A. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? 24 B. Were they issued at a discount or a premium?

Q: On part b for the premium on bonds payable, what numbers were multipled to get $3,186.97?

A: Premium on bonds payable is defined as the excess amount paid over the face value. The premium on…

Q: How to record bonds selling at discount, premium, and at par. Why are bonds recorded at discount,…

A: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and discount.…

Q: North Corp.'s December 31, 2009 inventory contains 20,000 units. Forecasted sales for 2010 are…

A: PRODUCTION BUDGET Production Budget is a Forecast of the Production for the Budgeted Period of an…

Q: 9. Interest expense recognized each period on zero-coupon bonds, sold at a discount, is equal to the…

A: Bonds In simple term Bonds which are issued the government authority to raise the funds from the…

Q: 14. If bonds are redeemed on maturity date, any premium or discount * a. Is carried forward and…

A: When bonds are issued at premium or discount, its discount or premium will be amortized over the…

Q: interest payment for bonds is calculated using the face value of the bonds and the __________   A.…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Bond premium should be reported in the statement of financial position A. along with other premium…

A: A premium on bonds means investors are satisfied with a rate of interest lower than the rate stated…

Q: 10. The bond interest expense reflected on the income statement should reflect an amount based on…

A: The bond interest expense reflected on the income statement should reflect on amount based on the…

Q: Which of the following is true with regards to the accrued interest on bonds payable that are sold…

A: The accrued interest expense is the interest due for payment but not paid yet.  The accrued interest…

Q: An investor purchases bonds with a face value of $100,000. Payment for the bonds includes (a) a…

A: IF AN INVESTOR PURHASES BONDS, THEN IF THE BONDS ARE PURCHASED AT PREMIUM THEN PREMIUM PAID WILL…

Q: 16. Under the straight-line amortization method, interest expense on a bond sold at a premium is…

A: Bonds are a type of borrowings made by the business, on which periodic interest payment needs to be…

Q: 3. If bonds are issued at 101.25, this means that a.a $1,000 bond sold for $1,012.50. b.the bonds…

A: If a bond is issued more than 100, then it is called as premium. This bond is issued at premium,…

Q: When bonds are purchased between interest dates, the accrued interest should be a. debited to the…

A: Accrued Interest It is the unpaid interest  which is earned by a bondholder  since last interest…

Q: q3. For accounting purposes, interest expense recognized on bonds payable should be based on the A.…

A: The discount or premium on bonds is calculated on the basis of effective rate of interest.

Q: the carrying amount of bonds redeemed is more than the redemption price, the difference is recorded…

A: Bonds are financial instruments or debt securities that are issued by corporations, governments, and…

Q: The carrying value of Bonds Payable equalsa. Bonds Payable plus Discount on Bonds Payable.b. Bonds…

A: Answer:   Option b

Q: To calculate a gain or loss on redemption of a bond, you compare a. The market interest rate to the…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells football…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: The carrying value on bonds equals Bonds Payablea. minus Premium on Bonds Payable.b. plus Discount…

A: Answer: d. minus Discount on Bonds Payable.

Q: A corporation sold an issue of 20-year bonds, having a total face value of P10M for P 9.5M. The…

A: Data given: FV=P 10M r=16% (payable semiannually)=16%/2 =8% i=12% (compounded semiannually)=12%/2=6%…

Q: If bonds issue at a discount, is the stated interest rate less than, equal to, or more than the…

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Question 45: When a bond is sold for more than its face value, it is said to have been sold at…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: . When is interest expense more than interest paid? a. when bonds are sold at a premium b. when…

A: When a bond's coupon rate is higher than the market value, it sells at a premium. When the coupon…

Q: 6. When is interest expense more than interest paid? a. when bonds are sold at a premium b. when…

A: Conditions of premium or discount arises when either interest expense is more or interest paid is…

Q: 12. How would the amortization of discount on bonds payable affect the carrying amount of bond and…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: