4. On July 1, 2024, Howe Co. issued 300 of its 10%, $1000 face value bonds at 99 plus accrued interest. The bonds aredated on April 1, 2024 and mature on April 1 2032. Interest is payable semi-annually on April 1 and October 1 of eachyear. What amount of total cash did Howe receive on July 1, 2024?(A) $289,500(B) $297,000(C) $300,000(D) $304,500(E) None of the above.

The objective of the question is to calculate the total cash received by Howe Co. on July 1, 2024,…

Answered: 4. On July 1, 2024, Howe Co. issued 300…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Phoenix Corporation will report on its balance sheet at the end of 2017? A. $200,000 B. $206,000 c. $204,800 d. $207,200
Blossom Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a)
Marigold Corp. issued 3, 300 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. interest is paid each january 1. Prepare the journal entry to record the sale of these bonds on January 1, 2022.
1. Santos SA issues $300,000 in bonds dated January 1, 2022, due in five years with 9 percent interest payable annually on January 1. At the time of issue, the market rate for such bonds is 9percent.a) Illustrate the bond in line as principal invested and interest rate.b) Check the value of bound is it sold at par value.c) Register accounting transactions on journal entries.
The following section is taken from Crane's balance sheet at December 31, 2024. Current liabilities Interest payable Long-term liabilities Bonds payable (9%, due January 1, 2028) (a) (b) $41,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (c) 510,000 Journalize the payment of the bond interest on January 1, 2025. Assume that on January 1, 2025, after paying interest, Crane calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2025, to accrue the interest on the remaining bonds.
how to calculate this? please elaborate
On October 1, 2020, ABC Company issued P1,000,000 face value bonds paying 12% interest every January 1 and July 1 of each year. These bonds were issued at 95 plus accrued interest and will mature after 5 years. What amount of cash did ABC Company receive on January 1, 2020?
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.
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?
On September 1, 2016, Sam's Shoe Co. issued $440,000 of 7% bonds. The bonds pay interest semiannually on January 1 and July 1 of each year. The bonds were sold at the face amount. How much cash did Sam's receive upon sale of the bonds? a. $354,667 b. $364,000 c. $378,000 d. $350,000
Sunland Company sold $\$ 3, 170, 000, 9 \ %, 10 $ - year bonds on January 1, 2025. The bonds were dated January 1, 2022 5 and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. (a) Prepare amortization table for issuance of the bonds sold at 103 for the first three interest payments. Prepare amortization table for issuance of the bonds sold at 97 for the first three interest payments.

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