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Use the following information for questions 83-86

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Use the following information for questions 83-86. Golden Company received proceeds of $94.250 on 10-year, 8% bonds issued on January 1, 2007. The bonds had a face value of $100,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Golden uses the straight-line method of amortization. 83. What is the amount of interest Golden must pay the bondholders in 2007? a. $7.540 b. $8,000 c. $8,575 d. $7,425 84. What is the amount of interest expense Golden will show with relation to these bonds for the year ended December 31, 2008? a. $8,000 b. $7,540 c. $8,575 d. $7,425 *85. What is the carrying value of the bonds on January 1, 2009? a. $100,000 b. $95,400 c. $98,850 d. $94,825 $ 86. Golden Company decided to redeem the bonds on January 1, 2009. What amount of gain , or loss would Golden report on its 2009 income statement a. $4,600 gain b. $5,600 gain C. $5,600 loss d. $4,600 loss 87 Bryce Company has $500,000 of bonds outstanding. The unamortized premium is $7.200. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? a. $2,200 gain b. $2,200 loss c. $5,000 gain d. $5,000 loss 88. The current carrying value of Jensen's $600,000 face value bonds is $597.750. If the bonds are retired at 102, what would be the amount Jensen would pay its bondholders? a. $597,750 b. $600,000 C. $603,000 d. $612.000 89. Lahey Corporation retires its $500,000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $518,725. The entry to record the redemption will include a a. credit of $18,725 to Loss on Bond Redemption b. debit of $18,725 to Premium on Bonds Payable. c. credit of $6,275 to Gain on Bond Redemption. d. debit of $25,000 to Premium on Bonds Payable. A $900,000 bond was retired at 103 when the carrying value of the bond was $933,000. The entry to record the retirement would include a a. gain on bond redemption of $27,000 b. loss on bond redemption of $6,000. c. loss on bond redemption of $27,000 d. gain on bond redemption of $6,000. 90. 91. If forty $1,000 convertible bonds with a carrying value of $46,000 are converted into 6,000 shares of $5 par value common stock, the journal entry to record the conversion is a. Bonds Payable 46,000 Common Stock 46,000 b. Bonds Payable 40,000 Premium on Bonds Payable 6,000 Common Stock 46,000 c. Bonds Payable 40,000 Premium on Bonds Payable 6,000 Common Stock 30.000 Paid-in Capital in Excess of Par 16.000 d. Bonds Payable 46,000 Discount on Bonds Payable 6,000 Common Stock 30,000 Paid-in Capital in Excess of Par 10,000