A corporation issues for cash $8,000,000 of 20-year, 8% bonds, interest payable semiannually. The amount received for the bonds will be a.the present value of 20 annual interest payments of $640,000, plus the present value of $8,000,000 to be repaid in 20 years. b.the present value of 40 semiannual interest payments of $320,000, plus the present value of $8,000,000 to be repaid in 20 years. c.the present value of $8,000,000 to be repaid in 20 years, less the present value of 40 semiannual interest payments of $320,000. d.the present value of 20 annual interest payments of $640,000.

Q: On March 1, 2020, Pyne Furniture Co. issued P700,000 of 10 percent bonds to yield 8 percent.…

A: This question deals with the concept of interest expense needs to record for year 2020. This…

Q: 1. A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…

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

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual…

A: Solution: When straight line Amortization is followed, the bond premium is based on total amount of…

Q: On March 1, 2020, Pyne Furniture Co. issued P700,000 of 10 percent bonds to yield 8 percent.…

A: Bonds are a form of loan or debt issued by the company on which regular interest payments needs to…

Q: On January 2, 2020, a calendar-year corporation sold 4% bonds with a face value of $2640000. These…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

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A: Given information is: Brimfest Corporation issued $2,400,000, 10-year, 6% bonds for $2,352,000 on…

Q: 49.   A corporation issues for cash $8,000,000 of 8%, 30-year bonds, interest payable semiannually.…

A: Bonds are the fixed interest bearing securities and are issued by an entity for financing the…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

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A:

Q: A corporation issues for cash $9,000,000 of 8%, 30-year bonds, interest payable semiannually. The…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

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

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A: The annual stated interest rate refers to the rate applied to the par value for the periodic…

Q: What amount should be recognized as gain or loss on bond retirement on June 30, 2022?

A: Gain or loss on the retirement of the bonds depends upon at which price the bonds have been retired…

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A: Given: Number of bonds = 100 Face Value = P1000 number of periods "n" = 15*2 = 30 Semiannual coupon…

Q: A corporation issues $460000, 8%, 5-year bonds on January 1, 2020 for $443000. Interest is paid…

A: Total discount on bonds = Face value of bonds - issue value = $460,000 - $443000 = $17000

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A:

Q: On Dec. 31, 2020, ABC Corp issued 4-year, 7% bonds with $2,000,000 as par value. ABC Corp. received…

A: Lets understand the basics. When bond is issued at more than its par value then it is known as…

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A: Bonds- A bond is a fixed-income tool that represents a loan made by a financier to a borrower…

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A: The Purchase price of the bond = Present Value of Interest  + Present value of Bond at Maturity.…

Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amount…

A: Cash Flow at the time of maturity = P5000000 Interest (Annuity) semi-annually =…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A:

Q: Brownlee Company issued $525,000, 8%, six-year bonds for 110, with interest paid annually.Assuming…

A: Carrying value: The face amount of bond, less unamortized discount, or plus unamortized premium, is…

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A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest…

A: Answer:   Option 3.

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A: Bond issued = $50,000 Interest rate on bond = 10% Number of years = 5 year Cash received = $52,100

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A: Bond discount or premium: if a bond issued value is higher than its original value is called Premium…

Q: Which of the following statements is true?

A: Answer:   Option a.

Q: At the beginning of the current year, QUATRO Company purchased 5-year bonds with a face amount of ₱…

A: Purchase price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, $2,000,000, 5-year, 10% bonds, were issued for $1,960,000. Interest is paid…

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Q: On January 1, 2021, Masbate Company issued 5-year bonds with face amount of P5,000,000 at 110. The…

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A: Interest amount needs to be properly recorded in the books of the company as and when it was accrued…

Q: A corporation issues $300,000, 10%, 5-year bonds on January 1, 2020, for $287,400. Interest is paid…

A: Determine unamortized discount as of Jan. 1, 2020.

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A: Bond is defined as the financial instrument which represents a debt security through which the…

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A: The journal entries are prepared to keep the record of day to day transactions of the business.

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A: The bonds are issued at premium means that carrying value of bonds payable is more than the face…

Q: Austin Corporation issues $6,000,000 of 10%, 10-year bonds, dated December 31, Year 1. The bonds are…

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A: Introduction: Interest amount: Interest is a charge levied on the principal amount. Interest is…

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A: As per the indirect method of preparation of statement of cash flows, net income is adjusted for…

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A: Face Value = 12,000,000 Coupon Rate = 15%  Interest Rate = 12%  Semi-annual coupon rate  = Coupon…

Q: On January 2, 2020, a calendar-year corporation sold 5% bonds with a face value of $3180000. These…

A: Given, Face value = $3,180,000 Coupon rate = 5%/2 = 2.5% Market rate = 7%/2 = 3.5%

Q: A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time…

A: The bonds payable are issued at premium when market rate is lower than the coupon rate of bonds…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond…

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

Q: On March 1, 2020, Pyne Furniture Co. issued P700,000 of 10 percent bonds to yield 8 percent.…

A: Bonds are a form of loan or debt issued by the business, on which regular interest payments needs to…

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A: A accounting equation is represents the relationship between the assets, liabilities, and owner's…

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par…

A: Formula: Interest expense = Bond amount x Interest rate x Time period

Q: Lee Corporation has 10-year, 12% bonds payable of $136,000 that were sold on January 2, 20X1 at a…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…