Items 28 to 30 are based on the following information.The following data were obtained from the financial records of OrphanBlack Company:15%, 10-year, Bonds Payable, dated January 1, 2019DebitCreditCash proceeds from issue onJanuary 1, 2019 of 1,000, P1,000bonds. The market rate ofinterest on the date of issuewas 12%Bond Interest ExpenseCash paid, 1/2/20Cash paid, 7/1/20Accrual, 12/31/20Accrued Interest on BondsBalance, 1/1/20Accrual, 12/31/20Treasury BondsRedemption price and interest todate on 200 bonds permanentlyretired on December 31, 2020a.b.75,00075,00075,000a. 75,000b. 135,000265,000C.d.1,172,044 1,172,04475,00075,000Balance28. What is the carrying value of bonds payable at December 31, 2020?831, 110c. 1,151,583921,266800,000d.29. What is the accrued interest on bonds at December 31, 2020?75,000150,000225,000C. 69,745d. 160,82675,000150,000265,00060,00052,50030. How much is the bond interest expense for the year ended December31, 2020?a.150,000b. 139, 174

The interest on bonds is calculated by adding cash paid during the year with accrual at the end of…

Answered: 28. What is the carrying value of bonds…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A4
18 A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are P4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2022 statement of financial position? 4,903,160.00 4903160 4,903,160 4903160
3
8. A bond issued with a par value of $200,000 and a carrying amount of $195,500 is retired at 98.5. The gain or loss on this transaction is: discont = 4500 Bond Payabl 200000 A) $3,000 loss. B) $3,000 gain. C) $1,500 loss. D) $1,500 gain. discout Debit 4500 199901.5
4. What is the carrying value of the bonds at the end of the second period (third number)? Premium 57,913.01 Carrying value (bonds) 432,913.01 Face Rate Market Rate Semiannual payments a. b. Cash Payment C. d. e. 14% 10% 0 or 1 2 or 3 4 or 5 6 or 7 8 or 9 Interest Expense Today Period #1 26,250.00 Period #2 26,250.00 Carrying value at end of second period (third number) ___________?__ 2. Disc. or Prem. Amort. 21,645.65 21,415.43 Disc. or Prem. 4,604.35 4,834.57 57,913.01 53,308.66 48,474.10 Face Value 375,000.00 375,000.00 375,000.00 Carrying Value 432,913.01 428,308.66 423,474.10
5. What is the carrying amount of the bonds payable on January 1,2020? A. 5,000,000 B. 4,750,000 C. 5,150,000 D. 4,550,000 E. None of the above
Qw. 27. On January 1, 2022, Pipestone Corporation issued a four-year, $40,000, 7% bond. The interest is payable annually each December 31. The issue price was $38,672 based on an 8% effective interest rate. Pipestone uses the effective-interest amortization method. The 2023 interest expense is closest to .
q11. Bonds with face value of P5,000,000 carrying a stated interest rate of 12% payable semiannually on March 1 and September 1 were issued on July 1. The total proceeds from the issue amounted to P5,200,000. The best explanation for the excess amount received over the face value is thatA. the bonds were sold at a premium.B. the bonds bear an interest rate lower than the market rate of interest at the date of bond issuance.C. the bonds were issued at face value plus accrued interest.D. the bonds were sold at a discount plus accrued interest.
Am. 389.
A $10,000 bond quoted at 106 would sell for: A. $10,106. B. $106. C. $10,000. D. $10,600.
5
Sh21

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS