A company received cash proceeds of 206,948 on a bond issue with a par value of 200,000. the difference between par value and issue price for this bond is recorded as a ?
Q: A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…
A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…
Q: Record the issue of bonds with a par value of $270,000.
A: The journal entries are prepared to keep the record of daily transactions of the business.
Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $271,860. What amount of…
A: When a bond is redeemed, the difference between carrying value and redemption value.
Q: A company issued 8%, 10-year bonds with a face amount of $71 million. The market yield for bonds of…
A: Market Value of Bond: It is the present value of the future cash inflow generated from the bond.
Q: Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If…
A: Redemption of Bonds: The process of repaying the sale amount of bonds to bondholders at the time of…
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948
Q: a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold.…
A: Bond is a fixed income security which is issued by the company to raise money. Company needs to pay…
Q: Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If…
A: The objective of this question is to calculate the gain or loss on redemption of bonds. The company…
Q: If the Bonds Payable account has a balance of $700,000 and the Discount on Bonds Payable account has…
A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…
Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…
A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…
Q: The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on…
A: Bond's carrying amount = Bonds payable - Discount on bond payables…
Q: Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA
A: If company bonds mature, then the cash and bond liability decrease by 50000. In statement cash flow…
Q: balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing…
A: Answer : Bonds payable balance = $1,000,000 Discount on bonds payable = $10,000
Q: The face or par value for bonds is the amount paid to bondholders at maturity and is usually equal…
A: Bonds are the liabilities of the company which is issued to raise the funds required to finance the…
Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…
A: Proceeds from redemption = $294,000 * 98/100 = $288,120
Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…
A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
Q: The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:…
A: (a)The bonds were issued at premium.The bonds were issued at high price ($2,125,000) than the face…
Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: 1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should…
A:
Q: If bonds are issued at 103, this means that: OA) The bond rate of interest is 10.3% of the market…
A: The bonds are the Financial instruments that are issued to raise the money from the market or…
Q: A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The…
A: Bond is a financial instrument issued by a company in order to raise funds. In exchange for funds,…
Q: Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $12,500. If…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: If $1,000,000 of 8% bonds are issued at 102.5, the amount of cash received from the sale is
A: Cash Received from the sale of Bond : The total cash received from the sale of bond to the company…
Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…
A: Note: When market or effective rate of interest is less than the interest rate on bonds then bonds…
Q: Reynolds Co issued $87 million face amount of 11.00% bonds when market interest rates were 10 90%…
A: Solution: Bonds are issued by a company to borrow funds for the business. It is having a par value,…
Q: Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If…
A: Step 1: Calculate the carrying amount of bonds payable on the redemption rate.
Q: A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of…
A: Bonds are kind of loan taken which is paid after certain period of time. Face value of bonds…
Q: 1,000,000 of 8% bonds are issued at 102 3/4, the amount of cash receive
A: The amount of cash received from the sale is $1,027,500
Q: A company issued $93,000 bonds at 108. If the total interest payments during the term of the bond…
A: The interest expense over the bond term is calculated as total interest payments less bond premium.…
Q: If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has…
A: The correct option is A.$828,000 Please see the next step for the solution
Q: he entry to record the redemption would include a
A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…
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- A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference petween par value and issue price for this bond is recorded as a: O Credit to Interest Income O Credit to Premium on Bonds Payable O Credit to Discount on Bonds Payable O Debit to Premium on Bonds Payable O Debit to Discount on Bonds Payable1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should ABC calculate the net proceeds to be received from the issuance? * a. Discount the bonds at the stated rate of interest. b. Discount the bonds at the stated rate of interest and deduct bond issuance costs. c. Discount the bonds at the market rate of interest. d. Discount the bonds at the market rate of interest and deduct bond issuance costs.a. Assume that the market interest rates were slightly higher than 9% when the bonds were sold. Would the proceeds from the bond issue have been more than, less than, or equal to the face amount? Explain. b. Independent of your answer to part a, assume that the proceeds were $14,820,000. Use the horizontal model (or write the journal entry) to show the effect of issuing the bonds. C. Calculate the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2013, assuming that the discount of $180.000 is amortized on a straight-line basis.
- A company issued 6%, 15-year bonds with a face amount of $75 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to nearest whole dollar.) X Answer is complete but not entirely correct. Table values are based on: Cash Flow Interest Principal n = i = Price of bonds $ $ 30 3.0% Amount ›› Present Value 2 × $ 75 X $ 44 X 31 X 75A company issued 8%, 10-year bonds with a face amount of $71 million. The market yield for bonds of similar risk and maturity is 9%. Interest is paid semiannually. At what price did the bonds sell? (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in whole dollars. Round final answers to the nearest whole dollar.)If $1,000,000 of 8% bonds are issued at 102.5, the amount of cash received from the sale is
- On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 20 year term and a stated rate of interest of 7%. Which of the following shows how the payoff of the bond liability will affect Residence’s financial statements on December 31, Year 20 (the maturity date)? Balance Sheet Income Statement Statement of Cash Flows Assets = Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA + NA NA − NA = NA (50,000) IA B. NA = NA + NA NA − NA = NA (50,000) FA C. 50,000 = 50,000 + NA NA − NA = NA 50,000 IA D. (50,000) = (50,000) + NA NA − NA = NA (50,000) FAIf the bonds payable account has a balance of $900,000 and the discount on bonds payable account has a balance of $72,000, what is the carrying amount of bonds? A. $828,000 B. $900,000 C. $972,000 D. $580,000A company issued 7%, 20-year bonds with a face amount of $82 million. The market yield for bonds of similar risk and maturity is 8%. Interest is paid semiannually. At what price did the bonds sell? Note: Do not round intermediate calculations and round you final answer to nearest whole dollar. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Price of bonds ........
- Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 97 1/2 what is the amount of gain or loss on redemption?Reynolds Co. ISsued $87 million face amount of 11.00% bonds when market interest rates were 10.90% for bonds of similar risk and other characteristics. Required: 0. How much interest will be paid annually on these bonds? (Enter your answer In dollars, not milons of dollars.) b. Were the bonds issued at a premium or discount? c. Will the annual Interest expense on these bonds be more than, equal to, or less than the amount of interest paid each year? a Annual interest payment b. Bonds issued C. Annual interest expense will beIf bonds are issued at 103, this means that: The bond rate of interest is 10.3% of the market rate of interest. B) A $2,000 bond sold for $2,060.00. OA) OC) A $1,000 bond sold for $103. ○ D) The bonds sold at a discount.