If $1,000,000 of 8% bonds are issued at 98 1/2, the amount of cash received from the sale is
Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…
A:
Q: If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is 4 Oa.…
A: The bonds' face value is $100 per bond. Bonds are issued at a premium of $2.75 at a total issue…
Q: On April 1, 2021, Cain Company issued at 105 plus accrued interest 4,000 of its 9%, P1,000 face…
A: Interest =Bonds issued×Face value×Rate of interest×312=4,000×P 1,000×9%×312=P 90,000
Q: Bonds Payable has a balance of $952,000 and Premium on Bonds Payable has a balance of $10,472. If…
A: Redemption value of Bonds = $952,000 * 102% Redemption value of Bonds = $971,040 Premium on Bonds…
Q: On January 1, 2020, Kansas, Inc. issued ₱100,000, 10%, 10-year bonds when the market rate of…
A: A bond is issued by an entity in order to raise funds for the business. The issuer pays fixed…
Q: If $522,000 of 8% bonds are issued at 94, the amount of cash received from the sale is:
A: Bonds price is indicated as a percentage of par value and par value is assumed at 100. So price…
Q: On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on…
A:
Q: The Kaplan Group sold $200,000 of 10-year bonds for $190,000. The face rate on the bonds was 8% and…
A: Interest paid on December 31 = Face value of bonds x rate of interest x no. of years = $200000 x 8%…
Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…
A: Journal entries are prepared to record the financial and non financial transactions of the business…
Q: On July 1, 20x7, Morning Co. received P103,288 for ₱100,000 face amount, 12% bonds, a price that…
A: On 01.07.20x7, Morning Co. received 12% bonds = P103288 Face amount of bonds = P100000 Yield rate =…
Q: Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of…
A: Net liability at year end = face value of bonds - Discount on Bonds Payable
Q: On July 1, 2022, Mercurial Company issued at 98 plus accrued interest 2,500 of its 11%, P1,000 face…
A: Solution : Given Face value of bond =P1000 Issue price =98%…
Q: On April 1, 2011, ABC Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value…
A: Net cash received from bonds issue = Issue price of the bonds + Accrued interest on the bonds where,…
Q: Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000. Subsequently,…
A: Bond Bond is an instrument which are issued by the federal authority which is used by the corporate…
Q: On December 1 Spearmint, Incorporated, issuèd $450,000 of 9 percent, 3-year bonds for cash of…
A: A bond is a instrument containing the fixed interest payment obligation issued to the outsiders to…
Q: If $699,000 of 7% bonds are issued at 94, the amount of cash received from the sale is
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 20x1, Sina Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…
A:
Q: A company paid $33,800 to acquire 11% bonds with a $36,000 maturity value. The company intends to…
A: The cash proceeds from the bond that the company receives at maturity is the face value or maturity…
Q: On Jan. 1, 20x1, Yngwei Co. purchased 6,000,000, 10% bonds issued by Malsteen, Inc. for 5,116,292.…
A: Time value of money is the concept widely used by the management to determine the correct worth and…
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: A corporation issues $40,000,000 of 6% bonds to yield an effective interest rate of 8%. Was the…
A: SOLUTION- BONDS ARE DEBT INSTRUMENT ISSUED BY A BORROWER COMPANY TO IT LENDERS.BONDS ARE ISSUED AT A…
Q: Lidl Company issues 8%. 10-year bonds with a par value of BD100,000 that pay interest semiannually.…
A: Interest Expense is a financial charge payable by the issuer of fixed income securities or by the…
Q: Cronan, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds,…
A: a.
Q: Eddie Industries issues $834,000 of 8% bonds at 105, The amount of cash received from the sale is a.…
A:
Q: On January 1, 20x1, Silent Co. issued 1,000 bonds with face amount of P4,000 each for a total of…
A: Interest expense for 20x1 = ( issue value of bonds - transaction costs )x effective interest rate…
Q: -year term to maturity. The bonds sold at 96. Interest is payable in cash on December 31 of each…
A: Bonds are issued at discount or premium to the face value of bond and that discount is amortized…
Q: On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4.…
A: Annual Interest=Issue price×Stated rate=P 800,000×8%=P 64,000
Q: On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000.…
A: Interest expense in 2002 = Carrying amount of the note on initial recognition x interest rate x no.…
Q: The total interest paid on $46,000, ten-year, 6 percent bonds that are issued at 98 is a. $28,520.…
A: Total interest paid = Interest paid + Discount on bonds where, Discount on bonds = Face value of…
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: 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: Lexy Company issued P 10,000,000 of 10-year, 9% bonds on March 1, 2020 at 97 plus accrued interest.…
A: Given that, Lexy Company issued P 1,00,00,000 face value of bonds @ 97 each Plus accrued interest.…
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: Required Compute the cash proceeds from bond issues under the following terms. For each gase,…
A: The binds are the financial instruments used by the business to raise money from the market.
Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…
A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…
Q: On March 1, 2006, Cain Company issued at 103 plus accrued interest 4,000 of its 9% P1,000 face value…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: On April 1, 2006, Naruto Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face…
A: A BOND IS A DEBT SECURITY WHICH BORROWERS ISSUE BONDS TO RAISE MONEY FROM INVESTORS WILLING TO LEND…
Q: On July 1, 2020, Carol Company issued at 104, five thousand 10% bonds with face amount of P1,000 per…
A: In this question, we have been asked to calculate the carrying value of the bonds, for which we are…
Q: On January 1, 20x1, Sina Co. acquired 10%, ₱4,000,000 bonds for ₱3,807,853. The principal is due on…
A: In this question amount of coupon is to be find out. It can be find out by multiplying the coupon…
Q: A corporation issues $40,000,000 of 6% bonds to yield an effective interest rate of 8%. a. Was the…
A: Bonds: Bonds are the debt instruments issued by the borrower company to its lenders. Bonds are…
Q: On April 1, 2020, Greg Company issued, at 99. plus accrued interest, 4,000 8% bonds with face amount…
A: Given: No. of 8% bonds issued=4000Face value of bonds =P1000Bonds issued at =99 plus accrued…
Q: a).Prepare the journal entry to record the sale of these bonds on January 1, 2010.…
A: Face Value of bond = $1,000 Coupon rate = 8% x 6 ÷12 = 4% per period (semiannual) Term = 5 years x 2…
Q: Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual…
A: Correct answer is d Interest payment on bond is recorded as follows. Interest expenses Dr. Cash…
Q: $500,000 of 8%, 10 – year bonds were sold for $520,000 on January 1. The bonds require semiannual…
A: Solution: The entry to record the June 30 interest payment on the bonds will be as under: Date…
Q: Compute the cash proceeds from bond issues under the following terms. For each case, indicate…
A: Solution: Computation of cash proceeds from bond and same is issued on discount or premium is as…
Q: On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds.…
A: Solution: Accrued Interest for 2 months of Jan and Feb = 1000*1000*9%*2/12 = 15,000 Net cash…
Q: A ten-year bond was issued at par for $250,000 cash. This transaction should be shown on a…
A: Issue of Long term bonds is a source of financing business operations. Thus its a part of Financing…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?A company issued $100,000, 5-year bonds, receiving $97,000. What is the balance sheet presentation immediately after the sale?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?
- Charleston Inc. issued $200,000 bonds with a stated rate of 10%. The bonds had a 10-year maturity date. Interest is to be paid semi-annually and the market rate of interest is 8%. If the bonds sold at 113.55, what amount was received upon issuance?Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of interest expense over the life of the bonds?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
- On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. a debit to Bonds Payable for $100,000 B. a debit to Discount on Bonds Payable for $4,000 C. a credit to cash for $96,000 D. a credit to Discount on Bonds Payable for $4,000
- Gingko Inc. issued bonds with a face value of $100,000, a rate of 7%, and a 10-yearterm for $103,000. From this information, we know that the market rate of interest was ________. A. more than 7% B. less than 7% C. equal to 7% D. equal to 1.3%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?Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received $757,243. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds.