Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If the issuing company redeems the bonds at 98, what is the amount of gain or loss on redemption?
Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…
A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…
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A: When a bond is redeemed, the difference between carrying value and redemption value.
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A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount along…
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A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…
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A: Journal Entry is CrDrCash account $102,500To Bonds Payable account$100,000 To Premium on bonds…
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948
Q: Your answer is correct. Prepare the journal entry to record the redemption of the bonds at maturity,…
A: Gain on redemption of bonds = carrying value of bond payable + unamortized premium on Bonds payable…
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Q: Items 1 to 4 are based on the following information. On December 31, 2020, Fuslie Company issued…
A: Bonds are financial instruments issued to raise funds in consideration of interest payment. Bonds…
Q: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000.…
A: The bonds are issued at discount when market rate is lower than the coupon rate of bonds.
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A:
Q: Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. If the…
A: Introduction: Bonds payable are recorded when a company issues bonds to make income. Because it is a…
Q: On January 1, 2025, Blue Company sold 11% bonds having Prepare a schedule of interest expense and…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
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A: Amount paid on redemption = Face value of bonds x redemption price /100 = $880,000 x 102/100 =…
Q: a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual…
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A: The company shares, bonds, debentures, etc., will be issued to meet the capital requirement of the…
Q: balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing…
A: Answer : Bonds payable balance = $1,000,000 Discount on bonds payable = $10,000
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A: Solution: Cash paid for bond interest = Bond interest expense - Increase in bond payable - Decrease…
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A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…
A: Proceeds from redemption = $294,000 * 98/100 = $288,120
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A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
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A: When bonds are redeemed at par, we will Credit Cash Account.
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A: Let’s assume the par value is $100 Total number of bonds issued would be : $11,84,000 / $100 i.e…
Q: A $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $472,000.…
A: Journal entry:A journal entry is simply a record of a transaction relating to business in your…
Q: Journalize the redemption of the bonds
A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…
Q: If bonds are issued at 103, this means that: OA) The bond rate of interest is 10.3% of the market…
A: The bonds are the Financial instruments that are issued to raise the money from the market or…
Q: A $515,000 bond issue on which there is an unamortized discount of $41,000 is redeemed for $473,000.…
A: Given that: Bond value = $515000 Unamortised discount = $41000 Redemption value = $473000
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A: Loss on redemption of bonds = Face value of bonds + Unamortized Premium on Bonds Payable - Cash paid…
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A: Bonds :Bonds is a long-term debt issued by the government and companies to raise funds for their…
Q: Redemption of Bonds Payable A $940,000 bond issue on which there is an unamortized premium of…
A: In the given question, the company amortized bonds having face value of $ 940,000 and unamortized…
Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If the issuing company redeems the bonds at 98, what is the amount of gain or loss on redemption?
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- If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer @ 3 4 5 6 7 W e у S g h j k V b n m alt ctrlA $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?
- What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…A $920,000 bond issue on which there is an unamortized premium of $65,000 is redeemed for $821,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.Accounting Bonds Payable has a balance of $957,000 and Discount on Bonds Payable has a balance of $9,570. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? a. $14,355 loss b. $9,570 gain c. $14,355 gain d. $9,570 loss
- A $545,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $472,000. Journalize the redemption of the bonds.If an amount box does not require an entry, leave it blank.A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for $1,051,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…Presented below is the partial bond discount amortization schedule for Pharoah Corp. Pharoah uses the effective-interest method of amortization. Interest Periods Issue date 1 2 Interest to Be Paid $117,000 117,000 Interest Expense to Be Recorded $124,981 125,380 Discount Amortization $7,981 8,380 Unamortized Discount Debit $100,383 92,402 84,022 Bond Carrying Value Credit $2,499,617 2,507,598 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation 2,515,978
- B4.7. Bower Company sold $100,000 of 20-year bonds for $95,000. The stated rate on the bonds was 7%, and interest is paid annually on December 31. What entry would be made on December 31 when the interest is paid? (Numbers are omitted.) a.Dr. Interest ExpenseCr. Bonds PayableCr. Cash b.Dr. Interest ExpenseCr. Cash c.Dr. Interest ExpenseCr. Discount on Bonds PayableCr. Cash d.Dr. Interest ExpenseDr. Discount on Bonds PayableCr. CashMegaHoldings Group, a significant conglomerate, and MiniFirm Ltd, its subsidiary, are involved in a financial transaction. Initially, on January 1, 2021, MegaHoldings Group issued bonds into the financial market. Two years later, on January 1, 2023, MiniFirm Ltd bought these bonds from the market entirely. The financial specifics for this transaction have been updated as follows: Bonds Nominal (Face) Value of the bonds: $1,000,000 Coupon Rate: 6% Initial Bond Release by MegaHoldings Group. Issuance Price: $807,470 Market Rate: 9% Bond Acquisition by MiniFirm Ltd. Acquisition Price: $1,064,632 Market Rate at Acquisition: 5% Please select the right consolidation entry [B] Multiple Choice Bonds Payable (B/P) 1,000,000 Interest Revenue 53.232 Loss on Retirement of Bonds 230,678 Discounts on Bonds Payable (B/P) 150,990 Investment in Bonds 1,057,864 Interest Expense 75,056
