The 12% bonds payable of Amman Co. had a carrying amount of €166,400 on December 31, 2018. The bonds, which had a face value of €160,000, were issued at a premium to yield 10%. Amman uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2019, several years before their maturity, Amman retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is

Q: Presented below are two independent situations. (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: How much will be the gain (loss) on sale assuming all the bonds were sold on June 30,2020 at 99 plus…

A: Calculating carrying value of the bond on June 30, 2020. Year Beginning carrying value of bond…

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: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

A:

Q: 9. on July 1, 2018, Joalin Company purchased Heyoon Company ten-year, 8% bonds with a face amount of…

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

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104, Issuance costs amounted…

A: Face value of the bond: $250,000 Life of the bond: 10 years Issue price: $250,000 x 104/100 =…

Q: On April 1, 2019, Padayon Co. acquired a 5-year bond with a face value of P1,200,000 and stated…

A: Under ACM bo d should  be  measured  at fairvalue after adjusting  transaction costs

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On January 1, 2019, AB Company purchased P1,000,000, 12% bonds of C Company for a price that yields…

A: Debt Investment: It is fixed-interest generating securities  to earn a steady interest income and…

Q: On January 1, 2018, lab Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: Face value of bond, on January 1, 2018 = P 4,000,000 Carrying value of bond on January 1, 2018 = P…

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 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…

A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

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 August 1, 2021, Excel Company purchased at par P5million bonds with stated interest rate of 12%…

A: Lets understand the basics. We all know that bond can be purchased at the issue time or at mid of…

Q: On the first day of 2021, Rooney Inc had outstanding $1,000,000 of 9% bonds with a book value of…

A: Explanation: We should compare the amount we pay for the bonds and the book value of the bonds:…

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Following is the journal entry for Interest Revenue on July 1, 2018.

Q: On June 1, 2019, Leni Company acquired a 5-year, 10%, P1,000,000 face value bonds for P920,000. The…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amoun of…

A: The Purchase price of the bond = Present Value of Interest  + Present value of Bond at Maturity.…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Ending balance of Bond Investment = Beginning Balance + Interest Accrued at Effective rate -…

Q: On January 1, 2018, LAB Co. acquired P4,000,000 of 12% face value bonds at P3,767,000 to be held…

A: If a company buys a financial instrument for $150,000 that has a face amount of $200,000 and which…

Q: At the beginning of January 2021, Luminiscence Company purchased ten-year bonds with a face amount…

A: Cash Flow at the time of maturity = P5000000 Interest (Annuity) semi-annually =…

Q: On January 1, 2021, Ocean Corporation issued 3,000 of its 5-year, P1,000 face value, 11% bonds dated…

A: Bond Valuation The issue of bond either in par value or in discount or in premium as well.  Bond…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: When bond of other entity is purchased as an investment, it can be reported on the balance sheet…

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

Q: On January 1, 2022, Isabel Company purchased bonds with face amount of P8,000,000 for P7,679,000 to…

A: The question is based on the concept of Financial Instruments. Financial Assets are investment…

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, 2019, Wintergreen, Inc, issued $150,000 of 7 percent, 10-year bonds at a price of…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2021, EXPERT EFFORT Company purchased serial bonds with face value of P3,000,000 and…

A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A journal entry is used to document any commercial transaction in the accounting records of a…

Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…

A: Market rate of interest = 10%/2 Market rate of interest = 5%

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: On July 1, 2019, YYY Company paid P1,198,000 of 10% 20-year bonds with a face amount of P1,000,000.…

A: Solution- Calculation of Carrying value:   Interest paid = 1,000,000*10%*6/12 = 50,000   Interest…

Q: On December 1, 2017, Cone Company issued its 9%, $450,000 face value bonds for $520,000, plus…

A: Number of bonds=Total valueIssue price=$450,000$100=4,500

Q: (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated…

A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…

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: On January 1, 2021, Golden Company acquires $400,000 of ABC Company's 10- year, 6% bonds at a price…

A: Introduction Carrying value of bond refers to face value of bond plus unamortized premium, during…

Q: On June 1, 2017, HIJ Company purchased bonds with a face amount of 3,000,000 to be held to maturity.…

A: Bond Amortization Table It  is the  table  which shows the amount of interest expense/revenue,…

Q: Wildhorse Co. received proceeds of $724000 on 10-year, 8% bonds issued on January 1, 2019. The bonds…

A: Interest: The money charged by the lender for using lender’s funds is referred to as interest. So,…

Q: On

A:

Q: ell Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2018. The bonds…

A: Bonds- Bonds are the written debt of the company on which interest is paid at a predetermined rate…

Q: On January 1, 2019, Assarain Concrete issued bonds with a face value of OMR 100,000 at 97, due in…

A: Total discount on bonds = Face value of bonds x (Par value - issue price) / par value = OMR 100,000…

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

A:

Q: On July 1, 2016, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for…

A: Effective interest rate method of amortization is a process of amortizing premium on bond or…

Q: VICO Company had outstanding a 7%, 10-year bond payable with face amount of P5, 000, 000. The bond…

A: Interest expense for 2019 = Carrying value of bonds x yield rate x no. of months/12 = P5,250,000 x…

Q: On January 1, 2020, Lucas Company purchased P1,200,000, 14% bonds of Andres Company for P1,381,934,…

A: Financial asset held for earning contractual cash flow and to held the asset till maturity, is…

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Bond is a debt insturment, which are issued to raise fund for the business. Bond is an interest…

Q: On January 1, 2019, Tigreal company issued 5,000 of its 5-year, P1,000 face value, 11% bonds dated…

A: Carrying value of a bond refers to the net final value computed between the bond's face value adding…

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A: