Bee Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds is 10%. Interest is payable annually on December 31. The company uses effective-interest method in amortization. At the end of the second year, Bee, Inc should report unamortized bond discount of: a. P 164,700 b. P 171,300 c. P 158,430 d. P 154,830

Q: On January 1, a company issued and sold a $320,000, 5%, 10-year bond payable, and received proceeds…

A: Bonds payable means liability incurred in business. There can be long term bonds or short term…

Q: Hambelton Ltd. issued $3,750,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on…

A: The objective of the question is to determine the price at which the bonds were issued and to…

Q: ista inc issued 00, 9% bonds for $7455000. The market rate of interest for these bonds is 8%…

A: The bonds are issued at a premium, when the market rate is lower than the coupon rate of bonds…

Q: Swifty Company issued $576,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On January 1, a company issued and sold a $393,000, 6%, 10-year bond payable, and received proceeds…

A: Introduction: When company issues bonds at discount, then the discount amount can be amortized over…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…

A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…

Q: On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for…

A: Cash payment of interest ($7,300,000 * 9%)$657,000Less: Interest Expense ($7,774,500 *…

Q: On Janua

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: On January 1, Cullumber Inc. issued $4200000, 9% bonds for $3943800. The market rate of interest for…

A: Lets understand the basics. When bond is issued for more than or less than its face value then…

Q: ome -) () () Statement of Cash Flows (2,000) FA (100) FA/(1,900) OA (2,000) OA (2,000) OA

A: Interest expense is Interest payment less amortization on bonds as the bonds were issued on a…

Q: 2. On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: As per the IFRS 9, the transaction cost incurred on the issue of bond will be reduced from proceeds…

Q: Hambelton Ltd. issued $3,300,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on…

A: An amortization schedule gives a clear picture of the bond's anticipated cash flows. It helps…

Q: Oak Branch Inc. issued $100,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Given, Face value = $100,000 Coupon rate = 5% Issue price = $106,983 Market rate = 4%

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A:

Q: On December 31, Caper, Inc., issued $500,000 of 8%, 9-year bonds for $440,000, yielding an effective…

A: The bond discount is amortized and the carrying value is increased over the bond tenure. The amount…

Q: On January 1, Cullumber Service Inc. issued $5304000, 9% bonds for $4975000. The market rate of…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…

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A: Effective interest rate refers to the income that an individual receives by holding onto the bond…

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Q: E9A. On March 1, 20XX, Minnow Corporation issued $600,000 of 10 percent, five year bonds. The…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On January 1, Marigold Corp. issued $5200000, 11% bonds for $5538000. The market rate of interest…

A: Premium unamortized means the premium amount which is yet to be amortized on the bonds. It is…

Q: am. 138.

A: Step 1: Understanding of amortization method for discount or premium on issue of bonds:- When bond…

Q: On January 1, 2008, P5,000,000, 5-year, 10% bonds, were issued for P4,850,000. Interest is paid…

A: Bonds are form of debt or loan that is being issued by the business, on which regular interest…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays…

A: A Issue price  $823,800 B Face value  $784,000 C=A-B Premium on bonds payable  $39,800 D No.…

Q: What is the entry to record the first semiannual interest payment, and the amortization of the bond…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…

A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…