Problem No. 2On January 1, 2014, WAYNE Inc. issued a 2-year, P4,000,000 bonds payable with 12% interest. The principal will be due at the end ofthe tem and the interest is payable semi-annually every June 30 and December 31. The effective interest rate of the bonds is 15%.The bonds were retired on July 1, 2015 at 95.3. What is the interest expenso for the year ended December 31, 2014?4. What is the gain/(loss) on retirement of bonds payable?

Bonds payable is the amount of bond which are the debt to the company which have to be paid by the…

Answered: 3. What is the interest expenso for the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

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Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?
On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market interest on that day was also 7%. If interest is paid quarterly, the company makes interest payments of ________. A. $1,050 B. $3,150 C. $4,200 D. $5,250
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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
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3. What is the interest expenso for the year ended December 31, 2014? 4. What is the gain/(loss) on retirement of bonds payable?