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- 5.On January 1, 2012 Zesto Company received $1,032,880 for $1,000,000 face amount, 12% bonds, a price that yields 10%. Interest is payable semi-annually every June 30 and December 31. Interest expense for the year ended December 31, 2012 is a.$123,946 b.$120,000 c.$103,288 d.$102,87053.On January 1, 2020, ABC purchased bonds with a par value of $ 700,000 for $ 666,633. The nominal interest rate on the bonds was 12% and the market interest rate was 14%. The bonds pay interest on June 30 and December 31. What will be the interest income that ABC will report in its 2020 income and expense statement? Select one: a $ 93,655. b. $ 84,000. c. $ 46,664. d. $ 42,000.
- If $1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale isN7. AccountOn January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2022? a.) P44,266 b.) P50,000 c.) P53,118 d.) P60,000
- On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. The bonds were priced at $142.00 million (plus accrued interest) to yield 12%. The price if issued on January 1 would have been $139.25 million. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024?20. On December 31, 2011, Cey Company had outstanding 10%,P1,000,000 face amount convertible bonds payable maturing on December 31, 2014. Interest is payable on June 30 and December 31. Each P1,000 bond is convertible into 50 shares of P10 par value. On December 31, 2011, the unamortized premium on bonds payable was P60,00O. On December 31, 2011, 400 bonds were converted when Cey's share had a market price of P24. Cey incurred P4,000 in connection with the conversion. No-equity component was recognized when the bonds were originally issued. What is the share premium from the issuance of shares as a result of the bond conversion on December 31, 2011? a. 176,000 b. 220,000 c. 276,000 d. 280,000Zhang Company, an IFRS company, sold $7,000,000 of 6%, 3-year bonds on January 1, 2022. The bonds pay interest each December 31. It cost the company $30,000 in bond issue costs. The bonds were sold at par. What is the effective interest rate for the bonds? Group of answer choices 8.52% 5.84% 6.16% 6.14%
- H1. AccountOn January 2, 2014, a calendar-year corporation sold 12% bonds with a face value of $200,000. These bonds mature in six years, and interest is paid semi-annually on June 30 and December 31. The bonds were yield 10%. What was the issue price of the bond? a. $217,726.50 b. $183,232.31 c. $200,000.00 d. $344,000.00 e. None of the aboveMf2. On January 1, 2022. Sarasota Company purchased 12% bonds having a maturity value of $430,000 for $462,600.36. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2022, and mature January 1, 2027, with interest receivable December 31 of each year. Sarasota elected the fair value option for this held-for-collection investment. Prepare any entry necessary at December 31, 2022, assuming the fair value of the bonds is $464,400. (Round answers to 2 decimal places, e.g. 5,275.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)