On March 1, 2010, Darby Corporation sold 82 of its 9 percent, $1,000 bonds for a price of 96 plus accrued interest. The accrued interest amounted to $1,000 . If a balance sheet were to be prepared at the end of the day, March 1, 2010, the carrying value reported for the bonds payable would be
a. $82,000.
b. $78,720.
c. $79,540.
d. $77,900.
B
You might also like to view...
Which of the following is not a current trend in online content?
A. Americans continue to spend more on streaming music than downloaded music. B. Readership of newspapers in print form continues to exceed online readership. C. E-book sales growth slows. D. Explosive growth of the mobile platform accelerates the transition to digital content.
Answer the following statements true (T) or false (F)
1. Premium on Bonds Payable is additional Interest Expense of the company that issues the bond. 2. When a bond is matured, the carrying value always equals the face value. 3. The main reason companies retire bonds prior to their maturity date is to relieve the pressure of paying interest payments. 4. An alternative to calling the bonds is to purchase any available bonds in the open market at their current market price. 5. Callable bonds are bonds that the issuer may call and pay off at a specified price whenever the issuer wants.
Cost accounting is necessitated by
a. the high degree of conversion found in certain businesses. b. external reporting requirements for manufacturing companies. c. management's need to be aware of all production activities. d. management's need for information to be used for planning and controlling activities.
In the context of a survey, which of the following terms represents the span between the highest and lowest values?
A) Mean B) Median C) Mode D) Range E) Volatility