A $501,000 bond issue sold for $483,000. Therefore, the bonds:Multiple ChoiceSold for the $501,000 face amount less $18,000 of accrued interest.Sold at a discount because the stated interest rate was higher than the market rate.Sold at a premium because the stated interest rate was higher than the market rate.Sold at a discount because the market interest rate was higher than the stated rate.

Bonds- A bond is a contract in which the issuer commits to pay periodical coupons in exchange for…

Answered: A $501,000 bond issue sold for…

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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1. On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%.The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of thebonds? Explain why the cash received from selling this bond is different from the $200,000 face value of thebond
An OMR 80,000 bond issue sold for 98. Therefore, the bonds were: Select one: a. Sold at a discount because the stated rate of interest was lower than the effective rate. b. Sold at a premium because the stated rate of interest was higher than the yield rate. c. Sold for the OMR 80,000 face amount less OMR 10,000 of accrued interest. d. Sold at a discount because the effective interest rate was lower than the coupon rate
Do not answer in image format. Maintain accuracy and quality in your answer. Answer completely.
Presented below is a partial amortization schedule for Discount Pizza.1. Record the bond issue assuming the face amount of bonds payable is $70,000. 2. Record the first interest payment. 3. Explain why interest expense increases each period.
A $516,000 bond issue sold for $477,000. Therefore, the bonds: Multiple Choice O Sold at a discount because the market interest rate was higher than the stated rate. O Sold at a discount because the stated interest rate was higher than the market rate. Sold for the $516,000 face amount less $39,000 of accrued interest. Sold at a premium because the stated interest rate was higher than the market rate.
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Jordan paid a full price of $1,059.04 each for 77 bonds. The purchase was between coupon dates, and accrued interest was $11.45 per bond. The flat price of each bond is closest to A. $1,047.59. B. $1,059.04. C. $1,070.49. D. $1,099.41.
33. Help me selecting the right answer. Thank you
Present entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.
If 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. $580,000
Kartel is planning to issue 360 bonds, each having a face amount of $1,000. Required: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par 2. Prepare the journal entry to record the sale of the bonds at a premium of $34,000. Record issuance of bonds at premium 3. Prepare the journal entry to record the sale of the bonds at a discount of $41,000. Record issuance of bonds at discount 4. Conceptual Connection: Assuming the stated rate is identical for the previous three scenarios, in which scenario is the market rate of interest (yield) highest? The bonds sell at
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A $501,000 bond issue sold for $483,000. Therefore, the bonds: Multiple Choice Sold for the $501,000 face amount less $18,000 of accrued interest. Sold at a discount because the stated interest rate was higher than the market rate.