Nicholas Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a discount of $56,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is $672,000. $644,000. $700,000. $728,000.

Q: Garland Company received proceeds of $131600 on 10-year, 6% bonds issued on January 1, 2018. The…

A: Carrying value of a bond is the value of bond on a given date after deducting the discount and…

Q: 1. A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: ACCT 102

A: Cash received in first year means cash received from the sale of bonds. Cash paid in the first year…

Q: On January 2, 2020, a calendar-year corporation sold 4% bonds with a face value of $2640000. These…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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: Irving Inc. sold bonds with a $50,000 face value, 10% interest, and a 10-year term at $52,000. What…

A: Given, Face value = $50,000 Issue price = $52,000 Coupon rate = 10%

Q: Cramer Company sold 5-year, 8% bonds on October 1, 2011. The face amount of the bonds was $100,000,…

A: Interest expense = Interest accrued - Amortization of premium where, Accrued interest = Face value…

Q: Nicholas Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a…

A: Total discount = $56,000 Annual Amortization of discount = Total discount / No. of years = $56,000 /…

Q: A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000…

A: Bonds: It is a debt instrument issued by the government or the organisation to the holders.

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: Ionia Wuju Blademakers Corp. had an outstanding P5,000,000 of 12% bonds with interest payable on a…

A: Answer to Question: Loss on Redemption of bonds: P450,000 Redemption Price : P52,50,000…

Q: Diana Inc. issued $300,000 of its 7%, 5-year bonds for $287,844 when the market rate was 8%. The…

A: Bonds are the debt security which is issued by government or corporates for arranging the funds.…

Q: On June 30, 2002, Free Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on…

A: Carrying Amount of Bond = Face value of Bond - (Unamortized Bond discount + Unamortized  bond cost )…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

A:

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of…

A: The Net Present Value(NPV) is the difference between the present value of cash inflow and the…

Q: Purple & Orange, Inc., sold $700,000 of bonds on an interest payment date at 102. Assumingthe…

A: Firstly we shall calculate the issue price of the bonds. Then we shall calculate the premium on…

Q: A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…

A: The cash flow diagram is the representation of the company’s cash flow graphically. The minus sign…

Q: At the beginning of the current year, QUATRO Company purchased 5-year bonds with a face amount of ₱…

A: Purchase price of the bonds = Present value of principal + Present value of interest payments where,…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000 for…

A: A sinking fund is a means of repayment of funds raised through a bond issue by periodic payment to a…

Q: Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of…

A: Annual interest = Face value of the bonds at the time of issue x Annual interest rate…

Q: Bad account inc. sold $10000000, 5 year, 3%, semi-annual bonds for $9124794 on Jan 1, 2022. From its…

A: Interest expense is 456239.7   Amount paid to Lawyers would not affect the carrying amount.

Q: CityMall Inc had an outstanding P5, 000,000 of 11% bonds (interest payable July 31 and January 31)…

A: Given that, Outstanding 11% bonds value = P5000000 New issue of 10% bonds value = P7000000 Total…

Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: pia Inc. issued bonds for $375,000 that were redeemable in 5 years. They established a sinking fund…

A: The bonds are paid by the monthly payments that are to be accumulated over the period of time by…

Q: deposit

A: The government and the corporation raise finance by issuing bonds. The borrower is obligated to pay…

Q: Herman Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2018. The…

A: Total discount = Face value of bonds - Proceeds from bonds = $200000 - 188500 = $11,500 Straight…

Q: A corporation issues for cash $1,000,000 of 10%, 20 year bonds, interest payable annually, at a time…

A: The bonds are issued on discount when the market rate is higher than the issued rate.

Q: Three years ago American Insulation Corporation issued 10%, $800,000, 10-year bonds for $770,000.…

A: Calculate the discount on bond as follows: Discount on bond = face value - issue price Discount on…

Q: Red & Blue Company sold bonds at 97 on an interest payment date for $500,000. Assuming thebonds…

A: Firstly we shall calculate the issue price of the bonds. Then, we shall calculate the discount on…

Q: 63,) A company issued a P3,000,000, 6-year bonds dated January 1, 2021, with a stated interest rate…

A: First question: PhP 107,798.74 Second question: PhP309,984

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: Bond is defined as a debt instrument or debt security. The bond issuer raises capital by issuing…

Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…

A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…

Q: Several years ago, Soriano Corporation sold bonds with a face value of $1,000,000 to the public at a…

A: The amount of interest expense, interest payment, and discount or premium amortization of a bond in…

Q: Eli Inc. issued $100,000 of 10% annual, 5-year bonds for $103,200. What is the total amount of…

A: Premium on Bonds issue = Issue value - Face value of bonds = $103,200 - $100,000 = $3,200

Q: Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse.…

A: Introduction: A bond is a fixed payment obligation issued by corporations or government entities to…

Q: A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The…

A: A bond is a type of debt instrument issued by companies in order to raise funds. The issuer pays…

Q: Alan Smith Fitness gym has 200,000 of 20 year bonds payable outstanding. These bonds had a discount…

A: Carrying cost of bond = Bond face value - Amortized discount + unamortized premiums

Q: Boyd Co. produces and sells aviation equipment.  On the first day of its fiscal year, Boyd Co.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On June 30, 2002, Free Company had outstanding 8%, P1,000,000 face amount, 15-year bonds maturing on…

A: Solution: Carrying value of bond on June 30,2002 = P1,000,000 - P35,000 - P10,000 = P955,000

Q: On January 1, 2014 Victory Falls Company issued $2,100,000 in bonds that mature in 5 years. The…

A: Journal: Journal is the method of recording monetary business transactions in chronological order.…

Q: Marin Enterprises issued 4%, 8-year, $2,000,000 par value bonds that pay interest semiannually on…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: a corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for…

A: Face Value = 12,000,000 Coupon Rate = 15%  Interest Rate = 12%  Semi-annual coupon rate  = Coupon…

Q: A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The…

A: Bond is a fixed income-based instrument, which contains low amount of risk. Organization issues…

Q: On January 1, 2012, One Company issued P5,000,000, 8% serial bonds, to be repaid in the amount of…

A: Solution: Serial bonds are the bonds that are structured in such a way that a portion of bond…

Q: Pinder Co. produces and sells high-quality video equipment. To finance its operations, Pinder issued…

A: Present value of the bond is calculated by adding the Present value of the amount to be paid on…

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

A: As posted multiple independent questions we are answering only first three sub parts kindly repost…

Q: Lee Corporation has 10-year, 12% bonds payable of $136,000 that were sold on January 2, 20X1 at a…

A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.