12- Multiple Choice Question 152
If the market interest rate is greater than the contractual interest rate, bonds will sell
at a discount. only after the stated interest rate is increased. at face value. at a premium. 13- Multiple Choice Question 158 The market interest rate is often called the coupon rate. contractual rate. stated rate. effective rate. 14- Multiple Choice Question 78
On October 1, Steve’ s Carpet Service borrows $ 250,000 from First National Bank on a 3-month, $ 250,000, 8 % note. The entry by Steve’ s Carpet Service to record payment of the note and accrued interest on January 1 is
Notes Payable 255,000 Cash 255,000 Notes Payable 250,000