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- Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortizationAPhP10000,5%bondwithsemiannualcouponsispricedtoyield7%.Findthepriceifthebondis redeemable at par at the end of 20 years. a. PhP 8,160.80 b. PhP 7,864.49 c. PhP 7,578.76 d. PhP 7,160.90
- A $100,000, 5% bond is redeemable at 110% at the end of 15 years, anddividendsarepayableannually. Findthepricetoyield(.06,m=2).True (t) or False (f) _____ If $150,000 face value bonds are issued at 104, the proceeds received will be $104,000If $800,000 of 11% bonds are issued at 102 3/4, the amount of cash received from the sale is O a. $800,000 O b. $888,000 Oc. $822,000 O d. $600,000
- 1c. Sold $80,000 of the bonds at 101 plus accrued interest of $250. DATE Debit Credit X/XIf $1,178,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is a. $883,500 b. $1,295,800 c. $1,210,395 d. $1,178,000On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000. Interest is paid on December 31 and June 30. The bonds were purchased to yield 8%. Roger uses the effective interest method to recognize interest income from investment. What should be reported as carrying amount of the bonds in Roger’s December 31, 2002 balance sheet? P1,207,000 P1,198,000 P1,195,920 P1,193,050
- A conversion of a face value $1 million convertible bond for $1 million of common stock would most likely be: B . reported as a $1 million fi nancing cash outfl ow and infl ow.January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 3. How much is the gain/loss on sale on January 2, 2023?January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified atamortized cost. The bonds were purchased to yield 12%. Interest is payable annually every December 31.The bonds mature on December 31, 2025. On December 31, 2021, the bonds were selling at 99. OnJanuary 2, 2023, Marceline the Vampire Queen Co. sold P500,000 face value bonds at 101. The bondswere selling at 103 on December 31, 2023. Based on the above and the result of your audit, answer thefollowing: Present value of 1 for 3 periods at 12%: 0.635518078 Present value of an annuity of 1 for 10 periods at 12%: 3.037349347 3. How much is the gain/loss on sale on January 2, 2023? 4. How much is the interest income on December 31, 2023? 5. How much is the discount amortization on December 31, 2022?
