22A company has an investment in 7% bonds with a par value of $180,000 that pays interest on October 1 and April 1. The amount of Interest accrued on December 31 (the company'syear-end) would be:McGrawHillMultiple Choice$2,100.$3,150.$1,050.$6,300.$12,600.< Prev22 of 86BUU‒‒‒Next >Return to question3:24 P12/1/201

Interest = Principal x Rate x Time

Answered: A company has an investment in 7% bonds…

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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What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $103,769 and the interest is to be paid semiannually? debit cash, $100,000, and credit bond payable $100,000 debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769 debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000 debit cash $103,769 and debit discount on bonds payable $3,769, and credit bonds payable $100,000
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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?
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A company has an investment in 7% bonds with a par value of $180,000 that pays interest on October 1 and April 1. The amount of Interest accrued on December 31 (the company's year-end) would be: Multiple Choice O $2,100, $3,150. $1,050. $6,300. $12,600.