(Classification) The following items are found in the financial statements.(a) Discount on bonds payable.(b) Interest expense (credit balance).(c) Unamortized bond issue costs.(d) Gain on repurchase of debt.(e) Mortgage payable (payable in equal amounts over next 3 years).(f) Debenture bonds payable (maturing in 5 years).(g) Notes payable (due in 4 years).(h) Premium on bonds payable.(i) Bonds payable (due in 3 years). InstructionsIndicate how each of these items should be classified in the financial statements.

(Classification) The following items are found in the financial statements.(a) Discount on bonds payable.(b) Interest expense (credit balance).(c) Unamortized bond issue costs.(d) Gain on repurchase of debt.(e) Mortgage payable (payable in equal amounts over next 3 years).(f) Debenture bonds payable (maturing in 5 years).(g) Notes payable (due in 4 years).(h) Premium on bonds payable.(i) Bonds payable (due in 3 years). InstructionsIndicate how each of these items should be classified in the financial statements.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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A company issued bonds with a $100,000 face value, a 5-year term, a stated rate of 6%, and a market rate of 7%. Interest is paid annually. What is the amount of interest the bondholders will receive at the end of the year?
Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267
The following items are found in the financial statements. a. Discount on bonds payable. b. Interest expense (credit balance). c. Unamortized bond issue costs. d. Gain on repurchase of debt. e. Mortgage payable (payable in equal amounts over next 3 years). f. Debenture bonds payable (maturing in 5 years). g. Notes payable (due in 4 years). h. Premium on bonds payable. i. Bonds payable (due in 3 years). Instructions Indicate how each of these items should be classified in the financial statements.
The debt is amortized by the periodic payment shown. Compute (a) the number of payments required to amortize the debt; (b) the outstanding principal at the time indicated. Debt Principal Debt Payment Payment Interval Interest Rate Conversion Period Outstanding Principal After: $13,000 $1,493 6 months 6% monthly 8th payment
The Cidros reported the following information on long-term debt: Current year Previous year Total long-term debts $14,578 millions $18,564 millions Minus the current portion (1,290) millions (1,540) millions Long-term debts 13,288 millions 17,024 millions Determine how much total current liabilities changed between the previous year and the current year as a result of the long-term debt portion. Explain your answer.Indicates the balance of the debt the following year if The Cidros does not acquire another long-term debt in the next few years.
The adjusted trial balance for Bramble Corp. at the end of the current year contained the following accounts. 5-year Bonds Payable 8% $1170000 Bond Interest Payable 37000 Premium on Bonds Payable 73000 Notes Payable (3 mo.) 29000 Notes Payable (5 yr.) 120000 Mortgage Payable ($11000 due currently) 146000 Salaries and Wages Payable 13000 Taxes Payable (due 3/15 of next yr) 18000 The total long-term liabilities reported on the balance sheet are $1498000. $1509000. $1425000. $1436000.
The adjusted trial balance for Concord Corporation at the end of the current year contained the following accounts. 5-year Bonds Payable 8% $1940000 Bond Interest Payable 61000 Premium on Bonds Payable 121000 Notes Payable (3 mo.) 48000 Notes Payable (5 yr.) 200000 Mortgage Payable ($18000 due currently) 242000 Salaries and Wages Payable 22000 Taxes Payable (due 3/15 of next yr) 30000 The total long-term liabilities reported on the balance sheet are
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
What is the correct answer? The semi-annual interest expense to be recorded using the straight line method of interest amortization on $46,000, ten-year, 6 percent bonds that are issued at 98 is a. $1,426 b. $1,380 c. $1,334 d. $2,852
he first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays semiannual interest of $87,500 ($3,500,000 3 5% 3 1⁄2 year), receiving cash of $3,500,000. Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment, and (c) the payment of the principal on the maturity date.
2. On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 11%. Interest is payable annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR June 30, 2019: to record the amortization & payment of interest to bondholders: DR…
Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98.5, what is the amount of gain or loss on redemption?