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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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.
An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
A $500,000 bond issue on which there is an unamortized discount of $35,000, is redeemed for $475,000. What journal entry would you make to record the redemption of the bond? Make it below:
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.
A company issued $93,000 bonds at 108. If the total interest payments during the term of the bond adds up to $70,000, then the interest expense over the bond's term will be: Type your numeric answer and submit 85560 Correct Answer: v 62560.0
Waterway Ltd. issued a $1,062,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Waterway followed IFRS. Using 1.factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (Round present value factor calculations to 5 decimal places, eg. 1.25124 and final answers to 0 decimal places eg. 58,971.) Proceeds from sale of bond on bond Date $ $ Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.…
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.