Solved

On January 1,2014,Zing Services Issued $165,000 of 6-Year Bonds with a Stated

Question 142

Multiple Choice

On January 1,2014,Zing Services issued $165,000 of 6-year bonds with a stated rate of 12%.The market rate at time of issue was 11%,so the bonds were issued with a premium and sold for $172,110.Zing uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Which of the following is the correct journal entry to record the first interest payment?


A) On January 1,2014,Zing Services issued $165,000 of 6-year bonds with a stated rate of 12%.The market rate at time of issue was 11%,so the bonds were issued with a premium and sold for $172,110.Zing uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Which of the following is the correct journal entry to record the first interest payment? A) B) C) D)
B) On January 1,2014,Zing Services issued $165,000 of 6-year bonds with a stated rate of 12%.The market rate at time of issue was 11%,so the bonds were issued with a premium and sold for $172,110.Zing uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Which of the following is the correct journal entry to record the first interest payment? A) B) C) D)
C) On January 1,2014,Zing Services issued $165,000 of 6-year bonds with a stated rate of 12%.The market rate at time of issue was 11%,so the bonds were issued with a premium and sold for $172,110.Zing uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Which of the following is the correct journal entry to record the first interest payment? A) B) C) D)
D) On January 1,2014,Zing Services issued $165,000 of 6-year bonds with a stated rate of 12%.The market rate at time of issue was 11%,so the bonds were issued with a premium and sold for $172,110.Zing uses the effective-interest method to amortize the bond premium.Semiannual interest payments are made on June 30 and December 31 of each year.Which of the following is the correct journal entry to record the first interest payment? A) B) C) D)

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q137: The debt to equity ratio of four

Q143: The principal amount of a bond is

Q144: On January 1, 2015, Finch Company issued

Q145: Using the present value tables, compute the

Q145: On January 1,2013,Diagem Services issued $140,000 of

Q146: The principal amount is $80,000, the stated

Q147: On January 1,2014,Zing Services issued $165,000 of

Q154: The United Way Payable account would normally

Q169: Compound interest means that interest is calculated

Q173: A stream of equal cash payments made

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents