Nick Bosch has prepared the following list of statements about bonds. Identify each statement as true or false. 1. Bonds are a form of interest-bearing notes payable.
2. Secured bonds have specific assets of the issuer pledged as collateral for the bonds.
3. Secured bonds are also known as debenture bonds.
4. A conversion feature may be added to bonds to make them more attractive to bond buyers.
5. The rate used to determine the amount of cash interest the borrower pays is called the stated rate.
6. Bond prices are usually quoted as a percentage of the face value of the bond.
7. The present value of a bond is the value at which it should sell in the marketplace.
Instructions:
Identify each statement as true or false. If false, indicate how to correct the statement.

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?