortgage of the same amount and same interest rate.（）选项： A:对 B:错