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Question 12. (TCO D) If bonds are issued between interest dates, the
entry on the books of the issuing corporation could include a
debit to Interest Payable.
credit to Interest Receivable.
credit to Interest Expense.
credit to Unearned Interest.
Question. 13. (TCO D) Feller Company issues $20,000,000 of 10-year,
9% bonds on March 1, 2010 at 97 plus accrued interest. The bonds are
dated January 1, 2010, and pay interest on June 30 and December 31.
What is the total cash received on the issue date?
$19,400,000
$20,450,000
$19,700,000
$19,100,000
Question. 14. (TCO D) A company issues $20,000,000, 7.8%, 20-year
bonds to yield 8% on January 1, 2010. Interest is paid on June 30 and
December 31. The proceeds from the bonds are $19,604,145. What is
the interest expense for 2011, using straight-line amortization?
$1,540,207
$1,560,000
$1,569,192
$1,579,793
Question 15. (TCO D) On January 1, Patterson, Inc. issued $5,000,000,
9% bonds for $4,695,000. The market rate of interest for these bonds is
10%. Interest is payable annually on December 31. Patterson uses the
effective-interest method of amortizing bond discount. At the end of the
first year, Patterson should report unamortized bond discount of