University:
College
Course:
College Accounting
Academic year:

2019
Views:

495

Pages:

16
Author:

larbiwxcvbn

ACCT 101 -Exam #4 -Chap 10 -12 Student ... ------------------------------ 1 . A bond traded at 102 ½ means that A. The bond pays 2.5% interest (B)rhe bond traded at $1,025 per $1,000 bond yo-q The market rate of interest is 2.5% D. The bonds were retired at $1,025 each E. The market rate of interest is 2 ½% above the contract rate 'f 'c.f. 2. The contract between the bond issuer and the bondholders,.which identifies the rights and obligations of the parties is called a(n): AIJebenture 410 (JYBond indenture C. Mortgage D. lnstallment note E. Mortgage contract p 3. What is t€Jebt ;=equity rati;)or a company with $700,000 in total liabilities and $3,500,000 in total �ity? \..hl20¾ 700.COC) • �--·---B. 5 -:::: 7..-0 c. $2,100,000 3SOO. D.2% E.. 5 2. ocx:) 4. When a bond sells at a premium: (1C)The contract rate is above the market rat� - �(.)J C.OY\ � M ¥ The contract rate is equal to the market rate C. The contract rate is below the market rate D, It means that the bond is a zero coupon bond E. The bond pays no interest _ (9-1...)l.- +ho.n f Ct � Name:. . . ACCT 101 - Fundamentals of Acct I Exam #4 - Chapters 10 � 12 . . . . • ·-FOLLOW DIRECTIONS. . . . ' ', . :' • • • . ,::·: . . ', . ,. • I •. :• :'· . . . . . . �GEO.QSE-FOU.R of the prob\egrs _fr.om_exam directions and _. ;p:{�p,aF,_�---��mple.te soiµt1ons Us-_ing good.format on the . -aµac.hed··':"ork�p,g p�p�rs. If you do m.ore than four, than ·· first fqtir w�U be graded. :9.µlyjl } e . • .• • ,. • ,.<. .} � .r ,._-,.,. . "I • .-. ·•, I� : '" •• • :, �• • ·. ::. _.,· • , • • • . • • , ;. .-,.. '. '•••'• •-J •: •. •. . •' • . . . . 34 Prepare journal entries for transactions as directed in exam and answer the questions: GENERAL JOURNAL PAGE_•__ 2 3 4 5 6 7 .B '9 1B 17 1B ·25 · •• ·. 27 26 29 • 29 ,: .... · 30 : 30 31 31 • � Cffi + After tr,e above transactions _are recorded, how many shares are issued? . • • I • SCOO:-+. IDC.P 2-4dt;·oco Aa. I • fnd.,C( ' . •