1 on december 1 martin company signed a 5000 3-month 6 note, Ask an Expert

Accounting

1. On December 1, Martin Company signed a $5,000, 3-month, 6% note payable, with the principle plus interest due on March 1 of the following year. What amount of interest expense is accrued at December 31 on the note? A.$300 B.$25 C.$50 D.$0 E.$75

2. The Discount on Bonds Payable account is:
A A contra liability
B A liability
C A contra expense
D A contra equity
E An expense

3. When a bond sells at a premium:
A The contract rate is equal to the market rate.
B The contract rate is above the market rate.
C It means that the bond is a zero coupon bond.
D The bond pays no interest.
E The contract rate is below the market rate.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9958930

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