Need help with this financial accounting question An investment in bonds with a book value of$145,200 is sold for $139,500. What is the gain or losson the sale of the bond investments?

Step 1: Define Gain or Loss on Sale of BondsA Gain or Loss on Sale of Bonds is determined by…

Answered: An investment in bonds with a book…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds...

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What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds Payable?
The principal of a bond is ________. A. the person who sold the bond for the company B. the person who bought the bond C. the interest rate printed on the front of the bond D. the face amount of the bond that will be paid back at maturity
1. Trading bond investments are reported at A. Face amount B. Amortized cost C. Maturity value D. Fair value 2. Accrued interest of bonds that are purchased between interest dates A. Is recorded as a loss on the sale of the bonds B. Increases the amount a buyer must pay C. Is ignored by both the seller and the buyer D. Decreases the amount a buyer must pay
Which of the following does not impact the calculation ofthe cash interest payments to be made to bondholders?a. Face value of the bond.b. Stated interest rate.c. Market interest rate.d. The length of time between payments.
The face or par value for bonds is the amount paid to bondholders at maturity and is usually equal to $1,000. True False
Johansen Company issued a bond at a discount. Which of the following shows how the issuance of the bonds affects the financial statements? Balance Sheet A. C. D. Assets = Liabilities + Multiple Choice O O OO Option A Option C Option B Option D Stockholders' Equity n/a n/a n/a Revenue n/a n/a n/a n/a Income Statement Expense + n/a + n/a = Net Income Statement of Cash Flows +OA +FA +FA +OA n/a n/a
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?
Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) \table[[,, \table[[Cash], [Proceeds]], \table[[Discount or], [Premium]]], [a., Pear, Inc. issued $190,000 of 10-year,8 percent bonds at 103., Premium,], [b., Apple, Inc. issued $92,000 of five-year, 12 percent bonds at 99.,, Discount], [c., Cherry Co. issued $196,000 of five-year, 6 percent bonds at 1031/4., Premium,], [d., Grape, Inc. issued $39,000 of four-year, 8 percent bonds at 99.00., Discount,]] Required Compute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at a premium or discount. (Round your answers to nearest dollar amount.) a.…
When bonds are retired at maturity, ________. A. the carrying value always equals the face value B. the carrying value equals the face value plus the unamortized premium or less the unamortized discount C. the bondholders are paid the face value plus the unamortized premium or less the unamortized discount D. the entry to retire the bonds may include a gain or loss on retirement of bonds
When bonds are issued at a premium and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is: Select one: a. Less than the interest expense b. Equal to the interest expense c. Greater than the interest expense d. More than if the bonds had been sold at a discount e. Less than if the bonds had been sold at a discount
interest payment for bonds is calculated using the face value of the bonds and the __________ A. market value B. market interest rate C. stated interest rate D. original cost
How do you calculate the price of a bond? It is: The sum of the present value of the face amount and the value of credit default swaps The sum of the future value of annuity of interest and the fair value of its inventory The sum of the present value of annuity of interest and the face amount of the bond The sum of the current value of the issuing corporation of accounts receivables None of the above.

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An investment in bonds with a book value of $145,200 is sold for $139,500. What is the gain or loss on the sale of the bond investments?