How much is initial valuation of the bonds? How much cash was received upon the sale of the bonds? How much is the interest expense for the year ended December 31, 2021?
Q: April 1st, 2019, Candy Corp issued $1,400,000, 5%, 10 year bonds at face value. The bonds were dated…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1,…
A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…
Q: A bond issued by a corporation on May 1, 1999, is scheduled to mature on May 1, 2019. If today is…
A: Details given are : Bond issue date = May 1 , 1999 Bond Maturity date = May 1 , 2019 Today's date =…
Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…
A: Solution: Interest expense for the six months ended December 31, 2019 = Issue price * 10% *6/12 =…
Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…
Q: After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect…
A:
Q: equired: ) Determine the price of the bonds on January 1, 2024. ) By how much will ABC Company's…
A: Bond issuance date Jan,1,2024 10% Bond -$ 800000 Yield 8% Interest is payable on 30 June and 31Dec…
Q: Required: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)…
A: Issuance of bonds is one of the sources of financing, bonds are long-term debt for the company…
Q: Devin Company computes the following bond interest amortization table for bonds issued on January 1,…
A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…
Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: At December 31, 2020, Crane Corporation has the following account balances: Bonds payable, due…
A: Bonds payable are referred to long-term debts of the business, issued to various lenders known as…
Q: Presented below is information taken from a bond investment amortization schedule with related fair…
A: a. The bonds were purchased at a discount. Because they were purchased at less than fair value.
Q: 1. How much is the amortization of discount for 2021? 2. How much is the carrying value of the…
A: Bonds are a form of debt or liability for the business, on which regular interest payments needs to…
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A: The present value (PV) of bond the sum of the present value of interest and the PV of the maturity…
Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…
A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…
Q: on april 1, 2019 franville corporation issued, at 98 plus accrued interest, 400 of its 105, $1000…
A: Number of bonds = 400 Face value of bonds = $1,000 The bonds issued at a 98% discount Interest on…
Q: Problem is attached* How much interest income should be reported in 2019? On December 31, 2020, the…
A:
Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020. Instructions Prepare the journal…
A: The word redemption seems to have various purposes in the financial and business world, depending on…
Q: When the interest payment dates of a bond are May 1 and November 1, and a bond is purchased on June…
A: Interest is the term which is defined as the monetary charge for borrowing the money usually…
Q: The total bond interest expense that should be reported by the company for the year 2020.
A: Toledo Inc. has issued bonds of P 80,00,000 on 01.01.2016. The bonds are for a tenure of 25 years…
Q: try to record the amount ef cash proceeds from the isuance of the bonds on July 1, Year ands Payable
A: Bonds are issued at a premium as the cash proceeds from the bonds are greater than the value of…
Q: 1. What are the Harry's cash proceeds from issuance of these bonds, presuming that the selling price…
A: As the bond's quoted rate is less than the market rate the bond will be issued in discount and the…
Q: On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bondsissued by Microsoft…
A: Correct Option is “a”: Interest Revenue. After Investing in November 2018, the interest revenue will…
Q: On January 1, 2021, Focus Corporation issued $600,000, 6%, 5-year bonds at face value. Interest is…
A: a)
Q: On September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…
A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.
Q: On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…
A:
Q: How much is the estimated purchase price of the bonds on January 1, 2021?
A: The purchase price of the bond reflects the relationship between coupon interest rate and market…
Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…
A: a.
Q: On January 1, 2020, Crane Company purchased at face value, a $1110, 10% bond that pays interest on…
A: Bonds are instruments acknowledging the debt due from one person to another person to be paid on…
Q: nds on July n July 1, 2021
A: a. Price of bond = [Coupon payment x PVIFA7%,30] + [Face value x PVIF7%,30] = [700000 x 6% x…
Q: On January 1, 2021, an investor paid OR291, 000 for bonds with a principal amount of OR300,000. The…
A: The interest income refers to the amount earned by the company on the amount lent aside from the…
Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…
A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…
Q: Problem was attached* In its December 31, 2019 income statement, how much should Bell Company…
A: Bonds: An income instrument that is fixed in nature and is an indicator of the loan provided to the…
Q: On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are…
A: Interest method refers to the effective interest amortisation method that amortizes the discount on…
Q: Required a) Explain, including calculations, how the issue of the bond would be accounted for by…
A: On 1st January 2021 Corgi Ltd. issued bonds of £5 million at par value, the bonds are redeemable on…
Q: when the interest payment date of a bond are may 1 and november 1, and a bond is purchased on june…
A: A bond is a security issued as a debt instrument on which interest is generally paid by the company…
Q: The bonds were redeemed for permanent cancellation on October 1, 2022 at 108 plus accrued interest.…
A: We are given a few ledger accounts based on which we need to calculate the bond interest for the…
Q: Using effective interest method, what amount of the bond discount should be amortized for the six…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise capital for…
Q: On January 2, 2021, YELLOW Co. issued 9% bonds in the amount of ₱1,000,000 which mature on January…
A: Solution: Bond Issue price = P939,000 Amount of interest expense for the year ended Dec 31, 2021 =…
Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…
A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000
Q: hat is the amount of the gain on the bond redemptio
A:
Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…
A: Journal entries refers to the process of systematic recording of the financial transactions of a…
Q: On September 31, 2021, an entity issues bonds with face amount of P8,000,000 for P9,105, 022…
A: Cash proceeds P9,105,022 Accrued Interest (P8,000,000 *9 /12 * 9%) (P540,000) Face Value of…
Q: In what section of the balance sheet would a bond payable be reported if (a) it is payable within…
A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…
Q: On July 1, 2019, Montana Company has bonds with balances as shown below. Bonds…
A: Carrying value of bonds = Balance in Bonds Payable - Balance in Discount on Bonds Payable Gain or…
Q: On August 1, 2022, Pina Colada Corp. issued $493,200, 6%, 10-year bonds at face value. Interest is…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Step by step
Solved in 2 steps with 2 images
- On January 1, 2019, Brewster Company issued 2,000 of its 5-year, 1,000 face value, 11% bonds dated January 1 at an effective annual interest rate (yield) of 9%. Brewster uses the effective interest method of amortization. On December 31, 2023, Brewster extinguished the 2,000 bonds early through acquisition in the open market for 1,980,000. On July 1, 2022, Brewster issued 5,000 of its 6-year, 1,000 face value, 10% convertible bonds dated July 1 at an effective annual interest rate (yield) of 12%. The bonds are convertible at the option of the investor into Brewsters common stock at a ratio of 10 shares of common stock for each bond. Brewster uses the effective interest method of amortization. On July 1, 2023, an investor in Brewsters convertible bonds tendered 1,500 bonds for conversion into 15,000 shares of Brewsters common stock, which had a market value of 105 per share at the date of the conversion. Required: 1. Using the information about Brewster, answer the following questions: a. Were the 11% bonds issued at par, at a discount, or at a premium? Why? b. Is the amount of interest expense for the 11% bonds using the effective interest method of amortization higher in the first or second year of the life of the bond issue? Why? 2. Using the information about Brewster, explain the following: a. How is a gain or loss on early extinguishment of debt determined? Does the early extinguishment of the 11% bonds result in a gain or loss? Why? b. How does Brewster report the early extinguishment of the 11% bonds on the 2023 income statement? 3. Based on the information provided about Brewster, answer the following questions: a. Does recording the conversion of the 10% convertible bonds into common stock under the book value method affect net income? What is the rationale for the book value method? b. Does recording the conversion of the 10% convertible bonds into common stock under the market value method affect net income? What is the rationale for the market value method?On July 1, 2019, Aldrich Company purchased as an available-for-sale security 200,000 face value, 9% U.S. Treasury notes for 194,000. The notes mature July 1, 2020, and pay interest semiannually on January 1 and July 1. The notes were sold on December 1, 2019, for 199,000. Aldrich normally uses straight-line amortization on all of its notes. In its income statement for the year ended December 31, 2019, what amount should Aldrich report as a gain on the sale of the available-for-sale security? a. 2,500 b. 3,500 c. 5,000 d. 6,000Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.