lu at lace value an their face value, the carrying value (book value) When the b
ID: 2398413 • Letter: L
Question
lu at lace value an their face value, the carrying value (book value) When the bonds are sold (issued) for more th of the bonds is equal to A. Face Value B. Face Value plus the Discount on Bonds Payable 39. Face Value minus the Premium on Bonds Payable Face Value plus the Premium on Bonds Payable E. Face Value minus the Discount on Bonds payable 40. When 10,000 shares of S4 par value common stock are issued at $14 per share, Additional Paid-in Capital in Excess of Par is: Debited for $100,000 Credited for $140,000 Credited for $100,000 Credited for $40,000 A. B. C. D.Explanation / Answer
Answer to Question 39.
Option D is Correct.
Carrying Value is the Face Value of Bonds along with any unamortized Premium on Bonds Payable or Discount on Bonds.
Discount on Bonds Payable will reduce the Carrying Value of Bonds, whereas Premium on Bonds payable increases carrying value of bonds.
Where Bonds are issued at more than the face value, the Carrying value will be Face value plus the Premium on Bonds Payable.
Answer to Question 40.
Option C is Correct.
Par Value of Common Stock = $4
Issuance Price = $14
Additional paid-in Capital in Excess of Par = 10,000 * $10
Additional paid-in Capital in Excess of Par = $100,000
Since, Common Stock are issued at more than Face Value of Common Stock, the Additional paid-in Capital in Excess of Par will be credited.
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