A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $9,802,072. What is interest expense for 2013, using straight-line amortization? Group of answer choices $770,104 $780,000 $784,596 $789,896

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

Q: On January 1, 2021, Demeanor Company purchased bonds with face amount of P5,000,000 to be held as…

A: Bond is an investment security which provides a fixed interest income to the bondholders. The…

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: Lowfood Corporation issued 10-year USD5,000,000 8 percent bonds on March 1, 2012, with a maturity…

A: The bonds are treated as a long-term liability because there are to be paid in more than a year. The…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: On January 1, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: Face value of bond, on January 1, 2018 = P 4,000,000 Carrying value of bond on January 1, 2018 = P…

Q: Kevin Inc. issues P 10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid…

A: given that : Kevin Inc. issues P 10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. The…

Q: carrying amount of the bonds on December 31, 2023?

A: Accrued Interest -:In computation, Accrued Interest relates to the proportion of interest that has…

Q: Cramer Company sold 5-year, 8% bonds on October 1, 2011. The face amount of the bonds was $100,000,…

A: Interest expense = Interest accrued - Amortization of premium where, Accrued interest = Face value…

Q: Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570,o00 on June 30, 2021. Debt issue…

A: Bonds refers to the fixed income debt which represents loan made by an investor to a borrower. It is…

Q: On June 1, 2015, Meganium Controls, Inc. issued P12,000,000 of 10% bonds at P10,348,080. Interest is…

A: The question is based on the concept of Financial Accounting.

Q: Alpha Corporation sold and issued to Beta Corporation $400,000 of 8% (cash payable semiannually on…

A: Bond: It is a fixed income asset reflecting a loan to any borrower issued by an investor.

Q: A company issues $20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2010. Interest is paid…

A:

Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…

A: Coupon Rate: Coupon interest rate are the rate of interest paid on the bonds. The coupon rate is…

Q: On January 1, 2020, Andrea Company purchased bonds with face value of P8,000,000 for P7,679,000. The…

A: The amortization of bond is to be done in order to pay down the principal on debt regularly in…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: Crazy Corporation issued $300,000 of 10%, 20-year bonds at 106 on January 1, 2012. Interest is…

A: The bond issue premium represents the excess of bonds proceeds on issue over the face value of the…

Q: On January 1, 2014, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Effective Interest Method is used to determine amortized cost of financial asset.

Q: Haiti Company purchased 5,000 bonds per ₱1,000 face amount, 10% bonds to yield 12%. The carrying…

A: The gain amount which an investor will get after buying a bond is the function of the purchase…

Q: A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2013. Interest is paid…

A: Face Value of Bonds $1,00,00,000 Less: Proceeds from the bonds $98,02,072 Discount on bonds…

Q: Bogart . issued P800,000 of 12% face value bonds for P851,706. The bonds which were dated and issued…

A: Current price of the bond is the present value of all the cash flows payable on the bond discounted…

Q: On January 2, 2016, ABC COMPANY issued P1,500,000 of10% bonds at 97 due December 31, 2025. Legal…

A: Redemption is the return of an investor's principal on a fixed income security such as a bond.…

Q: On January 1, 2008, P5,000,000, 5-year, 10% bonds, were issued for P4,850,000. Interest is paid…

A: Bonds are form of debt or loan that is being issued by the business, on which regular interest…

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value…

A:

Q: On July 1, 2012, Insta Inc. issues $3,000,000 face value seven-year bonds with annual interest…

A: >Bonds Payable issued are the source of finance for the businesses.>The investors of these…

Q: On May 1, 2010, Kirmer Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July…

A: Bonds are a form of debt or loan issued by the company, on which company has to make regular…

Q: Tan Corporation issued $600,000,000 of 7% bonds on November 1, 2015, for $644,636,000. The bonds…

A: Compute the interest expenses for the year and the interest payable as follows:

Q: Herman Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2018. The…

A: Total discount = Face value of bonds - Proceeds from bonds = $200000 - 188500 = $11,500 Straight…

Q: MSG Corporation issued $111,000 of 3-year, 5% bonds outstanding on December 31, 2020 for $114,000.…

A:

Q: On July 1, 2016, York Company purchased a long-term investment, P1,000,000 of Park Company's 8%…

A: Computation of the Interest Income for 2016 and Carrying amount of the investment in bond are as…

Q: Matanglawin Company purchased 8,000, P1,000 face amount, 9% bond to yield 10%. The carrying amount…

A: Gain on sale of Investment: In the case of investments that were sold, the amount by which the…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…

A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…

Q: On January 1, 2018, OCEANIC Company purchased 12% bonds, having a maturity value of P800,000, for…

A: Date of Purchase of Bonds= 01-01-2018 Maturity Value= P800000 Purchase price= P860652 Transaction…

Q: On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of…

A: Solution- Face Value of the bonds = $200,000  Issue Price of the bonds = face value x 103% = 200,000…

Q: On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6250.000 for PS,950,000…

A: Calculation of Interest income for the year 2023:- P 714,000 is the correct answer Interest income…

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

Q: 12. On July 1, 2012, Madison Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Company Y issues $ 20,000,000 of 10 - year, 9% bonds on March 1, 2015 at 97 plus accrued interest.…

A: Bonds payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: ell Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2018. The bonds…

A: Bonds- Bonds are the written debt of the company on which interest is paid at a predetermined rate…

Q: A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2014. Interest is paid…

A:

Q: On January 1, 2012, One Company issued P5,000,000, 8% serial bonds, to be repaid in the amount of…

A: Solution: Serial bonds are the bonds that are structured in such a way that a portion of bond…

Q: Carsen Company purchased $200,000 of 10% bonds of Garrison Co. on January 1, 2012, paying $211,950.…

A: Bonds value= $200,000 of 10% paying $211,950 Maturity Date= January 1, 2022 Interest payment is…

Q: On July 1, 2016, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for…

A: Effective interest rate method of amortization is a process of amortizing premium on bond or…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.