If bonds of $1,000,000 with unamortized discount of $10,000 are redeemed at 98, the gain on redemption of bonds is $10,000. True False
Q: Required For each of the following situations, calculate the amount of bond discount or premium, if…
A: Formulas used; If Issue price is greater than face value then the resultant value will be premium.…
Q: A $540,000 bond issue on which there is an unamortized discount of $45,000 is redeemed for $446,000.…
A: When bonds were issued on discount, company receives the face value less discount amount
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: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $271,860. What amount of…
A: When a bond is redeemed, the difference between carrying value and redemption value.
Q: If $1,000,000 of 8% bonds are issued at 98 1/2, the amount of cash received from the sale is
A: Cash received from the sale of bonds = Face value of bonds x rate at which bonds are issued
Q: Bonds with a face value of P5.0 million, carrying a stated interest rate of 12%; payable…
A: Solution: The best explanation for the excess amount received over face value is that "the bonds…
Q: Palestine, Inc. issued JOD2,000,000 par value, 7% convertible bonds at 99 for cash. The net present…
A: Bonds are a form of debt or loan issued by the company on which company has to make regular interest…
Q: Wildhorse Co. issued $1150000 of 8%, 5-year bonds at 106, which pay interest annually. Assuming…
A: Issue price = 106 Cash receipts from issue of bonds = 1150000 x 106% = $1219000 Par value of bods =…
Q: If $500,000 par value bonds with a carrying value of $499,000 are redeemed at 103, the company will…
A: When company redeemed the issued bond then gain/loss needs to record by the company is the…
Q: Bonds Payable has a balance of $1,200,000 and Premium on Bonds Payable has a balance of $18,750. If…
A:
Q: For each of the following situations, calculate the amount of bond discount or premium, if any. gray…
A: When the bonds are issued at a price lower than the face value of the bond, they are said to be…
Q: Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. If the…
A: Introduction: Bonds payable are recorded when a company issues bonds to make income. Because it is a…
Q: Bonds Payable has a balance of $880,000 and Premium on Bonds Payable has a balance of $9,680. If the…
A: Amount paid on redemption = Face value of bonds x redemption price /100 = $880,000 x 102/100 =…
Q: On January 1, 20x1, an entity issues 9%, 3-year, P3,000,000 bonds at a price that reflects a yield…
A: Where a Bond is issued at a price lower than it's face value it is said to be issued at a discount.
Q: Bonds Payable has a balance of $867,000 and Premium on Bonds Payable has a balance of $9,537. If the…
A: Assumed Bonds has a face value = 100 Bonds Payable has a balance = 867000 Number of Bonds =…
Q: 3. On January 1, 20x1, Allan Co. purchased P400,000 bonds for P392,000. The bonds mature on January…
A: We will calculate the gain by comparing present value of bond and interest with the cost of purchase…
Q: Moab Corporation sells $600,000 of 7%, 20-year bonds for 98 on January 1. Interest is paid on…
A: Issue value = Face value of bonds x Issue price /100 = $600000 x 98/100 = $588,000
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: Bryce has $1,500,000 of bonds outstanding. The unamortized premium is $21,600. If the company…
A: Total redemption value = Face value of bonds x redemption price/100 = $1500000 x 101/100 =…
Q: A $501,000 bond issue sold for $483,000. Therefore, the bonds: Multiple Choice Sold for the $501,000…
A: Bonds- A bond is a contract in which the issuer commits to pay periodical coupons in exchange for…
Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: _____ If $150,000 face value bonds are issued at 104, the proceeds received will be $104,000
A: Bonds: These are the financial instruments issued by the company to raise debt from the open market.
Q: Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If…
A: Introduction:- The following basic information as follows under:- Bonds Payable has a balance of…
Q: Suppose serials bonds with face value of P1,000,000 scheduled to be retired on December 31, 2024 are…
A: Here in this question, we are required to calculate the gain/(Loss) that needs to recorded at…
Q: Bonds Payable has a balance of $896,000 and Premium on Bonds Payable has a balance of $9,856. If the…
A: Redemption of Bonds: The process of repaying the sale amount of bonds to bondholders at the time of…
Q: On January 1, 20x1, SPITEFUL MALICIOUS Co. issued 1,000, P4,000, 10%, 3-year bonds for P3,807,852.…
A: Answer 6) Bonds issued at: Par Premium Discount Methods used in regards to amortize the bond…
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: The difference between the par value received on bonds issued and the premium on bonds payable…
Q: 1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should…
A:
Q: Journalize the redemption of the bonds
A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…
Q: A $540,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $465,000.…
A: General Journal Debit Credit Bonds Payable $540,000 Discount on Bonds Payable $35,000 Gain…
Q: If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select…
A: The bonds can be issued at discount or premium depending on market rate of interest.
Q: 1. Bonds sold at a discount - Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: If $1,051,000 of 12% bonds are issued at 102 1/2, The amount of cash received from the sale is:
A: Amount of Cash Received = Face value of Bond*Bond Quote/100
Q: If $571,000 of 9% bonds are issued at 98, the amount of cash received from the sale is a.$519,610…
A: Cash received from sale of bonds represents the amount after showing the effect of discount or…
Q: Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If…
A: If the bond is redeemed at 102, then its redeemed at a premium of 2% from its face value.
Q: If $325,000 of 9% bonds are issued at 96, what is the amount of cash received from the sale? Select…
A: Issued at 96 means that the bonds are issued at 96% of face value of bond.
Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…
A: Total amount paid for bond redemption = $300,000×104% =$312,000
Q: QUESTION 9 Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of…
A: Bonds means an instrument acknowledging as debt due from one party to another party.
Q: A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of…
A: Bonds are kind of loan taken which is paid after certain period of time. Face value of bonds…
Q: On January 1, 2021, CCC Company acquired 13% bonds in the face amount of P1,300,000 to be…
A: Solution-1 Cash Flow at the time of maturity = P1300000 Interest (Annuity) annually = (P1300000…
Q: anuary 1, 2007, FFF Inc. issued its 10 percent bonds in Face amount of P1,500,000. They mature on…
A: Unamortized bond discount is the difference between a bond's face value and the amount actually paid…
Q: d mature on December 31, 2031. ABC uses the effective interest method of amortizing bond discount.…
A: When bonds are issued a price less than its face value , there is a discount on bonds payable. The…
Q: On January 2, 2001, Northern Co. issued 9% bonds in the amount of ₱500,000, which mature on January…
A: As per the equity method, the value of the financial liability is recognized at fair value and that…
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: Bonds Payable has a balance of $909,000 and Premium on Bonds Payable has a balance of $9,999. If the…
A: Option d is the answer.
Q: he entry to record the redemption would include a
A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…
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If bonds of $1,000,000 with unamortized discount of $10,000 are redeemed at 98, the gain on redemption of bonds is $10,000.
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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?Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000
- 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?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 $1.267Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?
- Willoughby 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?Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare 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. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 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 amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.OShea Inc. issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000. From this information, we know that the market rate of interest was ________. A. more than 6% B. less than 6% C. equal to 6% D. cannot be determined from the information given.
- 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. $15,000Waldron 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.Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?