eBook Calculator Print Item ACCOUNT Bonds Payable ACCOUNT No. Balance Date Item Debit Credit Debit Credit Jan. Balance 400,000 2. Retire bonds 80,000 320,000 June 30 Issue bonds 240,000 560,000 ETA ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit ET Jan. 1. Balance 18,000 2. Retire bonds 6,400 11,600 June 30 Issue bonds 16,100 27,700 ETA Amortize discount Dec. 31 1,390 26,310 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds ETA.. Issue bonds ETA Amortization of discount Check My Work 3 more Check My Work uses remaining. Previous Next 12:27

eBook Calculator Print Item ACCOUNT Bonds Payable ACCOUNT No. Balance Date Item Debit Credit Debit Credit Jan. Balance 400,000 2. Retire bonds 80,000 320,000 June 30 Issue bonds 240,000 560,000 ETA ACCOUNT Discount on Bond Payable ACCOUNT NO. Balance Date Item Debit Credit Debit Credit ET Jan. 1. Balance 18,000 2. Retire bonds 6,400 11,600 June 30 Issue bonds 16,100 27,700 ETA Amortize discount Dec. 31 1,390 26,310 Item Section of Statement of Cash Flows Added or Deducted Amount Retire bonds ETA.. Issue bonds ETA Amortization of discount Check My Work 3 more Check My Work uses remaining. Previous Next 12:27

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 5P: Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and...

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Bond (Held-to-Maturity)Investment Journalize the entries to record the following selected bond investment transactions for Marr Products: If an amount box does not require an entry, leave it blank. a. Purchased for cash $180,000 of Hotline Inc. 5% bonds at 100 plus accrued interest of $1,500. Investments-Hotline Inc. Bonds fill in the blank 58d32df6c011fb9_2 fill in the blank 58d32df6c011fb9_3 Interest Receivable fill in the blank 58d32df6c011fb9_5 fill in the blank 58d32df6c011fb9_6 Cash fill in the blank 58d32df6c011fb9_8 fill in the blank 58d32df6c011fb9_9 Feedback a. Record the investment at face value. Interest that is receivable on the date of purchase must be recorded as well. b. Received first semiannual interest payment. Cash fill in the blank a853e5026064fa2_2 fill in the blank a853e5026064fa2_3 Interest Receivable fill in the blank a853e5026064fa2_5 fill in the blank a853e5026064fa2_6 Interest Revenue…
A$1000,5%bondwithannualcouponswillberedeemedattheendof9years.Findthepricetoyield6%. a. $1,074.35 b. $974.00 c. $1,004.95 d. $931.98
Entries for Available-for-Sale Securities) Assume the same information as in E16.3 except that the securities are classified as available-for-sale. The fair value of the bonds at December 31 of each year-end is as follows. 2025 $320,000 2026 $309,000 2027 $308,000 2028 $310,000 2029 $300,000 Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare the journal entries to record the interest revenue and recognition of fair value for 2025. c. Prepare the journal entry to record the recognition of fair value for 2026. E16.3 Carow Corporation purchased on January 1, 2025, as a held-to-maturity investment, $60,000 of the 8%, 5-year bonds of Harrison, Inc. for $65,118, which provides a 6% return. The bonds pay interest semiannually. Prepare Carow’s journal entries for (a) the purchase of the investment, and (b) the receipt of semiannual interest and premium amortization. Assume effective-interest amortization is used.
Company A, Inc. issues $500,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2022. Company B issues $500,000, 20-year, 9% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022. less
3. Prepare the journal entries to record the issuance of the bonds by Sanyal and Barnwell’s investment on February 1, 2024. 4. Prepare the journal entries by both firms to record all events related to the bonds through January 31, 2026. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
Problem5: OnJanuary1,2021,BLITZENCompanyissued10%bondsdatedJanuary1,2021withafaceamountof ₱8,000,000.ThebondsmatureonDecember31,2026.Forbondsofsimilarriskandmaturity,the marketyieldis14%.Interestispaidsemi-annuallyonJune30andDecember31.(Useatmost,4decimal placesforPVfactors) Preparethejournalentriesfor2021 Computeorprovidetheanswersforthefollowing: DeterminethepriceofthebondsonJanuary1,2021. Howmuchistheinterestexpensefortheyearended,December31,2021? Howmuchistheinterestexpensefortheyearended,December31,2022? WhatisthecarryingamountofthebondsonDecember31,2022?
Bradley-Link’s December 31, 2021, balance sheet included the following items: Long-Term Liabilities ($ in millions) 11.0% convertible bonds, callable at 102 beginning in 2022,due 2025 (net of unamortized discount of $5) [note 8] $245 11.8% registered bonds callable at 105 beginning in 2031,due 2035 (net of unamortized discount of $1) [note 8] 68 Shareholders’ Equity 6 Equity—stock warrants Note 8: Bonds (in part)The 11.0% bonds were issued in 2008 at 96.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of the Company’s no par common stock. The 11.8% bonds were issued in 2012 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company’s no par common stock for $30, beginning 2022. On January 3, 2022, when Bradley-Link’s common stock had a market…
12. On January 1, 2018, Kimber Company issued 9% bonds in face amount of P8,000,000, which mature on January 1, 2028. The bonds were issued for P7,512,000 to yield 10%. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31. On December 31, 2018, what is the carrying amount of bonds payable? Group of answer choices 7,543,000 7,592,000 7,584,000 7,587,120
14. On January 1, 2018, LJ Company issued 9% bonds in face amount of P8,000,000, which mature on January 1, 2028. The bonds were issued for P7,512,000 to yield 10%. The entity used the interest method of amortizing bond discount. Interest is payable annually on December 31. On December 31, 2018, what is the carrying amount of bonds payable? Group of answer choices 7,592,000 7,587,120 7,543,000 7,584,000
Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If the issuing corporation redeems the bonds at 102, what is the amount of gain or loss on redemption? Select the correct answer. a-$10,857 loss b-$8,883 gain c-$10,857 gain d-$8,883 loss
Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 31.12.14 31.12.15 31.12.16Amortized Cost Tk. 491,150 519,442 550000Fair Value Tk. 497,000 509,000 550000Required:(a) Indicate whether the bonds were purchased at a discount or at a premium.(b) Prepare the adjusting entry to record the bonds at fair value at December 31, 2014. The Fair Value Adjustment account has a debit balance of Tk. 1,000 prior to adjustment.(c) Prepare the adjusting entry to record the bonds at fair value at December 31, 2016
E17.3 (LO 1) (Entries for Held-to-Maturity Securities) On January 1, 2020, Hi and Lois Company purchased 12% bonds having a maturity value of $300,000 for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Hi and Lois Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Instructions a. Prepare the journal entry at the date of the bond purchase. b. Prepare a bond amortization schedule. c. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. d. Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. E17.4 (LO 1) (Entries for Available-for-Sale Securities) Assume the same information as in E17.3 except that the securities are classified as available-for-sale. The fair value of the…