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Chapter 10: Long-Term Liabilities
True / False
1. Discount on Bonds Payable is classified as a current liability.

a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.10-01 - LO: 10-01
KEYWORDS: Bloom's: Remembering
2. All liabilities that are not classified as current liabilities are classified as long-term.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
3. Bonds are generally issued in denominations of $1,000.

a. True
b. False
ANSWER: True
DIFFICULTY: Easy
4. Serial bonds are unique because the interest is paid as a series of daily payments.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
5. Bonds are typically issued in denominations of $10,000.

a. True
b. False
ANSWER: False
DIFFICULTY: Easy
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
6. If Tanner Company becomes less creditworthy, the market price of its bonds will decline.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
KEYWORDS: Bloom's: Understanding
7. Debenture bonds are backed by specific collateral of the issuing company.

a. True
b. False
ANSWER: False
DIFFICULTY: Easy
8. Convertible bonds normally sell at a higher price than non-convertible bonds.

a. True
b. False
ANSWER: True
DIFFICULTY: Easy
9. If an investor has the right to retire the bonds, they are referred to as callable.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
10. Callable bonds may be retired by the issuer before their specified due date.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
11. The most obvious risk to bond investors is that a company will fail and be unable to pay its debts.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
12. The face rate is also called the nominal or stated rate.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
13. A bond issue price is the present value of the cash flows that the bond will produce.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
14. The issue price of a bond is always present valued using the market rate of interest.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
15. When the market rate of interest is less than the face rate, then the bond issue will be sold at a discount.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
16. The excess of the face value of bonds over the issue price is known as a premium.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
17. The effective interest rate method of amortization amortizes the discount or premium in a manner that produces a
constant amount of interest expense from period to period.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
18. The interest rate used to calculate interest expense in the effective interest method of amortization is equal to the
market rate of interest at the time the bonds are issued.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
19. The amortization of bond discount increases the effective interest expense incurred each period for the issuer while
amortization of bond premium decreases it.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
20. When a bond is issued at a discount, the interest expense each year is less than the cash payment for interest.
a. True
b. False
ANSWER: False
DIFFICULTY: Moderate
21. The sum of the carrying value and the redemption price at the time bonds are redeemed results in the gain or loss on
redemption.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
LEARNING OBJECTIVES: FACC.PONO.13.10-06 - LO:10-06
22. When a bond issue is retired early, the amount of unamortized discount or premium is not considered in the
calculation of a gain or loss.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
23. In an operating lease, the lessee acquires the right to use an asset for only a limited period of time.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
24. A lease is accounted for as a capital lease if the lease term is 75% or more of the property's economic life.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
25. When a lease is classified as an operating lease, the lease liability should be presented on the balance sheet of the
lessee.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
26. IFRS typically uses a more “rule-based” approach than U.S. GAAP.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
27. In general, the international accounting standards provide lease criteria that are similar to the U.S. standards.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
28. The accounting for leases is an excellent example of the differences in how U.S. and IFRS accounting standards are
applied.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
29. The terms of a lease can only be structured in one way to meet the lessor and lessee and satisfy accounting standards.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
30. In an operating lease, the lessee is not required to record the right to use the property as an asset or to record the
obligation for payments as a liability.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
31. In an operating lease, the lessee has acquired sufficient rights of ownership and control of the property to be
considered its owner.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
32. If the lease term is 75% or more of the property’s economic life, the lease agreement should be accounted for as an
operating lease.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
33. The asset leased under an operating lease requires the lessee to record depreciation expense.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
34. An investor views a high debt-to-equity ratio and a low times interest earned as a favorable sign of a company’s
abilities to meet its long-term obligations.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
35. Long-term liabilities are a component of the “capital structure” of a company.

a. True
b. False
ANSWER: True
DIFFICULTY: Easy
36. The debt-to-equity ratio is defined as total long-term liabilities divided by total stockholders' equity.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
37. Most investors would prefer to see equity rather than debt on the balance sheet.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
38. Stock investors view equity as a claim against the company that must be satisfied before they get a return on their
money.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
39. All changes in long-term liabilities are reflected in the financing activities category of the statement of cash flows.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
40. Most long-term liabilities are related to a firm’s investing activities.

a. True
b. False
ANSWER: False
DIFFICULTY: Easy
41. The change in the Deferred Taxes account is reflected in the Operating Activities category of the statement of cash
flows.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
42. [APPENDIX] Deferred tax is an amount that reconciles the differences between the income for financial purposes
with the income reported for tax purposes. In most cases, it is a long-term liability.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
43. [APPENDIX] A permanent difference with respect to taxes is a difference that affects the tax records but not the
accounting records, or vice versa.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
44. [APPENDIX] Temporary differences occur when an item affects both book and tax calculations but not in the same
time period.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
45. [APPENDIX] The Deferred Tax account should reflect permanent differences but not items that are temporary
differences between book accounting and tax reporting.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Multiple Choice
46. The current portion of long-term debt is a balance sheet item for Flavorful Products Company. How would it most
likely be classified on the balance sheet?
a. Current liability
b. Long-term liability
c. Current asset
d. Long-term liability
ANSWER: a
DIFFICULTY: Easy
KEYWORDS: Bloom's: Applying
47. A ten-year lease obligation appears on the balance sheet of Generic Products Company. How would it most likely be
classified on the balance sheet?
a. Long-term liability
b. Current asset
c. Long-term asset
d. Contra-liability
ANSWER: a
DIFFICULTY: Easy
48. Rent owed to the landlord is a balance sheet item for Generic Products Company. How would it most likely be
c. Current asset
d. Owners’ equity
ANSWER: a
DIFFICULTY: Easy
49. Which of the following statements is true with respect to long-term liabilities?
a. They are obligations that will be satisfied within one year.
b. An account payable is a good example of a long-term liability because it is interest-bearing.
c. Long-term liabilities include bonds, other long-term liabilities and deferred income taxes.
d. Accrued expenses are considered to be long-term liabilities.
ANSWER: c
DIFFICULTY: Easy
50. Which of the following items should not appear in the long-term liability section of the balance sheet?
a. Accrued income taxes
b. Deferred income taxes
c. Bonds payable
d. Pension obligations
ANSWER: a
DIFFICULTY: Easy
51. A convertible bond is one where

a. the issuer can convert from a fixed interest rate to a floating one.
b. the issuer can convert it from long-term to short-term.
c. the issuer can retire the bond before its specified due date.
d. the holder can convert the bond into common stock at a future time.
ANSWER: d
DIFFICULTY: Easy
52. Irwin, Inc. issued $41,000,000 of bonds. Assuming the most common denomination of bonds, the number of bonds
sold was
a. 41,000,000
b. 410,000.
c. 4,100,000.
d. 41,000
ANSWER: d
KEYWORDS: Bloom's: Analyzing
53. Which of the following statements regarding bonds payable is true?

a. Generally, bonds are issued in denominations of $100.
b. When an issuing company's bonds are traded in the "secondary" market, the company will receive part of the
proceeds when the bonds are sold from the first purchaser to the second purchaser.
c. A debenture bond is backed by specific assets of the issuing company.
d. Most bonds are term bonds, meaning that the entire principal amount will mature on a single date.
ANSWER: d
DIFFICULTY: Easy
54. If a company's bonds are callable,
a. the investor or buyer of the bonds has the right to retire the bonds.
b. the issuing company is likely to retire the bonds before maturity if the bonds are paying 9% interest while the
market rate of interest is 6%.
c. the bonds are never allowed to remain outstanding until the maturity date.
d. the investor never knows what the redemption price will be until the bonds are actually called.
ANSWER: b
55. Convertible bonds are attractive to investors because

a. they usually carry a higher rate of interest than non-convertible bonds.
b. they carry a convertible interest rate that can be increased when the prime rate of interest increases.
c. they can be converted into stock at the issuer’s option.
d. the issuing company cannot retire the bonds before maturity.
ANSWER: c
DIFFICULTY: Easy
56. Which of the following statements regarding serial bonds is true?

a. They are likely to be issued by food companies.
b. They have shorter lives than term bonds.
c. They are strongly backed by the issuer's collateral.
d. The bonds do not all mature on the same date.
ANSWER: d
DIFFICULTY: Easy
57. Bonds are a popular source of financing because

a. bond interest expense is deductible for tax purposes, while dividends paid on stock are not.
b. financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of
stock.
c. a company having cash flow problems can postpone payment of interest to bondholders.
d. the bondholders can always convert their bonds into stock if they choose.
ANSWER: a
58. On January 2, 2016, Roof Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay
interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. At the maturity date, besides an
interest payment, Roof Master would repay the bondholders
a. $574,540.
b. $520,000.
c. $500,000.
d. only the last interest payment.
ANSWER: c
DIFFICULTY: Easy
59. When bonds are issued by a company, the accounting entry shows an
a. increase in liabilities and a decrease in stockholders’ equity.
b. increase in liabilities and an increase in stockholders’ equity.
c. increase in assets and an increase in liabilities.
d. increase in assets and an increase in stockholders’ equity.
ANSWER: c
DIFFICULTY: Easy
60. Bonds in the amount of $100,000 and a life of 10 years were issued by the Focus Company. If the face rate is 6% and
interest is paid semiannually, what would be the total amount of interest paid over the life of the bonds?
a. $60,000
b. $120,000
c. $30,000
d. $6,000
ANSWER: a
RATIONALE: $100,000 × .06 or 6% = $6,000 (Interest for one year)
$6,000 × 10 years = $60,000 (Interest over the life of the bonds)
61. When determining the amount of interest to be paid on a bond, which of the following information is not necessary?
a. The face amount of the bonds
b. The selling price of the bonds
c. The face rate of interest on the bonds
d. The length of the interest period, annually or semiannually
ANSWER: b
DIFFICULTY: Easy
62. Bennington Corp. issued a $40,000, 10-year bond at the face rate of 8%, paid semiannually. How much cash will the
bond investors receive at the end of the first interest period?
a. $800
b. $1,600
c. $3,200
d. $4,000
ANSWER: b
63. Which of the following statements is correct?

a. Bonds are issued at a price that reflects the stated rate of interest on the day the bond is purchased.
b. If the face rate of interest on a bond is not equal to the market rate of interest, then the company desiring to
issue the bonds must reprint its bond certificates.
c. The actual issue price of a bond represents the present value of all future cash flows related to the bond.
d. The market rate of interest has no bearing on the selling price of the bonds.
ANSWER: c
64. The bond issue price is determined by calculating the

a. present value of the stream of interest payments and the future value of the maturity amount.
b. future value of the stream of interest payments and the future value of the maturity amount.
c. future value of the stream of interest payments and the present value of the maturity amount.
d. present value of the stream of interest payments and the present value of the maturity amount.
ANSWER: d
DIFFICULTY: Easy
65. Fox Chapel Company wishes to issue $400,000 of 5-year, 6% bonds, with interest paid annually at the end of the year.
The market rate of interest is currently 5%. What information is needed in order to determine the selling price?
a. The life of the bonds, the market rate of interest, the bond rating, and the face amount of the bonds.
b. The face amount of the bonds, the stated rate of interest, the market rate of interest, and the bond life.
c. The face amount of the bonds, the stated rate of interest, the market rate of interest, and the bond life.
d. The face amount of the bonds, the market rate of interest, the purpose of the issue, and the bond life.
ANSWER: c
DIFFICULTY: Easy
66. Which of the following statements about bond accounting under the effective interest method is correct?
a. The cash interest paid is calculated as the bond face value × the effective rate.
b. The interest expense is calculated as the carrying value × the effective rate.
c. The difference between the cash interest paid and the interest expense is added to the carrying value of the
bonds if bonds were sold at a premium.
d. The difference between the interest expense and the interest paid is deducted from the carrying value of the
bonds if bonds were sold at a discount.
ANSWER: b
67. Which of the following terms does not describe an interest rate used to calculate the interest expense on the income
statement?
a. Nominal rate
b. Market rate
c. Effective rate
d. Yield rate
ANSWER: a
68. Use the information provided in the time value of money tables (Tables 9-1 through 9-4) in the text to answer the
question that follows.
Global Company issued $1,000,000, 8%, 7 year bonds, interest payable semiannually. The market rate of interest was 6%.
The issuance price of the bonds is
a. $1,111,560
b. $1,000,000
c. $1,151,480
d. $1,112,840
ANSWER: d
69. All of the following refer to the face rate of interest on a bond except:
a. stated rate
b. effective rate
c. nominal rate
d. coupon rate
ANSWER: b
70. Endeavor Company issued 20-year bonds with a coupon rate of 6% when the market rate of interest was 9%. This
means that the bonds were issued
a. at a premium.
b. at a discount.
c. at the face value.
d. with an additional 3 years of interest.
ANSWER: b
71. Flagg Company issued $500,000 of bonds for $498,351, Interest is paid semiannually. The bond markets and the
financial press are likely to state the bond issue price as
a. 498.35.
b. 100.00.
c. 99.67.
d. 49.84.
ANSWER: c
72. If bonds are issued at 101.25, this means that

a. a $1,000 bond sold for $101.25.
b. the bonds sold at a discount.
c. a $1,000 bond sold for $1,012.50.
d. the bond rate of interest is 10.13% of the market rate of interest.
ANSWER: c
DIFFICULTY: Easy
73. When bonds are sold for less than the face amount, this means that the
a. maturity value will be less than the face amount.
b. maturity value will be greater than the face amount.
c. bonds are sold at a premium.
d. face rate of interest is less than the market rate of interest.
ANSWER: d
DIFFICULTY: Easy
74. Which of the following terms does not describe the interest rate printed on the bond certificate?
a. Coupon rate
b. Effective rate
c. Face rate
d. Stated rate
ANSWER: b
DIFFICULTY: Easy
75. Which of the following trends can be unfavorable from the viewpoint of a bondholder?
a. The issuing company’s debt ratio is steadily declining.
b. The issuing company’s interest coverage ratio is steadily rising.
c. Market interest rates are steadily rising.
d. The issuing company’s net cash flow from operating activities is steadily increasing.
ANSWER: c
76. On the issuance date, the Bonds Payable account had a balance of $50,000,000 and Premium on Bonds Payable had a
balance of $1,000,000. What was the issue price of the bonds?
a. $50,000,000
b. $49,000,000
c. $51,000,000
d. Unable to determine from the information given
ANSWER: c
DIFFICULTY: Easy
77. The Discount on Bonds Payable account is shown on the balance sheet as
a. an asset.
b. an expense.
c. a long-term liability.
d. a contra long-term liability.
ANSWER: d
DIFFICULTY: Easy
78. The Premium on Bonds Payable account is shown on the balance sheet as
a. a contra asset.
b. a reduction of an expense.
c. an addition to a long-term liability.
d. a subtraction from a long-term liability.
ANSWER: c
DIFFICULTY: Easy
79. Bonds are sold at a premium if the

a. issuing company has a better reputation than other companies in the same business.
b. market rate of interest was less than the face rate at the time of issue.
c. market rate of interest was more than the face rate at the time of issue.
d. company will have to pay a premium to retire the bonds.
ANSWER: b
DIFFICULTY: Easy
80. Churchill Company planned to raise $100,000 by issuing bonds. The bond certificates were printed bearing an interest
rate of 8%, which was equal to the market rate of interest. However, before the bonds could be issued, economic
conditions forced the market rate up to 9%. If the life of the bonds is 6 years and interest is paid annually on December
31, how much will Churchill receive from the sale of the bonds?
a. Exactly $100,000 because Churchill Company would still pay interest at the face rate of 8%.
b. Less than $100,000 because the market rate of interest at 9% was more than the face rate.
c. Greater than $100,000 because the face rate of interest at 8% was less than the market rate.
d. The bonds would not be sold at all; Churchill Company would have the certificates reprinted bearing the
market rate of 9%.
ANSWER: b
81. When will bonds sell at a discount?
a. The credit standing of the issuing company is not as good as other companies in a similar line of business.
b. The face rate of interest is less than the market rate of interest at the time of issue.
c. The face rate of interest is more than the market rate of interest at the time of issue.
d. The issuing company will be able to retire the bonds at less than face at maturity.
ANSWER: b
DIFFICULTY: Easy
82. Discount on Bonds Payable is a balance sheet item for Covington Products Company. How would it most likely be
c. Current asset
d. Contra-liability
ANSWER: d
DIFFICULTY: Easy
83. Premium on Bonds Payable is a balance sheet item for Ohio Products Company. How would it most likely be
a. An increase to a long-term liability
b. Revenue
c. Long-term asset
d. Contra liability
ANSWER: a
DIFFICULTY: Easy
84. Weather Corp. issued 10-year, 8%, $100,000 bonds paying interest on an annual basis, at a $5,200 premium. Which
one of the following statements is true?
a. Weather’s annual interest expense on the bonds will be greater than the amount of interest payments to
bondholders each year.
b. Weather’s annual interest expense on the bonds will be less than the amount of interest payments to
bondholders each year.
c. Weather will receive $94,800 as the issue price.
d. The cash paid to bondholders will be $520 each interest period.
ANSWER: b
85. With the effective interest method of amortization, the amortization of bond discount results in a(n)
a. increase in interest expense.
b. decrease of stockholders’ equity.
c. increase in stockholders’ equity.
d. decrease in interest expense.
ANSWER: a
86. With the effective interest method of amortization, the amortization of bond premium results in a(n)
a. increase in stockholders’ equity.
b. no change in stockholders’ equity.
c. increase in interest expense.
d. decrease in interest expense.
ANSWER: d
87. On January 2, 2016, Wynn Corporation sold $750,000 of bonds for $745,000. The bonds will mature in 10 years and
pay interest annually on December 31. Wynn properly recorded the payment of interest and amortization of the discount
using the effective interest method. Which of the following statements is true about the carrying value of the bonds and/or
the unamortized discount at the end of 2016?
a. The carrying value will be less than $745,000.
b. The carrying value will be $745,000.
c. The carrying value will be greater than $745,000.
d. The unamortized premium will be less than $5,000.
ANSWER: c
88. In 2016, Aspinwall Company issued $200,000 of bonds for $175,000. If the face rate of interest was 9% and the
effective rate of interest was 7.99%, how would Aspinwall calculate the interest expense for the first year on the bonds
using the effective interest method?
a. $175,000 × 7.99%
b. $175,000 × 9%
c. $10,000 × 7.99%
d. $10,000 × 9%
ANSWER: b
89. The result of using the effective interest method of amortization of discount on bonds is that the
a. interest expense for each amortization period is constant.
b. effective interest rate for each amortization period is constant.
c. amount of interest expense decreases each period.
d. cash interest payment is greater than the interest expense.
ANSWER: b
90. If bonds were initially issued at a premium, the carrying value of the bonds on the issuer's books will
a. decrease as the bonds approach their maturity date.
b. increase as the bonds approach their maturity date.
c. remain constant throughout the bonds’ life.
d. fluctuate throughout the bonds’ life.
ANSWER: a
91. If bonds were initially issued at a discount, the interest expense on the bonds calculated using the effective interest
method will
a. decrease as the bonds approach their maturity date.
b. increase as the bonds approach their maturity date.
c. remain constant throughout the bonds’ life.
d. fluctuate throughout the bonds’ life.
ANSWER: b
92. Under the effective interest method, the cash paid on each interest payment date will
a. decrease if bonds are issued at a premium.
b. increase if bonds are issued at a premium.
c. remain constant regardless of the issuance price.
d. increase if bonds are issued at a discount.
ANSWER: c
93. On January 1, 2016, Chain, Inc. issued $400,000, 10-year, 10% bonds for $354,200. The bonds pay interest on June
30 and December 31. The market rate is 12%. The interest expense on the bonds at June 30, 2016, is
a. $20,000
b. $24,000
c. $21,252
d. $17,710
ANSWER: c
94. On January 1, 2016, Sharpsburg, Inc. issued $400,000, 10-year, 10% bonds for $354,200. The bonds pay interest on
June 30 and December 31. The market rate is 12%. What is the carrying value of the bonds after the first interest payment
is made on June 30, 2016?
a. $352,960
b. $354,200
c. $355,452
d. $400,000
ANSWER: c
June 30 and December 31. The market rate is 12%. The cash payment on June 30, 2016, is
a. $20,000.
b. $21,200.
c. $24,000.
d. $17,710.
ANSWER: a
June 30 and December 31. The market rate is 12%. What is the carrying value of the bonds at the end of the ten years?
a. $400,000
b. $480,000
c. $380,000
d. $354,200
ANSWER: a
97. On January 2, 2016, Garage Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay
interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. The interest expense on the bonds at
June 30, 2016, is
a. $2,764.
b. $17,236.
c. $20,000.
d. $22,764.
ANSWER: b
98. On January 2, 2016, Hi-Tech Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay
interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. The annual cash payment (paid in
semiannual payments) on the bonds is
a. $40,000.
b. $30,000.
c. $20,000.
d. $15,000.
ANSWER: a
99. On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay
interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the
bonds after the first interest payment is made on June 30, 2016?
a. $574,540
b. $571,776
c. $568,920
d. $500,000
ANSWER: b
100. On January 2, 2016, Lawn Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay
interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the
bonds at the end of ten years before the final maturity payment is made?
a. $574,540
b. $525,000
c. $500,000
d. $425,460
ANSWER: c
101. Which of the following statements regarding amortization is true?

a. Amortization of the premium causes the premium on bonds payable account to increase.
b. Amortization of the premium causes the amount of interest expense to increase.
c. Cash interest payments on bonds equals interest expense on the income statement when there is amortization
of bond premium.
d. Amortization of premium continues over the life of the bond until the balance in the account is reduced to
zero.
ANSWER: d
102. Amortization of bond discount results in a(n)

a. decrease of the bonds payable account.
b. decrease of stockholders’ equity.
c. increase of stockholders’ equity.
d. decrease in the cash account.
ANSWER: b
103. Amortization of bond premium results in a(n)

a. decrease of the carrying value of bonds.
b. no change in stockholders’ equity.
c. increase in interest expense.
d. decrease in the cash account.
ANSWER: a
104. Neville Company issued $100,000 of 6%, 10 year bonds when the market rate of interest was 5%. The proceeds from
this bond issue were $107,732. Using the effective interest method of amortization, which of the following statements is
true? Assume interest is paid annually.
a. Interest payments to bondholders each period will be $6,464.
b. Interest payments to bondholders each period will be $5,000.
c. Amortization of the premium for the first interest period will be $1,226.
d. Amortization of the premium for the first interest period will be $613.
ANSWER: d
105. Because of changing market conditions, Friendly Corporation made the decision to redeem $300,000 of its bonds
prior to maturity. The bonds had been issued at a discount and the balance in the discount account at the time of
redemption was $15,000. The corporation's bond certificates indicated that the bonds could be retired early at 103.
Friendly’s retirement of the bonds would result in a(n)
a. loss of $24,000.
b. gain of $6,000.
c. decrease in owners’ equity of $9,000.
d. increase in assets of $15,000.
ANSWER: a
106. Which of the following statements is true with regard to early retirement of bonds?
a. If the carrying value of the bonds is higher than the redemption price, the issuing firm must record a loss.
b. Firms always find it advantageous to retire bonds issued at lower rates with bonds issued at higher rates.
c. It is always advantageous to carry out early retirement for bonds issued at a premium but not for bonds issued
at a discount.
d. Any gain or loss resulting from early retirement of bonds would appear on the income statement of the issuing
company.
ANSWER: d
DIFFICULTY: Easy
107. A gain on bond redemption
a. is considered unusual and infrequent.
b. should be treated as part of operating income.
c. decreases a company’s income.
d. is always included when predicting a company’s future income.
ANSWER: b
DIFFICULTY: Easy
108. Shuttle Master Airlines has leased an aircraft from Streamline Aircraft Company. The annual payments are
$1,000,000 and the life of the lease is 18 years. It is estimated that the useful life of the aircraft is 20 years. How would
Shuttle Master Airlines record the acquisition of the aircraft? The effective rate of interest is 9%.
a. The company would not record the aircraft as an asset but would record rent expense of $1,000,000 per year
for 18 years.
b. The company would not record the aircraft as an asset but would record rent expense of $900,000 per year for
20 years.
c. The aircraft would be recorded as an asset with a cost of $8,756,000.
d. The aircraft would be recorded as an asset with a cost of $9,129,000.
ANSWER: c
109. Which of the following statements regarding leases is false?

a. Lease agreements are a popular form of financing the purchase of assets because leases do not require a large
initial outlay of cash.
b. Accounting recognizes two types of leases—operating and capital leases.
c. If a lessor classifies a lease as a capital lease, then the lessee records a lease liability on its balance sheet.
d. If a lease is classified as an operating lease, the lessee records a lease liability on its balance sheet.
ANSWER: d
DIFFICULTY: Easy
110. Which of the following lease conditions would result in a capital lease to the lessee?
a. The lessee will return the property to the lessor at the end of the lease term.
b. The lessee can purchase the property for $1 at the end of the lease term.
c. The fair market value of the property at the inception of the lease is $18,000; the present value of the
minimum lease payments is $15,977.
d. The lease term is 70% of the property's economic life.
ANSWER: b
DIFFICULTY: Easy
111. Surplus Mining Company has leased a machine from Craft Machinery Company. The annual payments are $6,000
and the life of the lease is 8 years. It is estimated that the useful life of the machine is 9 years. How would Surplus Mining
record the acquisition of the machine?
a. The machine would be recorded as an asset with a cost of $48,000.
b. The company would not record the machine as an asset but would record rent expense of $6,000 per year.
c. The machine would be recorded as an asset, at the present value of the annual cash payments, $6,000 for 8
years.
d. The machine would be recorded as an asset, at the present value of the annual cash payments, $6,000 for 9
years.
ANSWER: c
112. Which of the following accounts would not appear on the balance sheet of a lessee company recording a capital
lease?
a. Accumulated depreciation on the leased asset
b. Lease obligation in the current liability section
c. Lease obligation in the long-term liability section
d. Rent expense on the income statement
ANSWER: d
DIFFICULTY: Easy
113. Happy Corporation leased a building from Sensor Company. The 10-year lease is recorded as a capital lease. The
annual payments are $10,000 and the recorded cost of the asset is $67,100. The straight-line method is used to calculate
depreciation. Which of the following statements is true?
a. Depreciation expense of $6,710 will be recorded each year.
b. Depreciation expense of $10,000 will be recorded each year.
c. No depreciation expense will be recorded by Happy Corporation.
d. No interest expense will be recorded by Happy Corporation.
ANSWER: a
114. All of the following statements are true except:
a. The criteria to determine whether a lease contract should be considered a capital lease are applied in a more
rigid way under U.S. GAAP than IFRS.
b. The criteria to determine whether a lease contract should be considered a capital lease are applied in a more
rigid way under IFRS than U.S. GAAP.
c. The lease criteria under IFRS are to be used as guidelines rather than rules.
d. IFRS requires more accounting judgment than U.S. GAAP in the determination of whether a lease is classified
as an operating lease or a capital lease.
ANSWER: b
DIFFICULTY: Easy
115. The current balance sheet of Blawnox Inc. reports total assets of $20 million, total liabilities of $2 million, and
owners' equity of $18 million. Blawnox Inc. is considering several financing possibilities in order to expand operations. If
Blawnox Inc.’s owner invests an additional $2 million to finance the expansion, the debt to equity ratio will
a. stay the same
b. decrease
c. increase
d. cannot be determined from this information.
ANSWER: b
116. The current balance sheet of Blawnox Inc. reports total assets of $20 million, total liabilities of $2 million, and
owners' equity of $18 million. Blawnox Inc. is considering several financing possibilities in order to expand
operations. What is the additional amount that Blawnox Inc. can borrow and not exceed a debt to equity ratio of 0.3?
a. $5.4 million
b. $3.4 million
c. $5.5 million
d. $4.0 million
ANSWER: b
117. Line Corporation's balance sheet showed the following amounts for their liability and stockholders’ equity accounts:
Current Liabilities, $5,000; Bonds Payable, $1,500; Lease Obligations, $2,000; and Deferred Income Taxes, $300. Total
stockholders' equity was $6,000. The debt-to-equity ratio is
a. 0.63
b. 0.83
c. 1.42
d. 1.47
ANSWER: d
RATIONALE: $5,000 (Current Liabilities) + $1,500 (Bonds Payable) + $2,000 (Lease Obligations) + $300
(Deferred Income Taxes)/$6,000 (Total Stockholders’ Equity)
$8,800/$6,000 = 1.47
118. One way analysts measure the ability of a company to meet its obligations is to calculate the times interest earned
ratio for any outstanding debt the company may have. For Tempo Solutions Corporation, $10,000 of bonds paying 6.5%
annually is outstanding. Income before interest and taxes is $7,000. How would Tempo Solutions Corporation calculate
the times interest earned ratio?
a. Income before interest and taxes divided by the interest expense.
b. Income before interest and taxes divided by carrying value of the bonds outstanding.
c. Income before interest and taxes divided by the face rate on bonds.
d. Face amount of bonds divided by income before interest and taxes.
ANSWER: a
DIFFICULTY: Easy
119. Tampa Corporation's balance sheet showed the following amounts for their liabilities and stockholders’ equity
accounts: Current Liabilities, $20,000; Bonds Payable, $60,000; Lease Obligations, $12,000; and Deferred Income Taxes,
$2,000. Total stockholders' equity was $42,000. The debt-to-equity ratio is
a. 0.45
b. 0.58
c. 1.76
d. 2.24
ANSWER: d
RATIONALE: $20,000 (Current Liabilities) + $60,000 (Bonds Payable) + $12,000 (Lease Obligations) +
$2,000 (Deferred Income Taxes / $42,000 (Total Stockholders’ Equity) = $94,000/$42,000 =
2.238 or 2.24
120. A decreasing long-term liability account is presented on the statement of cash flows as
a. a decrease in cash in the Financing Activities category.
b. a decrease in cash in the Investing Activities category.
c. an increase in cash in the Operating Activities category.
d. an increase in cash in the Financing Activities category.
ANSWER: a
121. On January 1, 2016, the long-term liability section of Quick Silver Co. balance sheet showed a balance of $800,000
in the bonds payable account. On December 31, 2016, the balance in that same account was $765,000. This change would
appear on the statement of cash flows as
a. an outflow of cash of $35,000 in the financing activities category.
b. an inflow of cash of $35,000 in the financing activities category.
c. an outflow of cash of $35,000 in the investing activities category.
d. an inflow of cash of $35,000 in the investing activities category.
ANSWER: a
122. An example of a cash flow related to a liability that would not appear in the financing activities category of the
statement of cash flows is
a. mortgage payable.
b. bonds payable.
c. deferred income taxes.
d. a lease obligation.
ANSWER: c
DIFFICULTY: Easy
123. On January 1, 2016, the long-term liability section of Eden Company's balance sheet showed a balance of $35,000 in
the bonds payable account. On December 31, 2016, the balance in that same account was $20,000. This change would
appear on the statement of cash flows as
a. an outflow of cash of $15,000 in the financing activities category.
b. an inflow of cash of $15,000 in the financing activities category.
c. an outflow of cash of $15,000 in the investing activities category.
d. an inflow of cash of $15,000 in the investing activities category.
ANSWER: a
DIFFICULTY: Easy
124. [APPENDIX] The deferred income taxes for a corporation represent
a. the dollar amount of deductions that a corporation may claim for the year.
b. an additional assessment made by the IRS for underpaid taxes.
c. the estimated amount of next year's taxes.
d. the dollar amount that arises due to the difference between accounting for financial statements and accounting
for tax purposes.
ANSWER: d
DIFFICULTY: Easy
125. [APPENDIX] Deferred income taxes arise because

a. corporations often make errors in their tax estimations.
b. companies can use accounting methods that minimize net income for tax purposes and other methods that
maximize net income for reporting to shareholders.
c. the IRS owes a company a refund from last year.
d. large corporations generally have operations in foreign countries whose tax law is quite different from U.S. tax
law.
ANSWER: b
DIFFICULTY: Easy
126. [APPENDIX] One example of a temporary difference between financial and tax reporting results from
a. rent expense.
b. tax-exempt interest from municipal bonds.
c. life insurance proceeds resulting from the death of an executive.
d. depreciation of long-term assets.
ANSWER: d
127. [APPENDIX] Wave Corporation is determining its income tax liability. It has one machine that cost $30,000 with a
4-year life and no salvage value. Wave is using an accelerated depreciation method for tax purposes. For accounting
purposes, Wave has decided to use the straight-line method. Which of the following statements is true?
a. There will be a temporary difference between accounting income and income for tax purposes.
b. There will be a permanent difference between accounting income and income for tax purposes.
c. Wave’s accounting income and income for tax purposes will be equal.
d. Accounting income will be lower than income for tax purposes, especially in the early years of the asset's life.
ANSWER: a
128. [APPENDIX] Stockton Corporation has made an accounting entry to record deferred taxes as a liability resulting
from temporary differences between accounting income and taxable income. Which of the following statements is true?
a. Deferred tax will be decreased.
b. Stockholders’ equity will be increased.
c. Stockholders’ equity will be decreased.
d. Assets will be decreased.
ANSWER: c
129. [APPENDIX] For 2016, Wasabi Company has accounting revenues of $6,000. However, because of temporary
differences between tax and accounting, $1,000 of this is not subject to tax. If expenses are $3,000 for both tax and
accounting, and the tax rate is 40%, what is the amount of tax payable to the IRS?
a. $400
b. $800
c. $1,200
d. $1,600
ANSWER: b
130. [APPENDIX] When a company has a credit balance in its Deferred Tax account, this amount would appear as a(n)
a. contra asset on the balance sheet.
b. stockholders’ equity account on the balance sheet.
c. expense account on the income statement.
d. liability account on the balance sheet.
ANSWER: d
DIFFICULTY: Easy
131. [APPENDIX] The attitude of the Financial Accounting Standards Board toward deferred tax liabilities is that they
are
a. an amount that results in a future obligation and meets the definition of a liability.
b. a bookkeeping item that is used merely to maintain equality of the accounting equation.
c. not true liabilities because the balance increases every year.
d. not payable in the immediate future so it not necessary to record them.
ANSWER: a
DIFFICULTY: Easy
132. [APPENDIX] Deferred income taxes is a balance sheet item for Iowa Products Company. How would it most likely
be classified on the balance sheet?
a. Owners’ equity
c. Expense
d. Contra liability
ANSWER: b
DIFFICULTY: Easy
133. [APPENDIX] A decrease in deferred taxes (liability) would appear on the statement of cash flows, prepared using
the indirect method as a(n)
a. addition to net income in the operating activities category.
b. deduction to net income in the operating activities category.
c. inflow of cash in the financing activities category.
d. outflow of cash in the financing activities category.
ANSWER: b
134. [APPENDIX] O’hara Company uses the straight-line depreciation for financial reporting purposes and an accelerated
depreciation method for tax purposes. As a result, O’hara will record:
a. a deferred tax asset.
b. a deferred tax liability.
c. a permanent difference.
d. tax-exempt depreciation.
ANSWER: b
DIFFICULTY: Easy
135. All of the following are considered to be long-term liabilities for Parsons Company except:
a. Bonds issued this year (due in 10 years).

b. The third year payments for a three-year lease signed this year.
c. The current year portion of Deferred taxes.
d. The principal of a note payable signed this year, but due in five years.
ANSWER: c
DIFFICULTY: Easy
136. Which of the following statements is false with respect to bonds?
a. Firms issue bonds in very large single issues.
b. Bonds must be held until maturity by the initial investor.
c. The denomination of the bond is usually referred to as the face value.
d. Bonds that are not backed by specific collateral of the issuing company are known as debenture bonds.
ANSWER: b
DIFFICULTY: Easy
137. Connor Martin Corporation’s balance sheet showed the following amounts: Current Liabilities, $10,000; Bonds
Payable, $3,000; Lease Obligations, $4,000; and Notes Payable, $600. Total stockholders’ equity was $12,000. The debt-
to-equity ratio is:
a. 0.83.
b. 1.47.
c. 1.42.
d. 0.63.
ANSWER: b
138. Frank Crawford Corporation’s balance sheet showed the following amounts: Current Liabilities, $15,000; Bonds
Payable, $8,000; Lease Obligations, $9,000; and Notes Payable, $5,600. Total stockholders’ equity was $17,000. The
debt-to-equity ratio is:
a. 0.88.
b. 1.18.
c. 0.71.
d. 2.21.
ANSWER: d
139. When using the indirect method for preparing the statement of cash flows, all of the following will appear in the
operating activities section except:
a. Increase in deferred tax.
b. Depreciation expense on leased assets.
c. Interest expense.
d. An increase in long-term liabilities.
ANSWER: d
140. Cash interest payment is computed annually when a bond is issued for other than its face value. For a bond issued at
a discount, how will this component change as the bond approaches maturity?
a. decrease
b. increase
c. remain constant
d. not enough information given to decide
ANSWER: c
DIFFICULTY: Easy
141. Interest expense is computed annually when a bond is issued for other than its face value. For a bond issued at a
discount, how will this component change as the bond approaches maturity?
a. decrease
b. increase
c. remain constant
ANSWER: b
DIFFICULTY: Easy
142. Amortized discount is computed annually when a bond is issued for other than its face value. For a bond issued at a
a. decrease
b. increase
c. remain constant
ANSWER: b
DIFFICULTY: Easy
143. Carrying value is computed annually when a bond is issued for other than its face value. For a bond issued at a
a. decrease
b. increase
c. remain constant
ANSWER: b
DIFFICULTY: Easy
144. Cash interest is computed annually when a bond is issued for other than its face value. For a bond issued at a
premium, how will this component change as the bond approaches maturity?
a. decrease
b. increase
c. remain constant
ANSWER: c
DIFFICULTY: Easy
145. Interest expense is computed annually when a bond is issued for other than its face value. For a bond issued at a
a. decrease
b. increase
c. remain constant
ANSWER: a
DIFFICULTY: Easy
146. Amortized premium is computed annually when a bond is issued for other than its face value. For a bond issued at a
a. decrease
b. increase
c. remain constant
ANSWER: b
DIFFICULTY: Easy
147. Carrying value is computed annually when a bond is issued for other than its face value. For a bond issued at a
a. decrease
b. increase
c. remain constant
ANSWER: a
DIFFICULTY: Easy
Completion
148. All liabilities that are not classified as current liabilities are classified as ___________________.
ANSWER: long-term
DIFFICULTY: Easy
149. The denomination or principal amount of the bond is usually referred to as the _________________________.
ANSWER: face value
par value
DIFFICULTY: Easy
150. ____________________ bonds may be retired by the issuing company before their specified due date.
ANSWER: Callable
DIFFICULTY: Easy
151. The _____________________ rate of interest is the rate that bondholders could obtain by investing in other bonds
that are similar to the issuing firm's bonds.
ANSWER: market
DIFFICULTY: Easy
152. The bond issue price equals the _________________________ of the cash flows that the bond will produce.
ANSWER: present value
DIFFICULTY: Easy
153. Bonds were issued at a(n) _____________________ when the issue price exceeds the face value.
ANSWER: premium
DIFFICULTY: Easy
154. Discount on Bonds Payable is shown on the balance sheet as a(n) ____________________________.
ANSWER: contra liability
DIFFICULTY: Easy
155. If the market rate of interest is greater than the face rate, then the bonds are issued at a(n)
________________________.
ANSWER: discount
DIFFICULTY: Easy
156. ______________________ is the process of transferring an amount from the bond discount or premium to interest
expense each time period to adjust interest expense.
ANSWER: Amortization
DIFFICULTY: Easy
157. ______________________ is either the bond's face value minus any unamortized discount or plus any unamortized
premium.
ANSWER: Carrying value
DIFFICULTY: Easy
158. The effective interest method amortizes premium or discount in a manner that produces a(n)
______________________ rate of interest from period to period.
ANSWER: constant
DIFFICULTY: Easy
159. Under the effective interest method of amortization, the interest expense for each period is the carrying value times
the ______________________.
ANSWER: effective rate
market rate
DIFFICULTY: Easy
160. When a bond is retired early and the redemption price is greater than the bond's carrying value, there will be a(n)
______________________ on redemption.
ANSWER: loss
DIFFICULTY: Easy
161. A(n) ______________________ lease is recorded on the lessee's balance sheet as an asset and related liability.
ANSWER: capital
DIFFICULTY: Easy
162. Although operating leases are not recorded on the balance sheet by the lessee, they are disclosed in the
____________________________________.
ANSWER: notes to the financial statements
financial statements
DIFFICULTY: Easy
163. For a capital lease, the lessee must record both an asset and a liability. The amount of the asset is subsequently
reduced by the process of __________________________.
ANSWER: depreciation
amortization
DIFFICULTY: Easy
164. In calculating deferred income taxes, ___________________________________ occur when an item is included in
the tax calculation and is never included for financial accounting purposes, or vice versa.
ANSWER: permanent differences
DIFFICULTY: Easy
165. An alternate term for a timing difference is a _________________________.

ANSWER: temporary difference
DIFFICULTY: Easy
Matching
Match the following bond and long-term liability related terms to the appropriate definition.
a. Long-term liability
b. Face value
c. Debenture bonds
d. Serial bonds
e. Callable bonds
f. Face rate of interest
g. Market rate of interest
h. Bond issue price
i. Premium
j. Discount
k. Effective interest method of amortization
l. Carrying value
m. Gain or loss on redemption
DIFFICULTY: Easy
FACC.PONO.13.10-03 - LO: 10-03
FACC.PONO.13.10-04 - LO: 10-04
FACC.PONO.13.10-05 - LO: 10-05
FACC.PONO.13.10-06 - LO:10-06
166. The principal amount of the bond as stated on the bond certificate.
ANSWER: b
167. Bonds that are backed by the general creditworthiness of the issuer and are not backed by specific collateral.
ANSWER: c
168. An obligation that will not be satisfied within one year.

ANSWER: a
169. The excess of the issue price over the face value of bonds. It occurs when the face rate on the bonds exceeds the
market rate.
ANSWER: i
170. Bonds that do not all have the same due date. A portion of the bonds comes due each time period.
ANSWER: d
171. The excess of the face value of bonds over the issue price. It occurs when the market rate on the bonds exceeds the
face rate.
ANSWER: j
172. Bonds that may be redeemed or retired before their specified due date.
ANSWER: e
173. The process of transferring a portion of premium or discount to interest expense. This method transfers an amount
resulting in a constant effective interest rate.
ANSWER: k
174. The interest rate stated on the bond certificate. It is also called the nominal or coupon rate.
ANSWER: f
175. The face value of a bond plus the amount of unamortized premium or minus the amount of unamortized discount.
ANSWER: l
176. The interest rate that bondholders could obtain by investing in other bonds that are similar to the issuing firm’s
bonds.
ANSWER: g
177. The difference between the carrying value and the redemption price at the time bonds are redeemed. This amount is
presented as an income statement account.
ANSWER: m
178. The total of the present value of the cash flows produced by a bond. It is calculated as the present value of the
annuity of interest payments plus the present value of the principal.
ANSWER: h
Subjective Short Answer
Sewickley Company
Use the liabilities section of Sewickley Company’s balance sheet to answer the questions that follow.
Sewickley Company
Consolidated Balance Sheets
(in millions)
December 31,
2017 2016
Current liabilities
Short-term borrowings $ 354 $ 202
Accounts payable and other current liabilities 4,461 4,529
Income taxes payable 183 64
Total current liabilities $4,998 $4,795
Long-term debt $2,651 $3,009

Other long-term liabilities 3,876 3,960
Deferred income taxes (assume all are long-term) 1,496 1,367
179. Review the consolidated balance sheets of Sewickley Company.
Required:
(1) Which long-term liability would also be listed in the short-term liability section? Why?
(2) What percent of the total liabilities for 2017 and 2016 are long-term liabilities? What implication does this have?
ANSWER: (1) The long-term liability which is also listed in the short-term liability section is the portion
of long-term debt due within one year of the balance sheet date. The portion due in a period
longer than one year is classified as long-term debt.
(2) The percent of the total liabilities that are long-term liabilities for the two years are: 2017,
61.6%; 2016, 63.5%. The implication is that there were large amounts of long-term liabilities
that matured in 2017. The percent decreased from 2016 to 2017 due to the large increase in
short-term borrowings as compared with the other liability accounts. Management needs to
take steps to assure that the corporation will be able to generate the cash necessary to retire
the debt as it matures.
DIFFICULTY: Easy
Required:
Which one of the liabilities shown in the balance sheets is used in the calculation of the debt-to-equity ratio?
If we can assume that the stockholders' equity total remained relatively constant for the two years, how would the ratio
change (increase/decrease) from 2016 to 2017? What would this say about the company’s financial position?
ANSWER: All liabilities are used in the calculation of the debt-to-equity ratio: total liabilities/total
stockholders' equity. Total liabilities for the two years were: 2017, $13,021; 2016, $13,131
(in millions).
If it is assumed that stockholders' equity remained relatively constant for the two years, then
the company’s financial position would have improved slightly.
Required:
(1) What are the total long-term liabilities for the two years presented?
(2) What is the percent increase/decrease of long-term liabilities from 2016 to 2017? Which liability appears to have
caused the greatest change?
ANSWER: (1) 2017 – $8,023 (in millions)
$2,651 (Long-term debt) + $3,876 (Other long-term debt) + $1,496 (Deferred income taxes)
= $8,023
2016 – $8,336 (in millions)

$3,009 (Long-term debt) + $3,960 (Other long-term debt) + $1,367 (Deferred income taxes)
= $8,336
(2) a decrease of 3.75 or 3.8% (Rounded)

2016 Long-term liabilities—$8,336
2017 Long-term liabilities—$8,023
[($8,023 – $8,336)/$8,336] × 100 = 3.75 or 3.8%. (Rounded)
The long-term liability which appears to have caused the greatest change is long-term debt.
(2016 – $3,009; 2017 – $2,651)
DIFFICULTY: Easy
FACC.PONO.13.10-08 - LO: 10-08
182. On March 1, 2016, Farmer Co. issued at a price of 100 $20 million of 8%, 25-year bonds payable. Interest is payable
semiannually each March 1 and September 1.
Required:
Present the adjusting entry necessary at December 31, 2016, regarding this bond issue.
ANSWER: Dec. 31 Bond Interest Expense 533,333
Bond Interest Payable 533,333
(20,000,000 × 8% × 4/12)
Balance Sheet Income Statement
Stockholders’ Net
Assets = Liabilities + Equity Revenues – Expenses = Income
Bond Bond
Interest Interest
Payable Expense
533,333 (533,333) 533,333 (533,333)
183. East Liberty Corp. received authorization on December 31, 2016, to issue $7,000,000 face value of 6%, 10-year
bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest,
April 1, 2017. The bonds are callable by East Liberty at any time at 102.
Required:
Prepare the journal entry to record issuance of the bonds on April 1, 2017.
ANSWER: 2017
April 1 Cash 7,105,000
Bonds Payable 7,000,000
Bond Interest Payable 105,000
Stockholders’ Net
Bonds Payable
Cash
7,000,000
7,105,000
Bond Interest
Payable 105,000
Issued $7,000,000 face value bonds at par, plus three months’ accrued interest.
($7,000,000 × 6% × 3/12 = $105,000)
Required:
Prepare the journal entry to record the first semiannual interest payment on the bonds at June 30, 2017.
ANSWER: 2017
June 30 Bond Interest Payable 105,000
Bond Interest Expense 105,000
Cash 210,000
To record payment of semiannual interest.
($7,000,000 × 6% × 1/2)
Stockholders’ Net
Bond Bond
Cash Interest Interest
(210,000) Payable Expense
(105,000) (105,000) 105,000 (105,000)
Required:
1. What is the amount of bond interest expense that appears in East Liberty’s 2017 income statement relating to these
bonds?
2. What is the amount of accrued bond interest expense that appears in East Liberty's balance sheet at December 31, 2017,
with respect to these bonds?
ANSWER: 1. $315,000 interest expense.
Since the bonds were issued at par, interest expense is equal to the contractual interest for the
period that the bonds were outstanding. ($7,000,000 × 6% × 9/12 = $315,000)
2. $0 accrued bond interest payable. The interest payment date is Dec. 31; therefore, interest
for the last six months of a year is paid and does not appear as a liability in the balance sheet.
Required:
East Liberty exercises the call provision and retires one-half of the bond issue on July, 1, 2019. Prepare the journal entry
to record this transaction on July 1, 2019.
ANSWER: 2019
July 1 Bonds Payable 3,500,000
Loss on Retirement of Bonds 70,000
Cash 3,570,000
To record retirement of $3,500,000-face-value
bonds, originally issued at par, at 102.
Stockholders’ Net
Loss on
Cash Bonds Retirement
(3,570,000) Payable of Bonds
(3,500,000) (70,000) 70,000 (70,000)
187. A bond payable is dated January 1, 2016, and is issued on that date. The face value of the bond is $120,000, and the
face rate of interest is 6%. The bond pays interest semiannually. The bond will mature in five years.
Required:
1. What will be the issue price of the bond if the market rate of interest is 6% at the time of issuance?
2. What will be the issue price of the bond if the market rate of interest is 10% at the time of issuance?
ANSWER: 1. If the face rate is equal to the market rate, the bond will be issued at face value, or
$120,000.
2. $120,000 × 0.614 = $73,680 Table 9-2 n = 10, i = 5%
3,600 × 7.722 = 27,799 Table 9-4 n = 10, i = 5%
Issue price $101,479
188. A company issued 10-year bonds with a par value of $20,000,000 and an 8% annual face on January 2, 2016. The
issue price of the bond issue was $19,866,397 which reflected an 8.1% effective interest rate.
Required:
a) Determine the effect on the accounting equation upon recording the issuance of the bonds.
b) Determine the effect on the accounting equation upon recording the recognition of interest
expense at December 31, 2016. Any premium or discount should be amortized using the effective
interest rate method.
c) Determine the effect on the accounting equation upon recording the interest paid to the
bondholders on January 2, 2017.
d) Determine the effect on the accounting equation upon recognizing the interest expense at
December 31, 2017. Any premium or discount should be amortized using the effective interest
rate method.
ANSWER: a.
Stockholders’ Net
Cash Discount on
19,866,397 Bonds
(133,603)
Bonds
Payable
20,000,000
b.
Stockholders’ Net
Discount on Bonds
Payable 9,178 Interest
Interest Payable Expense
1,600,000 (1,609,178) 1,609,178 (1,609,178)
($19,866,397 × .081 = $1,609,178 – $1,600,000) = $9,178
c.
Stockholders’ Net
Cash Interest
(1,600,000) Payable
(1,600,000)
d.
Stockholders’ Net
Discount on Bonds
Payable
9,922 Interest
1,600,000 (1,609,922) 1,609,922 (1,609,922)
($19,866,397 + $9,178) × .081 = $1,609,922 – $1,600,000 = $9,922

FACC.PONO.13.10-05 - LO: 10-05
189. A company issued 5-year bonds with a par value of $35,000,000 and a 7% annual face on January 2, 2016. The issue
price of the bond issue was $35,216,127 which reflected a 6.85% effective interest rate.
Required:
a) Determine the effect on the accounting equation upon recording the issuance of the bonds.
b) Determine the effect on the accounting equation upon recording the recognition of interest expense at December 31,
2016. Any premium or discount should be amortized using the effective interest rate method.
c) Determine the effect on the accounting equation upon recording the interest paid to the bondholders on January 2, 2017.
d) Determine the effect on the accounting equation upon recognizing the interest expense at December 31, 2017. Any
premium or discount should be amortized using the effective interest rate method.
ANSWER: a.
Stockholders’ Net
Cash Bonds Payable
35,216,127 35,000,000
Premium on Bonds
Payable
216,127
b.
Stockholders’ Net
Premium on Bonds
Payable
(37,695) Interest
2,450,000 (2,412,305) 2,412,305 (2,412,305)
($35,216,127 × .0685 = $2,412,305 – $2,450,000) = $37,695
c.
Stockholders’ Net
Cash Interest
(2,450,000) Payable
(2,450,000)
d.
Stockholders’ Net
Interest Payable
2,450,000
Premium on Bonds Interest
Payable Expense
(40,277) (2,409,723) 2,409,723 (2,409,723)
($35,216,127 – $37,695) × .0685 = $2,409,723 – $2,450,000 = $40,277
FACC.PONO.13.10-05 - LO: 10-05
190. Bonds payable are dated January 1, 2016, and are issued on that date. The face value of the bonds is $200,000, and
the face rate of interest is 8%. The bonds pay interest semiannually. The bonds will mature in five years. The market rate
of interest at the time of issuance was 6%.
Required:
1. What is the bond issuance price?
2. Using the effective interest amortization method, what amount should be amortized for the first six-month period?
What amount of interest expense should be reported for the first six-month period?
3. Using the effective interest amortization method, what amount should be amortized for the period from July 1 to
December 31, 2016? What amount of interest expense should be reported for the period from July 1 to December 31,
2016?
ANSWER: 1.
$200,000 × 0.744 = $148,800 Table 9-2 n = 10, i = 3%
8,000 × 8.530 = 68,240 Table 9-4 n = 10, i = 3%
Issue price $217,040
Cash Interest Expense Amortized Present Value

$ 217,040.00
$8,000.00 $6,511.20* $1,488.80 215,551.20
8,000.00 6,466.54** 1,533.46 214,017.74
2. Amount amortized is $1,488.80.

Amount of interest expense is $6,511.20.*
3. Amount amortized is $1,533.46.

Amount of interest expense is $6,466.54.**
191. Stanton Heights Corporation issued $95,000 face value bonds at a discount of $5,000. The bonds contain a call price
of 102. Stanton Heights decides to redeem the bonds early when the unamortized discount is $2,750.
Required:
1. Calculate Stanton Heights Corporation’s gain or loss on the early redemption of the bonds.
2. Describe how the gain or loss would be reported on the income statement and in the notes to the financial statements.
ANSWER: 1.
Redemption price: $95,000 × 1.02 = $96,900
Carrying value: $95,000 – $2,750 = 92,250
$(4,650) loss
2. The gain or loss on bond redemption should be presented on the income statement. In most
cases, the gain or loss on bond redemption should not be considered unusual or infrequent
and therefore should not be presented in the section of the statement where extraordinary
items are presented.
192. Burger Barn Company issued $150,000 face value bonds at a premium of $6,000. The bonds contain a call provision
of 102. Burger Barn decides to redeem the bonds due to a significant decline in interest rates. On that date, Burger Barn
had amortized only $1,500 of the premium.
Required:
1. Calculate the gain or loss on early redemption of the bonds.
2. What journal entry should be recorded at the time of bond redemption?
3. Where should the gain or loss should be presented on the financial statements?
4. Why is the call price is normally higher than 100?
ANSWER: 1.
Redemption price $150,000 × 1.02 = $153,000
Carrying value $150,000 + ($6,000 – $1,500) = 154,500
Gain on redemption $ 1,500
2.
Bond redemption Entry: Bonds Payable 150,000
Premium on Bonds 4,500
Cash 153,000
Gain on Bond Redemption 1,500
Stockholders’ Net
Bonds
Cash Payable
(153,000)
(150,000)
Premium Gain on
on Gain on Bond Bond
Bonds Redemption Redemption
(4,500) 1,500 1,500 1,500
3. The gain or loss on bond redemption should be presented on the income statement. In most
cases, the gain or loss on bond redemption should not be considered un-usual or infrequent
and therefore should not be presented in the section of the statement where extraordinary
items are presented.
4. Bonds are redeemed early only if it is advantageous to the issuing firm. However, early
redemption is usually not favorable to the investor because it usually means the investor can
no longer benefit from a favorable interest rate. To compensate the investor for foregone
interest, as well as for the costs and inconvenience involved, the call price is normally set at
an amount higher than 100.
FACC.PONO.13.10-06 - LO:10-06
Antietam Corporation
Use the note on Disclosure of Leases for the Antietam Corporation to answer the questions that follow.
The Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases,
which expire no later than 2030. The Corporation normalizes fixed escalations in rental expense under its operating leases.
Minimum annual rentals under non-cancelable operating leases, excluding operating cost escalations and contingent rental
amounts based upon retail sales, are payable as follows:
Fiscal year ending March 31,
2016 $10,051,000
2017 11,121,000
2018 10,161,000
2019 9,063,000
2020 8,814,000
Thereafter 46,681,000
Rent expense was $12,551,000; $8,911,000; and $5,768,000 for the years ended March 31, 2015, 2014, and 2013
respectively.
193. Review the information for Antietam Corporation.
Required:
(1) What are the two types of leases that a company can have? Describe each briefly.
(2) Does the note disclosure show evidence of the two types of leases?
ANSWER: (1) The two types of leases that a company can have are operating leases and capital leases.
Operating leases are in substance a rental. The user/lessee makes periodic payments to the
owner/lessor and at the end of the lease term, the property reverts back to the owner. The
lessee does not record the property as an asset, nor does it record depreciation. On the other
hand, a capital lease is in substance a purchase of an asset. The entry to record the acquisition
requires that a liability be established reflecting future payments to the seller.
(2) The note discloses operating leases. The capital leases are included on the balance sheet
as debt while the operating leases are only shown as an expense. The future lease payments
are shown so that creditors and investors will be aware of the cash amounts that Banner is
required to pay.
Required:
Determine the effect on the accounting equation when recording each type of lease described in the previous question.
ANSWER: The entry for an operating lease merely records cash payments made and rental expense.
Stockholders’ Net
Cash Rent
($xx) Expense
($xx) $xx ($xx)
The effects of a capital lease are more complicated. At the beginning of the lease term, the
following effects are recorded.
Stockholders’ Net
Leased
Asset Lease
$xx Obligation Sxx
Then when periodic lease payments are made, a portion of the payment is expensed while the
rest reduces the obligation.
Stockholders’ Net
Cash Lease Interest
($xx) Obligation Expense
$xx ($xx) ($xx) ($xx)
Also, the lessee must remember to record depreciation on the leased asset.
Stockholders’ Net
Accumulated
Depr. - Depreciation
Leased Asset Expense
($xx) ($xx) $xx ($xx)
Required:
The note disclosure mentions contingent rent payments. What do you think this means with regard to Antietam
Corporation?
ANSWER: The implication is that under certain circumstances additional rent (lease) payments are
required. Some of the lease payments are based upon retail sales and others have operating
cost escalation clauses. This would be similar to a personal rental of a car or truck with a
fixed daily rate and then a per mile charge for those miles in excess of a specified amount,
say 100. These rent payments are contingent because they depend on the outcome of future
events; i.e., the amount of actual usage.
196. Wet Paint Company signed a ten-year lease agreement on January 1, 2016. The lease requires payments of $65,000
per year every December 31. Wet Paint estimates that the leased property has a life of 11 years. The interest rate that
applies to the lease is 12%.
Required:
1. Should Wet Paint Company treat the lease as an operating lease or a capital lease?
2. If a balance sheet is presented on January 1, 2016, what amounts related to the lease will appear on the balance sheet?
3. Assume that the leased asset is depreciated using the straight-line method and the lease is amortized using the effective
interest method. What journal entries should Wet Paint make on December 31, 2016?
ANSWER: 1. This lease is a capital lease because the length of the lease exceeds 75% of the life of the
asset.
2.
Leased asset $65,000 × 5.650 = $367,250 Table 9-4, n =10, i = 12%
Lease obligation $367,250
3.
Interest Expense (12% × $367,250) 44,070
Lease Obligation 20,930
Cash 65,000
Stockholders’ Net
Lease
Cash Obligation Interest
Expense
(65,000) (20,930) (44,070) 44,070 (44,070)
Depreciation Expense: Leased Equipment

36,725
($367,250 / 10 years = $36,725)
Accumulated Depreciation: Leased Equipment 36,725
Stockholders’ Net
Accumulated Depreciation
Depreciation: Expense:
Leased Leased
Equipment Depreciation Equipment
Expense
(36,725) (36,725) 36,725 (36,725)
Padagonian Company
Use the deferred tax account that appears in the financial statements of Padagonian Company to answer the related
questions.
December 31,
(in millions) 2017 2016
Deferred income taxes $ 442 $ 358
Total assets 22,417 20,834
Total current liabilities 8,429 9,321
Total stockholders’ equity 11,366 9,316
197. [Appendix] Review the information for Padagonian Company.
Required:
(1) Where will the Deferred Income Taxes account most likely appear on a classified balance sheet?
(2) What percent is deferred income taxes of long-term liabilities for the two years?
2017 __________ 2016 ___________
(3) What percent is deferred income taxes of total liabilities for the two years?
2017 __________ 2016 ___________
ANSWER: (1) The Deferred Income Taxes account usually appears in the liability section of the balance
sheet. It is classified as a long-term (noncurrent) liability.
(2) The percent of long-term liabilities that is deferred income taxes for the two years is as
follows:
2017: 16.9%; $442/($22,417 – $8,429 – $11,366) = .169
2016: 16.3%; $358/($20,834 – $9,321 – $9,316) = .163
(3) The percent of total liabilities that is deferred income taxes for the two years is as follows:
2017: 4.0%; $442/($22,417 – $11,366) = .0399
2016: 3.1%; $358/($20,834 – $9,316) = .0310
DIFFICULTY: Easy
FACC.PONO.13.10-09 - LO: 10-09
198. [Appendix] Review the information for Padagonian Company.
Required:
(1) In your opinion, are deferred income taxes an appreciable portion of both long-term liabilities and total liabilities?
Why?
(2) What difference between accounting income and taxable income produces the Deferred Income Taxes account?
(3) Will Padagonian eventually pay the deferred tax liability? When?
ANSWER: (1) Deferred income taxes do not appear to be an appreciable portion of total liabilities. The
percentage did increase slightly from 3.1% to 4.0% of total liabilities; however, this is still an
insignificant part of the total. In 2016, it could be said that deferred income taxes were an
appreciable portion of total long-term liabilities. Deferred income taxes now represent 16.9%
of total long-term liabilities and usually anything greater than 10% is considered to be
material.
(2) The difference between accounting income and taxable income that produces the
Deferred Income Taxes account is a timing one. The IRS and the FASB may recognize
certain items as revenue in different periods. Likewise, expenses may be recognized in
different periods. Companies attempt to increase income for accounting purposes but reduce
it for income tax purposes thereby giving rise to the Deferred Income Taxes liability account.
The use of an accelerated depreciation method (MACRS) is the most common item creating a
Deferred Income Taxes liability.
(3) In the future, presumably all additional taxes which have been deferred, will be payable.
However, the amounts which are payable will probably be reduced by future timing
differences. In fact, in many companies the Deferred Income Taxes account grows year after
year as the business expands and its assets and liabilities increase.
FACC.PONO.13.10-10 - LO: 10-10
199. [APPENDIX] How do most changes in long-term liabilities on the balance sheet appear on the cash flow statement?
ANSWER: Most long-term liabilities are related to a company's financing activities. Accordingly, a
change in the balance of these long-term liabilities will be reflected in the financing activities
category of the cash flow statement. An increase in long-term debt will be shown as a cash
inflow. Similarly, the reduction of long-term debt represents a cash outflow.
There are a few long-term liabilities that are not related to a company's financing activities,
such as deferred income taxes and accrued pension costs. These long-term liabilities are
reflected in the operating activities category of the cash flow statement. An increase in these
liabilities is a positive amount or an addition to operating cash flows while a decrease is a
negative amount or a reduction to operating cash flows.
200. [APPENDIX] Describe briefly how each of the following long-term liabilities arises; i.e., what kind of transaction
produces the resulting long-term liability? You may want to include the appropriate accounts to increase or decrease
(ignore amounts) in your description.
a) Long-Term Debt
b) Deferred Income Taxes

ANSWER: Long-term debt arises from the issue of bonds which in fact is a long-term loan. If the debt is
interest bearing, periodic interest payments are required. Cash would be increased (an
increase in assets) and Bonds Payable would be increased (an increase in liabilities).
Deferred income taxes arise from timing differences in the calculation of accounting income
versus taxable income. These differences must be temporary ones. Income Tax Expense
would increase (a decrease in Net Income), Deferred Income Tax would increase (and
increase in a liability), and Income Taxes Payable would increase (an increase in a liability).
201. [APPENDIX] On January 1, 2016, Hart Company purchased an asset for $137,500. For financial accounting
purposes, the asset will be depreciated on a straight-line basis over five years with no residual value at the end of that
time. For tax purposes, the asset will be depreciated as follows: 2016, $45,000; 2017, $35,000; 2018, $25,000; 2019,
$20,000; and 2020, $12,500. Assume that the company is subject to a 35% tax rate.
Required:
1. What is the amount of deferred tax at December 31, 2016?
2. Does the deferred tax represent an asset or a liability?
3. What is the amount of deferred tax at December 31, 2020?

ANSWER: 1. Deferred Tax = $6,125 ($45,000 – $27,500*) × 0.35
2. The amount will be a deferred tax liability.
3. At December 31, 2020, the amount of deferred tax will be $0.

*Depreciation for Financial Accounting = ($137,500 – $0) /5 years = $27,500
202. A bond with a face value of $10,000 is issued at a discount of $800 on January 1, 2016. The face rate of interest on
the bond is 7%.
Required:
1. Was the market rate at the time of issuance greater than 7% or less than 7%?
2. If a balance sheet is presented on January 1, 2016, how will the bonds appear on the balance sheet?
3. If a balance sheet is presented on December 31, 2016, will the amount for the bonds be higher or lower than on January
1, 2016?
ANSWER: 1. If the bond was issued at a discount, then the market rate of interest exceeded the face rate
of 7%.
2.
Bonds payable $10,000

Less: Discount on bonds (800)
$ 9,200
3. Since the discount will be amortized, the amount will be higher than $9,200.
203. Stanton Heights Corporation decides to redeem its $100,000 face value bonds when the carrying value is
$107,019.48. The bonds are redeemed on December 31, 2016, at 102.
Required:
1. Calculate Stanton Heights Corporation’s gain or loss on the early redemption of the bonds.
2. What journal entry should be recorded at the time of bond redemption?

ANSWER: 1. Gain = Carrying Value – Call Price
Gain = $107,019.48 – $102,000.00
Gain = $5,019.48
2. Bonds Payable.................................................... 100,000.00

Premium on Bonds.............................................. 7,019.48
Cash............................................................. 102,000.00*
Gain on Bond Redemption.............................. 5,019.48
To record redemption of bonds.
*$100,000 × 102% = $102,000
FACC.PONO.13.10-06 - LO:10-06
Essay
204. One of your friends is majoring in Aeronautics. In this industry, leases are very important and he is interested in
knowing a little bit about how international accounting standards will affect the industry as compared to current U.S.
GAAP treatments for leasing. How would you explain the differences in their applications?
ANSWER: Under U.S. GAAP, the criteria to determine whether a lease contract should be considered a
capital lease are applied in a rather rigid way. If a lease meets any of the criteria, it must be
accounted for as a capital lease. If it does not meet the criteria, even by a small margin, then
it is considered an operating lease.
Under international accounting standards, however, the lease criteria are similar to U.S.
standards, but are used as “guidelines” rather than rigid rules. Therefore, there is much more
flexibility in applying the lease standards when using the international standards. This may be
a benefit or a disadvantage, depending on how you look at it. While the benefits are more
transparency in financial statements, the disadvantages are that IFRS will require more
judgment by accountants in applying those standards.
205. A friend of yours has asked you whether off-balance-sheet financing means that the amounts are immaterial and
therefore are not reported. In a short paragraph, tell him what off-balance-sheet financing is and why firms engage in off-
balance-sheet transactions?
ANSWER: Off-balance-sheet financing refers to transactions whereby a party obtains the use of an asset
but is not required to record the related liability on the balance sheet. These transactions can
be very material. Firms may favor off-balance-sheet arrangements because they believe there
are benefits in not recording an obligation as a liability. Benefits may include the
maintenance of borrowing capacity and flexibility in meeting debt/equity or similar
requirements in existing loan contracts. An example of off-balance-sheet financing is an
operating lease. The lessee is not required to record the right to use the property as an asset or
to record the obligation for payments as a liability.
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contentava ogni giorno di venticinque miriadi! [478] Simili spettacoli
durarono quattordici giorni; e mentre Commodo combatteva, noi
Senatori (prosegue Dione) ci raccoglievamo colà coi cavalieri.....
Prorompevamo con altissime grida, nelle solite acclamazioni; e
talvolta esclamavamo: «Signore sei tu, primo, felicissimo; vinci, a
memoria di uomini, Amazonio!»
Molti del popolo neppure entravano nell’Anfiteatro: alcuni poi si
dipartivano dopo essersi arrestati un momento a guardare: chi
indotto dalla vergogna delle cose che ivi si facevano, e chi per
timore. Erasi infatti sparsa la voce che l’Imperatore avea stabilito di
trafiggere con saette gli spettatori: di fare, cioè, ciò che fece Ercole
cogli Stinfalidi. Il popolo, d’altra parte, avea ben donde di ritenere per
vera quella voce che circolava; giacchè non ignorava che quel
mostro una volta riunì in un luogo tutti gli storpi, gli zoppi, ecc.; ed
avendo loro circondato le ginocchia con figure di serpenti, e date ad
essi delle spugne perchè le lanciassero, quasi fossero pietre, e
considerandoli quali giganti, li percosse e li uccise.
«Questo timore [479], era a tutti comune, nè più agli altri che a noi
stessi appartenenti; perciocchè anche a noi senatori tal giuoco fece
che per quella cagione certissimo eccidio avessimo ad aspettarci.
Conciossiachè ucciso avendo egli uno struzzo (Στρουδός), e tagliato
ad esso il capo, si accostò al luogo ove sedevamo; e quel capo
stendendo a noi colla sinistra, colla destra la spada sanguinosa,
nulla disse in vero; il capo suo soltanto crollò, sogghignando colla
bocca, a fine di mostrare che la stessa cosa avrebbe a noi fatta. Per
la qual cosa movendosi molti al riso, perchè quell’atto invece di
timore il riso aveva in noi eccitato, sarebbero stati essi con quella
spada medesima trucidati, se io masticate non avessi le foglie del
lauro che nella corona aveva; e persuaso non avessi agli altri tutti di
fare lo stesso; affinchè con un movimento continuato della bocca,
celare potessimo gli indizi del riso........ Nell’ultimo giorno de’ giuochi
il di lui elmo fu altrove recato per la porta per la quale sogliono fare
uscire i defunti. E da queste cose nacque in tutti l’opinione che la di
lui morte fosse assolutamente vicina».
Sotto l’impero di Commodo, la professione di gladiatore, che prima
era infame per legge, addivenne tanto nobile, che si formò il collegio
Silvano Aureliano, il quale era composto di quattro decurie, ed aveva
a sua disposizione un tempio dedicato a Silvano [480]. Alla stessa
epoca probabilmente rimonta pur anche il collegio degli Arenarî o
Bestiarî, del quale fa menzione una lapide modenese [481].
Settimio Severo, per celebrare il proprio ritorno, il decennio del suo

impero e le vittorie da lui riportate, diè nell’Anfiteatro Flavio varî
spettacoli. Dione [482] ce li descrive così: In quell’occasione
«sessanta cignali Plauziani [483], per disposizione fatta, tra di essi
pugnarono, ed uccise furono molte altre bestie, e principalmente un
elefante ed un corocota [484]. Questo è un animale indiano; e allora
per la prima volta che io sappia, fu portato in Roma. Il suo colore è
quello della lionessa, mescolato con quello della tigre; la sua figura
partecipa degli animali medesimi, ed anche di quella del cane e della
volpe per singolare radunamento. E formato essendo il ricettacolo
delle fiere nell’Anfiteatro a foggia di una nave, così che 400 fiere
racchiuder potesse [485] e mandare fuori in una volta; sciolta
essendosi quella nave all’improvviso, ne scapparono fuori orsi,
lionesse, pantere, lioni, struzzi, asini selvatici, bisonti, i quali sono
una specie di buoi barbara per natura ed all’aspetto. Adunque 700
fiere in tutto e bestie da macello furono vedute scorrere, a vicenda; e
quindi rimanere uccise. Imperciocchè secondo il numero dei giorni
delle feste, che sette furono, sette centinaia di bestie furono
ammazzate».
Caracalla si dilettò grandemente dei giuochi gladiatorî e delle

venationes [486]. Parecchi spettacoli fe’ celebrare nel nostro
Anfiteatro: colle proprie mani uccise un elefante, una tigre ed un
ippotigre [487]. Costrinse il famoso gladiatore Batone, da tutti stimato
invincibile, a battersi nello stesso giorno, ed uno dopo l’altro, con altri
tre gladiatori: Batone, già sfinito, rimase vittima del terzo.
Antonino Caracalla onorò il cadavere di Batone con pompose e
magnifiche esequie [488]; e, per compensare in qualche maniera quel
suo atto crudele, gli fece edificare un magnifico sepolcro. Il
Fabbretti [489], presso la Via Aurelia, nella villa Doria-Pamphili,
ritrasse il disegno del cippo, alto piedi 6, once 6, dedicato a questo
famoso gladiatore:
BA . TO . NI .
Sotto il nome così punteggiato, si scorge una figura scolpita,
barbata, rappresentante Batone con fasce legate intorno al petto,
avente sui lombi una larga cintura, ed al collo una doppia catena, o
collana, adornata con due pallottole rotonde (torques). Colla destra
stringe un coltello; la sinistra è difesa dallo scudo, ed egli ha la testa
nuda. Il Winckelmann [490] pubblicò di nuovo questo bassorilievo, e
su di esso fece le seguenti osservazioni: «Egli non ha che un
gambale alla gamba sinistra, formato da una lastra, e legatovi dietro
con delle fasce...... Questa gamba, che mirasi così armata nelle
figure di Castore e Polluce, tanto rinomati pei giuochi ginnici, dipinte
in un vaso di terra cotta....; sì in due gladiatori impressi in una
lucerna anch’essa di terra cotta [491], fanno vedere quest’uso essere
stato proprio di coloro che combattevano nei giuochi pubblici.
L’andar poi eglino così armati ne fa supporre che i gladiatori,
mettessero avanti il piede sinistro, e ritirassero il destro; sebbene la
destra gamba di Batone non rimane senza difesa; vedendovisi
legato sotto il ginocchio un riparo per li colpi, che l’avversario avesse
cercato di dargli in quella parte».
Regnando Macrino, un fulmine, come vedremo, appiccò il fuoco
all’Anfiteatro, che rimase perciò mutilo per qualche tempo; ed i
giuochi gladiatorî si diedero nello Stadio [492].
Eliogabalo ne intraprese il restauro, e Severo Alessandro lo portò a
perfezione. Una medaglia di quest’imperatore (dell’a. 223)
rappresenta il combattimento di un uomo con una belva [493]
nell’arena dell’Anfiteatro Flavio. Fuori di questo si scorge, su di un
piedistallo, un frammento di colonna, e l’imperatore in atto di entrare
nell’Anfiteatro, seguito da una guardia: dall’altra parte apparisce una
specie di portichetto con frontone [494]. La medaglia ha questa
scritta:
IMP . CAES . M . AVR . SEV . ALEXANDER AVG .
e, nel rovescio:
PONTIF . MAX . TR . P . II . COS . P . P . S . C . [495].
Solennissimi furono gli spettacoli che si celebrarono nell’Anfiteatro
Flavio sotto l’impero di Gordiano III [496].
Il Lanciani [497] dice: «È notissima la passione della famiglia di
Gordiano Giuniore e di lui stesso per le venationes, e la loro
munificenza nel celebrarle». Gordiano III, per festeggiare il suo
trionfo Persico [498], avea preparati in Roma 1000 paia di gladiatori
fiscali o di proprietà governativa; 22 elefanti, 10 alci, 10 tigri, 60 leoni
mansuefatti, 10 belbi ossia iene, un ippopotamo, un rinoceronte, 10
arcoleonti o leoni di prim’ordine, 10 camelo-pardali, 20 onagri, 40
cavalli indomiti ed altre innumerevoli belve feroci. Ma queste bestie
furono esposte dal suo successore ed assassino, Filippo, nei ludi
secolari, quando, cioè, nel consolato suo e di suo figlio, celebrò
l’anno millesimo della fondazione di Roma [499]. Pomponio Leto è di
parere che questi ludi siano stati fatti nel Circo Massimo e nel teatro
di Pompeo. Il Muratori [500] dimostra che si diedero nell’Anfiteatro.
Nondimeno, come giustamente osserva il Salmasio, essendo
probabile che la distribuzione dei donativi, solita a farsi dagli
Imperatori al popolo, avesse luogo nell’Anfiteatro Flavio; ed è da
credersi che, oltre ai ludi celebrati nel Circo Massimo, se ne
celebrassero anche altri nell’Anfiteatro: molto più che Giulio
Capitolino pare che distingua i giuochi fatti nel Circo dai doni che si
distribuirono nell’Anfiteatro: et muneribus atque circensibus.
Anche Probo diede nell’Anfiteatro sontuose cacce nell’anno 281, in
cui celebrò il suo trionfo. Vopisco [501] riferisce che in questa
circostanza Probo fece uscire dagli ipogei del nostro Anfiteatro 100
leoni di prim’ordine, iubati, colle loro giubbe sciolte, i quali coi loro
ruggiti facevano rimbombare la cavea a guisa di tuoni; e furono tutti
uccisi dai cacciatori. Si diè poscia la venatio di 100 leopardi africani
e di 100 siriaci; di 100 leonesse, e 300 orsi insieme; il quale
spettacolo, dice il biografo, riuscì più grandioso che gradito: Magnum
magis constat spectaculum fuisse quam gratum.
Alla venatio fe’ seguito un ludo gladiatorio, nel quale lottarono i
prigionieri condotti in Roma pel trionfo: questi erano quasi tutti
africani, della tribù dei Blemî; e ad essi furono aggiunti alcuni
Germani, Sarmati e ladroni Isauri. In tutto, paia 300.
Quando, nel 274, Aureliano condusse sul Campidoglio, dietro al suo

carro ed avvinta con catene d’oro, la superba regina dei Palmireni,
Zenobia, e i due Tetrici; l’immensa processione fu preceduta da 20
elefanti, 200 belve ammansite, della Libia e Palestina, da diversi
camelo-pardali, da alci, e da altre simili bestie forastiere [502].
Succedevano a queste 800 paia di gladiatori e i prigionieri delle varie
barbare nazioni soggiogate, cioè: gli Alani, gli Arabi, gli Assomiti, i
Battriani, i Blemmî, i Persiani, i Goti, i Sarmati, i Franchi, gli Svevi, i
Germani, i Vandali, gl’Iberi, gli Eudemoni, i Palmireni e gli Egiziani. I
seguenti giorni furono impiegati in combattimenti gladiatorî, in cacce
di fiere ed in naumachie [503]: segno evidente che in quei pubblici
sollazzi si fecero massacrare i 1600 gladiatori ed i prigionieri.
Imponentissimi spettacoli ebbero luogo nell’Anfiteatro Flavio ai tempi

di Caro, Carino e Numeriano (283). Calpurnio ce li descrive
particolareggiatamente; e la sua Ecloga è tanto più interessante, in
quanto che fu egli teste oculare di ciò che narra. Calpurnio [504]
induce il pastore Coridone a descrivere ad un altro pastore, Licota,
gli spettacoli dati nel nostro Anfiteatro ai suoi giorni; ed in pari tempo
descrive l’anfiteatrale edificio. Noi riportiamo in nota il testo, dando
qui relegante traduzione del march. Luigi Biondi pubblicata in Roma
nel 1841.
«Coronato di travi in un conteste

Vidi il superbo Anfiteatro al cielo
Surgere, quasi del Tarpeio colle
Sovrastando alla vetta; e vidi immenso
Ordin di gradi dolcemente acclivi.
Pervenni là dove la sozza plebe
In abbrunati vesti, avea suo loco
Infra le logge ove sedean le donne;
Perchè lo spazio, che non chiuso giace
Sotto l’aperto ciel, riempivan densi
I cavalieri e i candidi tribuni.
Appunto come questa valle in giro
Spazïoso dilatasi, ed i suoi
Fianchi inarcando, concava si curva
Per entro una catena di montagne
Incoronate di pendenti selve;
Così pur ivi flessuoso cerchio
Cinge lo spazio della curva arena:
E due gran moli torte in egual arco
Forman conesse insieme egual figura.
Come ridir potrò le cose tutte,
Se tutte contemplarle a parte a parte
Io medesimo non valsi? fulgor tanto
D’ogn’intorno la vista mi percosse!
. . . . . . . . . . . . . . . .
Coverto d’auro il portico, di gemme
Ricoverta del portico la fascia,
Splendevano a vicenda: e colà dove
Ha termine l’arena, e il vasto circo
Chiudesi di marmorea muraglia,
Eran d’avorio levigate ruote,
Il cui volubil perno delle fere,
Col volger pronto, l’adugnar fu vano,
E si avventan, le rovescia a terra.
Splendevan anco di fin auro attorte
Le reti che sporgeano inver l’arena
Per più denti disposti a ugual distanza:
Ed era (s’io pur merto fede alcuna,
La mi porgi, o Licota) era ogni dente
Assai più lungo d’un de’ nostri aratri.
Che mai per ordin potrei dirti? Io vidi
Ogni sorta di belve: i bianchi lepri;
I cinghiali col corno; e la manticora;
E persin l’alce trasportata insieme
Cogli alberi del bosco ov’ella nacque.
Vidi pur tauri moltiformi: alcuni
Squassan le giubbe per lo collo, e ad altri
Aspra la barba giù dal mento scende,
E setolosa la giocaia trema,
Nè solo io vidi le silvestre fere;
Ma vidi pur gli equorei vitelli
Affrontati con orsi: anco la belva
Vidi del nome del cavallo degna,
Se ben deforme, che in un fiume nasce....
Quel fiume che trabocca e i colli irriga.
Oh quante volte trepidando scôrsi
Spalancarsi l’arena, e dall’aperta
Voragin della terra emerger belve!
E spesso fuor de le latebre istesse
Crebber piante che avean d’auro le fronde,
E le cortecce del color del croco» [505].
Contro il costume dei suoi antecessori, sembra che Diocleziano non

abbia dato nell’Anfiteatro Flavio solenni giuochi, neppure allorchè
venne in Roma per celebrarvi i vicennali. Il Muratori [506] dà di questo
fatto, quasi singolare, la spiegazione seguente:
«Parla ancora (Lattanzio) di sontuosi conviti dati in questa occasione
da Diocleziano, ma non già dei solenni giuochi, siccome
costumarono i precedenti Augusti, perchè egli, studiando il più che
potea il risparmio, si rideva di Caro e d’altri suoi predecessori, che
secondo lui scialacquavano il danaro nella vanità di quegli spettacoli.
Uscirono perciò contro di lui varie pasquinate in Roma; e non
potendo egli soffrire cotanta libertà ed insolenza, giudicò meglio di
ritirarsi da Roma e di andarsene a Ravenna verso il fine dell’anno,
senza voler aspettare il primo dell’anno seguente, in cui egli doveva
entrar Console per la nona volta».
Ed ora eccoci ai Cesari cristiani. Costantino, nell’anno 325, che è

l’anno del Concilio Niceno [507], diresse da Berito (Beirut) a Massimo
una legge [508], colla quale proibiva universalmente gli spettacoli
gladiatorî, e li vietò non soltanto per aver letto i libri di Lattanzio
Firmiano [509], ma molto più perchè il cristianesimo fu mai sempre
nemico acerrimo della barbarie e d’ogni crudeltà. «Sono notissime,
dice il ch. Lanciani [510], le fasi della lotta lunga e pertinace sostenuta
dalla nascente civiltà cristiana e dal mitigarsi della fierezza degli
antichi costumi contro i giuochi gladiatorî».
Già nel 315 Costantino ordinava ad Eumelio (il quale nell’anno
seguente diveniva vicario dell’Africa) di togliere l’uso di marcare in
fronte con ferro rovente i gladiatori condannati a morte; e ciò, per
non disonorare il volto umano, in cui si traluce sempre qualche
vestigio della beltà celeste [511]. Dalla stessa Berito emana
Costantino un’altra legge, vietando assolutamente ai giudici di
condannare i rei alla condizione gladiatoria; e comanda che questa
pena sia commutata co’ lavori forzati alle miniere, affinchè, senza
spargimento di sangue, il reo subisca la pena dei suoi delitti:
nell’ozio civile, e nella domestica quiete non piacciono gli spettacoli
sanguinosi [512].
Ma il popolo amava troppo i vietati divertimenti! Non era prudente
urtare soverchiamente la sua passione; e quindi fu mestieri tollerare
ancora gli spettacoli nell’Anfiteatro Flavio. Ce n’è testimonio S.
Agostino [513], il quale narra che circa l’anno 390 venne in Roma
Alipio, il quale fu talmente violentato dai suoi amici a portarsi al
nostro Anfiteatro, onde assistere ai ludi gladiatorî, che finalmente
s’arrese. Alipio era cristiano; l’avea battezzato S. Ambrogio in
Milano; e, nell’accondiscendere ai suoi amici, fè proposito di
assistere ai giuochi cogli occhi chiusi. Resistè per molto tempo in
questa posizione; ma verso la fine dello spettacolo, il popolo, per
una singolare presa di gladiatori, proruppe in una grande
acclamazione; e il povero Alipio non potè più a lungo resistere: fu
vinto dalla curiosità, aprì gli occhi, e alla vista dello spettacolo rimase
ferito nel cuore: spectavit, clamavit, exarsit, abstulit secum insaniam,
qua stimularetur redire et alias trahens.
Anche fuori di Roma si proseguì a dare qualche spettacolo
gladiatorio. Labanio Antiocheno [514] afferma che, solo quattr’anni
dopo la legge suddetta, il suo zio materno diede in Antiochia una
meravigliosa giostra di gladiatori.
Nell’anno 357 l’Imperatore Costanzo ordinò ai munerarii, sotto multa
di 6 libbre d’oro, di non adescare col danaro i soldati; e proibì, in pari
tempo, a coloro che avessero una dignità palatina, di ascriversi al
detestabile ceto gladiatorio. Stabilì inoltre di rimettere ai maestri dei
cavalieri e dei pedoni, nonchè ai governatori di palazzo, i militi e
palatini che spontaneamente si presentassero al detto munerario per
divenire gladiatori [515]. Nel Lanciani [516] leggiamo: «Costanzo e
Giuliano ai 16 di ottobre del 357 indirizzarono ad Orfito pr. urb. altra
costituzione sullo stesso argomento [517], confermata da Arcadio e
da Onorio nel 397. La mala usanza prevalse ad onta di tutti quegli
editti».
Gl’Imperatori Valentiniano e Valente (a. 364) ordinarono a Simmaco,
Prefetto di Roma, che nessun cristiano, per qualsivoglia delitto,
venisse più condannato ai ludi gladiatorî [518].
Nell’anno 397 Arcadio ed Onorio proibirono ai Senatori di ricevere i
gladiatori al loro servizio; ed ordinarono che presentandosi essi a
questo scopo, si trasportassero nelle più remote solitudini [519].
Apprendiamo da Prudenzio [520] che sotto l’impero di Onorio si
davano ancora spettacoli gladiatorî. Il poeta ci descrive gli spettatori
di quei barbari ludi:
Respice terriferi scellerata sacraria ditis,

Cui cedit infausta fusus gladiator harena;
detesta quel crudele piacere:
Quid mortes juvenum? quid sanguine pasta voluptas?

Quid pulvis caveae semper funebris, et illa
Amphitheatralis spectacula tristia pompae?
e rivolgendo la parola all’Imperatore, lo scongiura perchè voglia una

buona volta abolire quelle scelleratezze:
Quid genus, ut sceleris, iam nesciat aurea Roma,

Te precor, Ausonii dux augustissimi regni,
Et iam triste sacrum jubeas, ut caetera tolli.
Onorio! prosegue Prudenzio, tuo padre (Teodosio il grande) vietò di

sacrificare agli idoli, e fece bene; ma tu maggior gloria t’acquisteresti
se vietassi il massacro umano, o i ludi gladiatorî, permettendo le sole
venationes:
Ille urbem vetuit taurorum sanguine tingi:

Tu mortes miserorum hominum prohibeto litari.
Nullus in urbe cadat, cujus sit poena vuluptas,
Nec sua virginitas oblectet coedibus ora.
Jam solis contenta feris infamis harenae,
Nulla cruentatis homicidia ludat in armis [521].
Nel 403 o 404, in seguito alla ben nota uccisione del monaco
Telemaco [522], della quale noi già trattammo nell’Introduzione,
ebbero fine i giuochi gladiatorî [523].
Le venationes proseguirono a celebrarsi fino al secolo VI.
Quantunque la lotta degli uomini colle belve fosse pur essa
sanguinosa, nondimeno i principi e gli scrittori non la riguardarono
molto dal lato umanitario. Due, a mio parere, ne furono le ragioni:
1.º, perchè era quasi impossibile l’intiera, simultanea e repentina
abolizione degli spettacoli gladiatorî e venatorî, pei quali, come è
noto, i popoli nutrivano tant’affetto; 2.º, perchè i bestiarî od arenarî
erano quasi tutti rei di delitti capitali, e quindi doveansi sottoporre
all’estremo supplizio; perciò si credè più opportuno ed umano che
morissero uccisi dalle belve, piuttosto che per mano de’ loro simili.
Nel 399, per celebrare e solennizzare il consolato di Flavio Manlio
Teodoro, si diedero nell’Anfiteatro delle cacce; e Claudiano, nel
panegirico che pronunziò di quel console ed in quella occasione [524],
passò in rassegna le fiere che in quella venatio dovean irrigare di
sangue l’arena.
Essendo Imperatore Teodosio e Placido Valentiniano (a. 442), le
venationes erano ancora in vigore, giacchè sappiamo che il Prefetto
Rufo Cecina Felice Lampadio, restituì, come vedremo nel seguente
capitolo, l’arena, il podio, ecc. A suo luogo riporteremo le lapidi che
ricordano questi restauri.
Nel 519 Eutarico Cillica, sposo di Amalasunta, figlia di Teodorico, si
portò in Roma per celebrare, con elargizioni e sontuose feste, il suo
consolato. All’uopo si fecero venire dall’Africa belve feroci e
peregrine, le quali, per le loro strane forme, eccitarono gran
maraviglia negli spettatori [525].
Nell’anno 523 finalmente, assumendo il consolato Anicio Massimo,
si diedero nell’Anfiteatro Flavio gli ultimi spettacoli, dei quali rimanga
memoria.
Calati in Italia i Goti col loro Re Witige (a. 537), assediarono Roma.
Belisario venne in soccorso dei Romani [526], e alla prigionia di S.
Silverio seguirono altre calamità. Roma ebbe allora ben altro a
pensare; e i giuochi anfiteatrali cessarono onninamente. E molto
meno si pensò ad essi in appresso, nel tempo che la capitale del
mondo fu oppressa dal duro giogo dei Goti e dei Longobardi, sino ai
tempi di Carlo Magno (see. VIII).
Ed ora, prima di chiudere questo capitolo mi sia lecito presentare in
nota ai lettori il testo di una lettera che Teodorico inviò al console
Massimo [527]. In questa lettera il re gotico raccomanda a Massimo di
rimunerare con lauti premî i venatores, e di premiarli più
generosamente che i lottatori, i sonatori ed i cantanti; perchè quelli
(dice), ond’essere applauditi, si espongono nell’arena dell’Anfiteatro
Flavio a divenire preda certa delle feroci belve, ed a provare (prima
che lo spirito abbandoni le lacere membra) i più crudeli tormenti.
Detesta un tale spettacolo, inventato per onorare la Scitica Diana, la
quale dilettavasi dell’effusione del sangue. Dopo una breve
descrizione dell’Anfiteatro Flavio, Teodorico passa a narrare la
maniera degli inumani ludi; quindi raccomanda di nuovo al console di
mostrarsi liberale verso quegli uomini, che, per festeggiare il suo
consolato, sono invitati alla morte; e conchiude: «Ahi deplorevole
errore degli uomini! Se un lieve lume splendesse di ciò che richiede
giustizia, di tante ricchezze si userebbe a favore della vita dei
mortali, piuttosto che gittarle per procurarne la morte».
«È singolare, conchiuderò col Gori [528], il modo di ragionare di
Teodorico. Giudica l’atto detestabile; ma, per non opporsi al
fanatismo popolare, non solo ordina di tollerarlo, ma anche di
ricompensarlo con molta liberalità!».
CAPITOLO QUINTO.
L’Anfiteatro Flavio danneggiato e restaurato.
Capitolino, nella vita di Antonino Pio, ricorda un restauro fatto da

quest’Imperatore. Tale restauro si crede comunemente occasionato
dal grande incendio avvenuto in Roma sotto lo stesso imperatore,
fondandosi sul passo di quell’autore [529]: Adversa eius
temporibus [530] haec provenerunt.... Romae incendium quod
trecentas quadraginta insulas vel domos absumpsit.... opera eius
haec extant: Romae Graecostadium post incendium restitutum,
instauratum amphitheatrum. Ma se al Ch. Lanciani [531] sembrò un
mistero l’incendio dell’Anfiteatro Flavio, prodotto da un fulmine (il che
peraltro potè avvenire a cagione delle molte parti lignee, che si
trovavano internamente sulla sommità dell’Anfiteatro), a me sembra,
più che un mistero, un’impossibilità fisica che un incendio avvenuto
nelle vicinanze del Grecostadio, Graecostadium post incendium
restitutum, ed estesosi fin presso l’Anfiteatro, avesse potuto colle
sue vampe traversare un’area libera che lo circondava: area che nel
punto più stretto era di circa 25 metri; ed abbia potuto danneggiare il
colossale recinto esterno di travertino, il quale, del resto, noi
vediamo tuttora illeso, se facciamo eccezione di tre o quattro archi
del piano terreno, che, come è noto, soffrirono il fuoco nel medio
evo.
Del restauro di Antonino Pio non se ne hanno documenti epigrafici,
lo che indica essere stata cosa di lieve momento. Il Mezzabarba, nel
suo volume delle medaglie, assicura trovarsene una coll’effigie di
Faustina, moglie di Antonino Pio, coniata dal Senato, colla scritta:
PVELLAE FAVSTINIANAE S. C.
e portante sul rovescio la figura di un edificio non dissimile dal nostro
Anfiteatro. Questa medaglia, prosegue il Mezzabarba, fu conservata
nel Museo Bassetti; e, secondo la descrizione trasmessagli dal
Noris, giudica che siffatto edificio rappresenti il restauro di
quest’Anfiteatro, eseguito da Antonino Pio in onore e memoria della
sua moglie Faustina. «Di qual sorta però fosse, dice il
Marangoni [532], non ne troviamo memoria».
Sotto il brevissimo impero di Macrino [533], l’Anfiteatro Flavio arse.

Dione [534], che fu teste oculare, così parla [535]: «Il teatro
venatorio [536], percosso dal fulmine nello stesso giorno dei
Vulcanali, fu così incendiato, che rimasero incendiati tutti i gradini ed
il recinto superiore; e tutto il resto fu dal fuoco danneggiato. Nè giovò
l’aiuto umano, quantunque vi scorresse, per così dire tutta l’acqua di
Roma; nè potè arrestarlo la pioggia, che in grande copia e
veemenza cadeva; quasi che l’acqua che vi cadeva da ambo le parti
venisse assorbita dalla forza dei lampi: e vi si aggiunse che per
questo motivo lo spettacolo dei gladiatori per molti anni si diede nel
circo».
Ma come mai il fulmine potè far ardere l’Anfiteatro? Il Ch.
Lanciani [537] dice a tal proposito: «per me è un mistero che il
Colosseo possa essere stato da un fulmine ridotto a così mal
termine, d’aver avuto bisogno di non men di sei anni per ripararlo.
D’altronde il fatto è provato dalla testimonianza di Dione, dalle
monete di Severo Alessandro e dai grandi restauri di quell’età». Ma
se si rifletta che la parte superiore dell’Anfiteatro era circondata da
una grande quantità di legname; che sul terrazzo del portico v’erano
attorno attorno arrotolate le voluminose tende di ciascun settore del
velario e l’immenso cordame per distenderle; che v’erano inoltre 240
verricelli lignei, i quali erano necessarî per la giusta tensione dei
canapi, e che, verosimilmente erano incatramati e formavano
l’ossatura del velario stesso; non si rimarrà più tanto dubbiosi in
ammettere che un fulmine, investendo le travi esterne verticali
foderate di bronzo, abbia potuto produrre una tanto disastrosa
catastrofe, e danneggiare la parte marmorea del monumento.
Sembra che in quell’occasione andò in fiamme pur anche il
pavimento o suolo ligneo dell’arena, del quale il Lanciani [538] scrive:
«L’arsione poi del pavimento o suolo dell’arena, dimostrerà a coloro
che non la vogliono intendere, che, almeno fino dal principio del
terzo secolo, l’arena lignea era pensile sulle proprie costruzioni».
Nell’anno stesso dell’incendio, ma prima che questo avvenisse,
Macrino avea già aboliti i giuochi volcanali; ma la rovina
dell’Anfiteatro, avvenuta ἐν ἀυτῆ τῶν Ἠφαιστείων ἡμέρα, cioè nel
giorno stesso nel quale avrebbero dovuto aver luogo i ludi aboliti,
destò nel popolo tal terrore superstizioso, che ne domandò e ne
ottenne il ripristinamento [539].
Sotto l’impero di Eliogabalo, s’iniziarono i restauri del nostro edificio:
Et Amphitheatri instauratio post exustionem [540]; e nell’anno 223
Severo Alessandro li proseguì [541], ordinando che le tasse sborsate
dalle donne di male affare si destinassero ai restauri dell’Anfiteatro,
del teatro di Marcello, del circo e dell’erario: Lenonum vectigal, et
meretricum, et exoletorum in sacrum aerarium inferri vetuit, sed
sumptibus publicis ad instaurationem theatri, circi, amphitheatri et
aerarii deputavit [542]. Severo Alessandro condusse a termine il
restauro; e di questo risarcimento fa fede quel nummo già da noi
riportato al capitolo quarto, e che nel diritto presenta la protome
dell’Imperatore paludata, coll’epigrafe:
IMP . CAES . M . AVR . SEV . ALEXANDER AVG .
e nel rovescio, l’Anfiteatro con combattenti, e fuori di esso persone

togate, ed intorno la scritta:
PONT . MAX . TR . P . II . COS . P . P . S . C . [543]

(a. 976/223).
Il Maffei crede che l’ultima mano al restauro l’abbia data Gordiano

Pio (a. 238); e lo deduce da quell’insigne medaglione che egli riporta
nella tav. I della sua opera sull’anfiteatro di Verona. La medaglia
offre nel dritto la protome di Gordiano III, coll’epigrafe:
IMP . GORDIANVS PIVS FELIX AVG . [544]
e, nel rovescio, l’Anfiteatro avente a sinistra la Mèta ed il Colosso, a
destra una specie di portichetto arcuato, sostenuto da colonne ed
ornato di timpano il quale copre una statua stante; in mezzo all’arena
poi presenta un toro alle prese con un elefante, e nel dintorno
l’iscrizione:
MVNIFICENTIA GORDIANI AVG.
In basso si scorge l’Imperatore a cavallo, munito di scettro e
preceduto da una Vittoria; e dietro il cavallo, un soldato. Questa
medaglia o monumento numismatico non presenta una data
positiva, ma certo appartiene al periodo fra l’anno 238 dell’êra
volgare (in cui Gordiano ebbe il titolo d’Augusto) e l’anno 244,
quando Gordiano rimase estinto pel nero tradimento di Filippo [545].
Anche il Canina [546] è di parere che Gordiano abbia aggiunte altre
opere all’Anfiteatro. Ma il Ch. Lanciani [547] dice che questa
asserzione è gratuita; imperocchè di Gordiano Giuniore opera....
Romae nulla extant praeter quaedam nymfia (sic) et balneas [548].
Circa l’anno 259 o 260 l’Anfiteatro Flavio tornò a subire un nuovo

incendio; ma il danno fu lieve, e il monumento venne tosto restaurato
dall’Imperatore Decio [549]. Se di questo restauro ne fu lasciata
memoria in marmo, questa è perita.
Una legge [550] emanata da Costantino in Sardica il 17 Dicembre, e
ricevuta gli otto marzo del 321, si riferisce alla consulta degli
aruspici, in caso che un fulmine colpisse un pubblico edificio. In
questa legge parlasi di un anfiteatro, e molti pensano che si alluda
all’Anfiteatro Flavio. Se così fosse, il danno prodotto dal fulmine
dovè essere di piccolissimo momento, giacchè nè gli storici nè i
cronografi ne fanno menzione.
Nel 357 l’Anfiteatro era nella sua piena integrità. Ammiano [551]
ricorda la nostra grandiosa mole con maraviglia: Inter alia,
Amphitheatri molem solidatam lapidis tiburtini compage, ad cuius
summitatem aegre visio humana conscendit.
Paolo Diacono narra che circa l’epoca dell’irruzione degli Unni nella
Tracia e nell’Illiria [552], Roma fu scossa da un violento terremoto, il
quale danneggiò e fe’ crollare molti insigni edificî: Sub his fere
diebus tam terribili terraemotu Roma concussa est, ut plurimae
aedes eius et aedificia corruerunt [553].
Fra gli edifici danneggiati vi fu probabilmente anche l’Anfiteatro
Flavio, giacchè, regnando Valentiniano III, negli anni cioè 425-455,
ebbero luogo in esso importantissimi restauri. Ci porge questa
notizia la epigrafe seguente:
Quest’epigrafe, pubblicata dal Fea [554] e riprodotta dal Parker [555], e

incisa in un masso di «marmo pantelico.... quadrato di circa 20 palmi
in lunghezza.... rotto, cadendo dall’alto, e di altezza 5 palmi, once
7.... Ha servito prima questo masso a due altri usi. In principio forse
per pilastro o spalla a qualche edifizio grandioso, come quelli
dell’Arco di Tito: perchè vi si vede, nella faccia sotto l’iscrizione per
lungo, un festone simile di frondi e di animali, di assai buona e
grandiosa maniera.... Dove è l’attuale iscrizione prima ve ne era
un’altra in caratteri assai più grandi di bronzo, come si rileva dagli
incavi delle lettere ancora esistenti in molti punti di tutte le linee:
malgrado che siano state rasate le lettere per incidervi le nuove.... È
notabile il luogo ove si è trovato il marmo. Questo è nel grande
portico di mezzo.... poco avanti verso l’arena ai due piloni di
travertini, sopra una selciata grande salita, fattavi nei bassi tempi....
E questa è la terza selciata che si è discoperta» [556].
Il marmoreo ricordo conservasi presso il luogo della scoperta. Le
lacune dell’iscrizione sono state così supplite:
Salvis [dd] nn Theodosio et Placido V[alentiniano

augg.]
Ruf[us] Caecina Felix Lampadius v. c. [et inl. praef.
urbi]
ha[re]nam amphitheatri a novo una cum po[dio et
portis]
p[ost]icis, sed et reparatis spectaculi gradibus [restituit]
Noi già demmo il nostro giudizio nel supplemento di quest’epigrafe e

sulla frase: Portae Posticae usata in questa lapide [557].
V’ha un frammento epigrafico che dice:
SALV( d. n.... VC ET
TASIV
VM
(C. I. L. VI, p. 860, n. 83 Addit. 32099).
Questo frammento è più oscuro dell’altro che troviamo nel C. I. L. p.

860, n. 95, il quale benchè si riferisca certamente ad un restauro,
nondimeno per essere troppo meschina cosa non possiamo
giudicare della qualità dei restauri stessi. Ecco il frammento:
salvIS . DD nn . theodosio et
placiDO VAlentiniano augg.
aniciVS ACilius Glabrio Faustus (?)
v . c . et inl . praef . urbi restituit (?)
«Negli anni 467-472, un Messius Phoeb..., probabilmente prefetto

della città, condusse nuovi restauri nell’Anfiteatro. Ne fan fede
quattro brani di epigrafe scoperti negli ultimi scavi:
«I frammenti a b sono editi nel C. I. L. VI, p. 860, 100: il frammento c
è inedito: il frammento d sta pure nel C. I. L. p. 860, n. 86. Mi sembra
evidente trattarsi di due versioni dell’istessa iscrizione, la quale
ricorda restauri che non è possibile determinare con precisione. Il
nome dell’autore dei restauri si ritroverà nell’iscrizione dei sedili. I
frammenti sopra riferiti sembrano chiamarlo vir clarissimus et
inlustris praefectus u(rbi) patricius co(ns) ordinarius cet.» [558].
Un altro terremoto danneggiò l’Anfiteatro Flavio, essendo Prefetto di
Roma Decio Mario Venanzio Basilio; e questi lo restaurò sumptu
proprio, forse nell’anno 508. Tre iscrizioni rinvenute nell’Anfiteatro ce
ne fanno fede.
La prima dice:
VENANTI
VC
COS
DECIVS MARIVS VE
NANTIVS BASILIVS
VC ET INL PRAEFECTVS
VRBI PATRICIVS CONS a 508
ORDINARIVS ARENAM
ET PODIVM QVAE ABOMI
NANDI TERRAE MOTVS
RVINA PROSTRA
VIT SVMPTV PRoPRIo RESTITviT [559]
«Nel 1810, nella prima arcata in fuori della parte Nord, a sinistra
dell’ingresso, sepolta da calcinacci» [560] si trovò una lapide
opistografa. Nella fronte si legge:
d. n. iNVICTISSIMO
m. auRELIO.
caRINO. PIO
fel. iNVICTO. AVG a. 284/85
chreSIMVS TABVL.
suMMARVM RATIONVM
cuM PROXIMIS ET ADIVtoriB
nuMINI EIVS DICA
TISSIMI
Nel lato opposto:
DECIVS MARIUS VENAN

TIVS BASILIVS VC ET INL PRAE
FECTVS VRB PATRICIVS
CONSVL ORDINARIVS ARE
NAM ET PODIVM QVAE
ABONTINANDI TER
RAE MOTVS RVIN PROS
TRAVIT SVMPTV
PROPRIO RESTITVIT
Il 23 agosto 1813 fu trovata questa iscrizione in pessimi caratteri

nell’Anfiteatro Flavio, benissimo conservata. Stava in origine sul
podio dalla parte settentrionale verso il tempio di Roma e Venere,
poi caduta giù nell’Arena» [561].
DECIVS MARIVS VENANTIVS (sic)

BASILIVS V C ET INL PRAEF
VRB PATRICIVS CONSVL
oRDINARIVS ARENAM ET
PODIVM qVAE ABoMI

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Financial Accounting The Impact on

Decision Makers 10th Edition Porter

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Financial Accounting The Impact on Decision Makers 9th

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Using Financial Accounting Information The Alternative

Using Financial Accounting Information The Alternative

Financial Management for Decision Makers Canadian 2nd

Financial Management for Decision Makers Canadian 2nd

1. Discount on Bonds Payable is classified as a current liability.

3. Bonds are generally issued in denominations of $1,000.

5. Bonds are typically issued in denominations of $10,000.

7. Debenture bonds are backed by specific collateral of the issuing company.

8. Convertible bonds normally sell at a higher price than non-convertible bonds.

35. Long-term liabilities are a component of the “capital structure” of a company.

40. Most long-term liabilities are related to a firm’s investing activities.

51. A convertible bond is one where

53. Which of the following statements regarding bonds payable is true?

55. Convertible bonds are attractive to investors because

56. Which of the following statements regarding serial bonds is true?

57. Bonds are a popular source of financing because

63. Which of the following statements is correct?

64. The bond issue price is determined by calculating the

72. If bonds are issued at 101.25, this means that

79. Bonds are sold at a premium if the

101. Which of the following statements regarding amortization is true?

102. Amortization of bond discount results in a(n)

103. Amortization of bond premium results in a(n)

109. Which of the following statements regarding leases is false?

125. [APPENDIX] Deferred income taxes arise because

a. Bonds issued this year (due in 10 years).

165. An alternate term for a timing difference is a _________________________.

168. An obligation that will not be satisfied within one year.

Subjective Short Answer

Long-term debt $2,651 $3,009

180. Review the consolidated balance sheets of Sewickley Company.

2016 – $8,336 (in millions)

(2) a decrease of 3.75 or 3.8% (Rounded)

Balance Sheet Income Statement

Balance Sheet Income Statement

Balance Sheet Income Statement

Balance Sheet Income Statement

2. $120,000 × 0.614 = $73,680 Table 9-2 n = 10, i = 5%

3,600 × 7.722 = 27,799 Table 9-4 n = 10, i = 5%

Issue price $101,479

($19,866,397 × .081 = $1,609,178 – $1,600,000) = $9,178

($19,866,397 + $9,178) × .081 = $1,609,922 – $1,600,000 = $9,922

($35,216,127 × .0685 = $2,412,305 – $2,450,000) = $37,695

($35,216,127 – $37,695) × .0685 = $2,409,723 – $2,450,000 = $40,277

Cash Interest Expense Amortized Present Value

2. Amount amortized is $1,488.80.

3. Amount amortized is $1,533.46.

Balance Sheet Income Statement

Fiscal year ending March 31,

193. Review the information for Antietam Corporation.

Balance Sheet Income Statement

Balance Sheet Income Statement

Balance Sheet Income Statement