On January 1, 2018, Legion Company sold $200,000 of 10% ten-year bonds

1.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%

2.Tea Mill issues ￥1,000,000 face value, 6%, 5-year bonds payable on December 31, 2018. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Tea Mill uses the straight-line method of amortizing bond discount or premium.The entry made by Tea Mill to record issuance of the bonds payable at December 31, 2018, includes 选项： A:a debit to Cash of ￥1,000,000.; B:a debit to Discount on Bonds Payable of ￥30,000.; C:a credit to Bonds Payable of ￥970,000.; D:a credit to Bond Interest Payable of ￥30,000.

3.Tea Mill issues ￥1,000,000 face value, 6%, 5-year bonds payable on December 31, 2018. Interest is paid semiannually each June 30 and December 31. The bonds sell at a price of 97; Tea Mill uses the straight-line method of amortizing bond discount or premium.The entry made by Tea Mill to record issuance of the bonds payable at December 31, 2018, includes: 选项： A:A debit to Cash of ￥1,000,000.; B:A debit to Discount on Bonds Payable of ￥30,000.; C:A credit to Bonds Payable of ￥970,000.; D:A credit to Bond Interest Payable of ￥30,000.

4.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.

5.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.

6.Bonds with a face amount of $1,000,000 and a contractual interest rate of 8% are sold to yield 7.5%. The annual interest expense recorded for the bonds will be选项： A: $5,000; B:$40,000; C:$75,000; D:$80,000.

7.Golf sells bonds to friends and families to finance the acquisition of a driving range. On January 1, 20X0, Golf Is Great sells $3,000,000 in four-year, 5% bonds priced to yield 4% for $3,109,882. Interest is payable on June 30 and December 31 each year. The corporate year-end is December 31. Golf Is Great is a private corporation and the bonds are not publicly traded. As such, Golf Is Great may elect to use either the straight-line or effective interest method to amortize the premium.a. Effective period rate = 4%/2 = 2%Straight-line methodEffective interest methodDateInterest expenseInterest paidPremium amortizedAmortized costDateInterest expenseInterest paidPremium amortizedAmortized costJan. 1, 20X0$3,109,882Jan. 1, 20X0$3,109,882June 30, 20X0[填空1][填空2][填空3][填空4]June 30, 20X0[填空5][填空6][填空7][填空8]请按如下格式，复制至答题区域回答：填空1: 填空2: 填空3: 填空4: 填空5: 填空6: 填空7: 填空8:

8.2. 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.

9.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

10.When the effective interest method of amortization is used for bonds issued at a premium, the amount of interest payable for an interest period is calculated by multiplying the: 选项： A: Face value of the bonds at the beginning of the period by the contractual interest rate. B: Face value of the bonds at the beginning of the period by the effective interest rates. C: Carrying value of the bonds at the beginning of the period by the contractual interest rate. D: Carrying value of the bonds at the beginning of the period by the effective interest rates.

11.Which of the following statements is true in relationship to a company financing with debt rather than stock?（）选项： A:The principal amount must be repaid at the maturity of the bonds. B:Trading on equity means that the business earns less by investing borrowed funds than it pays in interest expense on bonds. C:Earnings per share will generally be higher when a company is financed with stock rather than debt. D:Interest expense is not tax-deductible while dividends are tax-deductible.

12.In 2018, a company using US GAAP made cash payments of $6 million for salaries, $2 million for interest expense, and $4 million for income taxes. Additional information for the company is provided in the table:2017 2018 Revenue 42 37 Cost of goods sold 18 16 Inventory 36 40 Accounts receivable 22 19 Accounts payable 14 12 Based only on the information given, the company’s operating cash flow for 2018 is closest to: 选项： A:A $6 million. B:B $10 million. C:C $14 million.

13.When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except A. Interest received on investments in bonds. B. Interest paid on the company’s bonds. C. Cash collected from customers. D. Cash dividends paid on the company’s stock.

14.Given an understanding of interest-rate risk, an existing fixed-interest investor in bonds would be affected in which of the following way if the market interest rates on bonds were to rise? 选项：A、 interest receipts from the bonds would rise; and the market price of the bond would riseB、 interest receipts from the bonds would fall; and the market price of the bond would fallC、 interest receipts from the bonds would be unaffected; and the market price of the bond would riseD、 interest receipts from the bonds would be unaffected; and the market price of the bond would fall

15.When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except A. Interest received on investments in bonds. B. Interest paid on the company’s bonds. C. Cash collected from customers. D. Cash dividends paid on the company’s stock.

16.When preparing the statement of cash flows, companies are required to report separately as operating cash flows all of the following except A. Cash collected from customers. B. Interest paid on the company's bonds. C. Interest received on investments in bonds. D. Cash dividends paid on the company's stock.

17.3. What are "zero-coupon bonds"? 选项： A:Bonds that pay the market rate of interest.; B:Bonds that are unsecured.; C:Bonds that do not pay interest.; D:Bonds that are sold at a premium.

18.When a company sells its bonds at less than face value, the effective interest rate is 选项： A、lower than the yield rate. B、higher than the contract interest rate. C、lower than the nominal rate D、higher than the market interest rate

19.______refers to the bond interest that is included in the actual price paid for short-term bond investment that has expired but has not been received. 选项： A、Bond receivable B、Interest payable C、Interest receivable D、Bond payable

20.An investor is concerned about interest rate risk. Which of the following three bonds （similar except for yield and maturity） has the least interest rate risk？ The bond with:

21.1. 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.

22.The price at which bonds sell is equal to the 选项： A、maturity value of the bonds plus the present value to investors of the future interest payments. B、sum of the future interest payments, minus the maturity value of the bonds. C、present value to investors of the future principal and interest payments. D、sum of the future interest, plus the maturity value of the bonds.

23.A Firm ABC bond has a 8 percent coupon rate and a 100 yuan face value. Interest is paid semiannually, and the bond has 6 years to maturity. If investors require a 10 percent yield, what is the bond’s value?