Solved

Match Each Transaction to Its Accounting Effect You May Use

Question 124

Matching

Match each transaction to its accounting effect You may use each choice more than once or not at all

Premises:
Issued a bond payable at a premium
Issued a bond payable at a discount
Issued a non-interest-bearing note at a discount
Paid periodic interest and amortized discount to interest expense
Paid periodic interest and amortized premium to interest expense
Paid interest on bond payable which was issued at par
Responses:
+ A and + L
+ A and – L
– A and – L and – SE
– A and – SE
– A and + L and – SE

Correct Answer:

Issued a bond payable at a premium
Issued a bond payable at a discount
Issued a non-interest-bearing note at a discount
Paid periodic interest and amortized discount to interest expense
Paid periodic interest and amortized premium to interest expense
Paid interest on bond payable which was issued at par
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