On June 30, 2014, Jazz Company had outstanding 8%, P3,000,000 face amount, 15 year bonds maturing on June 30, 2011. Interest is payable on June 30 and December 31. The unamortized balance on June 30, 2014 in the bond discount was 135,000. Jazz reacquire all these bonds at 94 on June 30, 2014, and retire them. How much gain should Jazz report on this early extinguishments of debt? A. 45,000 B. 75,000 C. 105,000 D. 180,000

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: Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, 2018, Doty Co. redeemed its 15-year bonds of $7,000,000 par value for 102. They were…

A: Redmeption price = Bond Value * 102/100 Cash redeemed = 92/100 * bond Value

Q: On April 1 2017 , Seminole Company sold 15,000 of it 11%, 15-year, $1000 face value bonds at 97.…

A: Journal entries are recording of the transaction in the accounting journal in a chronological order.…

Q: Company P purchased $100,000 of subsidiary Company S’s bonds for $96,000 on January 1, 2015, when…

A:

Q: On June 31, 2016, Oriental Company had outstanding 8% P 1,000,000 face amount, 15-year bonds…

A: Bond can be defined as financial instruments which is a source of capital for the companies as well…

Q: Ignoring interest, compute the gain or loss. Loss on redemption   $   Ignoring interest, record…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Available-for-sale securities are one of the types of investments held for the purpose of resale of…

Q: On October 1, 2006, Brick purchased 100 of the $1,000 face value, 8% bonds of Ice, Inc., for…

A: Purchase price, including interest 1,17,000 Less:-  accrued interest -2000 Carrying Value…

Q: On September 1, 2017, Pearl Company sold at 102 (plus accrued interest) 3,100 of its 6%, 10-year,…

A: Cash =  (3100*1000*102%) + (3100000*6%*3/12) = $ 3208500 Bonds payable = 3100 * 1000 = $ 3100000…

Q: On January 1, 2016, Trader Company issued its 8%, 4-year convertible debt instrument with a face…

A: Working note: Computation of equity and financial liability component of financial instrument:

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: On January 1, 2020, Linen Corp. issued $450,000 (face value), 10%, ten-year bonds at 103. The bonds…

A: Bond issued= $450,000, 10% at 103 Callable price=105 Repurchased bonds= $100,000 at 96 Interest…

Q: On January 1, 2016, Gilberto Company purchased 9% bonds with a face amount of P4,000,000 for…

A: Interest Revenue = Carrying value of Bond x Market rate to yield interest  Note : Coupon rate is…

Q: d? Prepare an amortization schedule related to the bond investment in Marlin. How does Martin’s…

A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will…

Q: On January 1, 2016, Star Company received P107,720 for a P100,000 face amount, 12% bond, a price…

A: One of the source used by the business entities to meet their financial requirements is issue of…

Q: On January 1, 2016, Bonita Industries issued $4,000,000 of its 10% stated rate bonds for $4,475,661…

A: Extinguishment of debt  Liability is eradicated from company's balance sheet under extinguishment of…

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Since, we answer upto three sub-parts we shall answer first three. Please submit a new question…

Q: Schwer, Inc. issued $500,000 of 10%, 15-year bonds at 95 on July 1, 2012. Interest is payable…

A: Bonds may be issued at discount when the interest on the bonds is higher than the market interest…

Q: Rumpi Company purchased $50,000 of 7 percent bonds of Evermistress Corporation on January 1, 2015,…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: The December 31, 2017, balance sheet of Ming Inc. included 12% bonds with a face amount of $107…

A: Solution: Journal entry is as under: Particulars Debit Credit Bond payable 107000000   Loss…

Q: On January 1, 2014, Buknoy Company purchased serial bonds with face value of P3,000,000 and stated…

A: To find the presert value of bond , we need to discount the future cash flow to find out the present…

Q: On January 1, 2002, Brownies Corp. issued 1,000 of its 10%, P1,000 bonds for P1,040,000. These bonds…

A: Solution:- Given, Brownies Corp. issued 1000 of its 10%, P1,000 bonds for P1,040,000 Bonds were to…

Q: On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate…

A: Market interest rate is the yield to maturity of the bond. It is the rate which the invetsors will…

Q: AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds…

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: On December 31, 2017, ABC Company had P1,000,000 of short term notes payable due February 7, 2018.…

A:

Q: Several years ago Brant, Inc., sold $850,000 in bonds to the public. Annual cash interest of 9…

A: a.

Q: Please provide a more complete solution on this problems: Patton Company purchased $400,000 of 10%…

A:

Q: On June 30, 2020, Kikiam Inc. had outstanding 8%, P3,000,000 face amount, 15-year bonds maturing on…

A:

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of…

A: Compare the amount paid for the bonds and book value then we get the loss To calculate book value,…

Q: Several years ago Brant, Inc., sold $900,000 in bonds to the public. Annual cash interest of 9…

A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…

Q: In order to finance Plywood Company’s planned expansion, 10%, P5,000,000 face value bonds were…

A: The gain or loss on the early extinguishment of debt would be computed by deducting the amount from…

Q: Assuming the bonds are classified as Trading investment, prepare the journal entries on…

A: Journal entries refers to the official book of a company which is used to record the day to day…

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, 2015, Glover Corporation issued $2,400,000 of 5-year, 8% bonds at 95. The bonds pay…

A: a). Face value of bond = $2,400,000 (24,000 bonds)                                   = $120,000…

Q: On December 31, 2015, Ariana Grande Corporation issued 20-year, nonconvertible bonds of P5,000,000…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On July 31, 2010, Honedge Co. issued P1,000,000 of 10%, 15 year bonds at par and used a portion of…

A: Issuance of Bonds Bond is considered to be the debt instrument which are utilized by the companies…

Q: On January 1, 2016, Covid Corp., purchased debt securities for cash of P765,540 to be held as…

A:

Q: Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On June 30, 2013, Riverbed Limited issued 11.75% bonds with a par value of $761,000 due in 20 years.…

A: Bond: It is a monetary instrument issued  by  corporation  and interest is paid to investors.…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…