A $300,000 bond was redeemed at 98 when the carrying value of the bond was $292,000. The journal entry for the redemption would include a
Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…
A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…
Q: A $300,000 bond was redeemed at 98 when the carrying amount of the bond was $292,000. The entry to…
A: Option b is the correct option.
Q: According to the theory, premium bonds, discount bonds, and face value bonds at the expiry date will…
A: Bonds refer to borrowing security issued by the company to raise funds from the market by making an…
Q: Bond prices depend on the market rate of interest, stated rate and time Compute the price of the…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Evaluate the following statements: S1 The proceeds of a bond with a face amount of P100,000,000…
A: Proceeds of a bond with a face amount of P100,000,000 which sells at 102 = P100,000,000 X 102/100…
Q: 4) Dolby, Inc. issued a $5,000 face value, 10% , five-year bond at 96. What will be the journal…
A: Bond discount means that the bonds which the company issues to the bond holders are sold out at the…
Q: A bond traded at 971⁄2 means that a. The bond pays 971⁄2% interest. b. The bond trades at $975 per…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold.…
A: Bond is a fixed income security which is issued by the company to raise money. Company needs to pay…
Q: A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for…
A: The journal entries are prepared to keep the record of day to day transactions of the business.…
Q: A $500,000 bond issue on which there is an unamortized discount of $50,000 is redeemed for $475,000.…
A: Given Information: Issue of bonds = $500,000 Unamortized discount = $50,000 Redeemed for = $475,000
Q: Bonds with a face value of P5,000,000 carrying a stated interest rate of 12% payable semi- annually…
A: Face value of bonds = P5,000,000 Proceeds from bonds = P5,200,000 Proceeds from bonds > Face…
Q: A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to…
A: Solution: Redemption amount of bond = $296,000*103% = $304,880 Carrying amount of bond = $307,544
Q: A $300K bond was redeemed at 98 when the carrying value of the bond was $292K. The Journal entry…
A: Gain (Loss) om redemption of bonds = Carrying value of bonds - Redemption value of bonds = $292,000…
Q: On December 31, a $1,000,000 bond issue on which there is an unamortized discount of $71,600 is…
A: Journal entry is the primary step to record the transaction in the books of accounts. The debit and…
Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…
A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…
Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise the capital for…
Q: he following information foP the NeXT II anuary 1, 20x1, the BTr issues a 5-year, 6%, P2,000…
A: Question-3 As per IFRS-9, if any financial liability is classified through Amortize cost method (as…
Q: Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance…
A: Bonds are the debts of an issuing company that is repayable after a specific period of time, it may…
Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…
A: Proceeds from redemption = $294,000 * 98/100 = $288,120
Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…
A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
Q: On January 1, 2002. Mar issued its 10% bonds in the face amount of P1,500,000. They mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.
Q: On 1 January 20X3, XYZ bought a $200,000 5% bond at nominal value. Interest is received in arrears.…
A: Bonds are amortized in the books of accounts by the difference between the interest expense and…
Q: A $650000 bond was retired at 102 when the carrying value of the bond was $677000. The entry to…
A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.
Q: 3. If bonds are issued at 101.25, this means that a.a $1,000 bond sold for $1,012.50. b.the bonds…
A: If a bond is issued more than 100, then it is called as premium. This bond is issued at premium,…
Q: A $278,000 bond was redeemed at 98 when the carrying amount of the bond was $273,830. The entry to…
A: Given data: Value of Bond: $278,000 Carrying amount of bond : $273,830 Redeemed at 98 If the…
Q: Answer the question based on the following information for a bond having no expiration date: bond…
A: It is a perpetual bond and has following information Price P = $1000 Interest (Annual) = $100…
Q: A $1,900,000 bond issue on which there is an unamortized premium of $101,264 is redeemed for…
A:
Q: A bond is brought on Aug 21, 2001 to yield 4% interest. A bond of $1,000 at 6% pay dividend…
A: A bond is a financial security issued by large business entities to borrow funds for a long-term…
Q: What is the correct answer? The total interest paid on $46,000, ten-year, 6 percent bonds that are…
A: The Interest amount of the bond to be paid to the holder is calculated on the face value of the…
Q: On January 1, 2002, Mar issued its 10% bonds in the face amount of P1,500,000. They mature on…
A: Given, Issue price of bonds = P1,329,000 Interest rate = 12%/2 = 6%
Q: A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: An investor bought two bonds—bond A was a 9% bond at 106 and bond B was a 7% bond at 94. The…
A: Current yield of the bond does not consider the commission paid. It is calculated as annual return…
Q: 18. Given the information below, which bond(s) will be issued at a discount? Bond 1 Bond 2 Bond 3…
A: 18) The bond is issued or trades at discount when, Coupon rate (stated rate of return)is less than…
Q: A $2,600 credit balance in the Premium on Bonds Payable account represents which of the following?…
A: A premium on bonds payable shows the excess value of cash received and the face value of bonds. It…
Q: A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: BlueLtd. issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12%…
A:
Q: Aloe Corp has outstanding 7%, 10-year, $2,000,000 face value bond. The bond was originally sold to…
A: Formula: Difference in bond value = Carrying value of bond - Face value of bond
Q: A$515000 bond was retired at 98 when the carrying value of the bond was $505000. The entry to record…
A: The company incur loss if payable amount is more than carrying amount of bond and incur gain if…
Q: A $500,000 bond issue on which there is an unamortized discount of $35,000, is redeemed for…
A: Outstanding Bonds of $465,000 ($500,000 - $35,000) are redeemed for $475,000 So, $10,000 is the Loss…
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Present entries to record the selected transactions described below: a. Issued $2,750,000 of…
A: Bonds are the debt instrument that is used to raise long-term debts. The bonds payable is a…
Q: A $880,000 bond issue on which there is an unamortized premium of $84,000 is redeemed for $823,000.…
A: Bonds are the debt instruments using which and entity can raise finance.
Q: On January 1, 2002, Mar issued its 10% bonds in the face amount of P1,500,000. They mature on…
A: Issue Price of Bond = 1,329,000 Interest Rate = 12% Per annum Period = 1/2 years Interest Expense…
Q: A$560000 bond was retired at 98 when the carrying value of the bond was $550000. The entry to record…
A: The loss or gain on redemption is based on the carrying value and book value of the bond. If the…
What is the
A Loss on bond redemption $4K
B Gain on bond redemption $4K
C Loss on Bond Redemption $2K
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- 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. 89.05On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?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 Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
- Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discountWilloughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________. A. $200,000 B. $558,438 C. $2,233,750 D. $6,701,250
- Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Prepare a table to amortize the premium of the bonds. Assume that the bonds were issued for $421,844.On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium