$939,000 to yield 10%. Alquds uses the effective-interest method of amortizing bond discount. Interest is payable annually on June
Q: On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on…
A: Formula: Adjusted unamortized bond premium at December 31, 2009 = Total bond premium - Amortization…
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A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…
A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…
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A: The bonds payable are issued at discount when market rate is higher than the coupon rate of bonds…
Q: On July 1, 2013, AC Corporation issued one thousand of its 10%, P1,000 callable bonds for P960,000.…
A: Total discount on bonds = Face value of bonds - issue value = P1000000 - 960000 = P40,000
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A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…
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Q: On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…
A: Given information is: On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds…
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A: The bonds are the financial instruments for the business to raise money from the investors. The…
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A: Carrying value is present value of future cash flows discount @5%(10/2)
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A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…
Q: On January 1, 2016, United Corp. issued its 9% bonds in the face amount of P 2,000,000, which mature…
A: Bonds is an investment security in which investors invest amount in exchange of regular interest…
Q: Bonds with a stated interest rate of 9% and a face value totaling $626,000 were issued for $651,040…
A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…
Q: On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
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A: 1. Compute amount of bonds report in its balance sheet as shown below: Working note: Compute…
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, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…
A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…
Q: On January 1, 2021, Green company issued P1,000,000, 12% bonds for P1,065,000, a price that yields…
A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…
Q: On January 1, 2006, Okon Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: On January 1, 2025, Blue Company issued S1, 100, 000 face value, 7 %, 10-year bonds at $1, 180,961.…
A: Bonds payable are long-term liabilities that are issued for a fixed term with a fixed periodic…
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A: Step 1: Introduction to Bonds Payable:Like other liability accounts, the bonds payable account has a…
Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…
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Q: On 2/1/2012, the Union Company issued an amount of 1,500,000 dinars in the form of bonds with a…
A: Callable bonds are those bonds which can be called by the company, at any time prior to maturity,…
Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…
A: Calculate the present value of the principal amount as shown below:
Q: On June 30, 2021, Moran Corporation issued $13.5 million of its 6% bonds for $12.1 million. The…
A:
Q: Romania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1,…
A: 1. Record the bond issue. Date Accounts & Explanation Debit Credit Jan 1, 2012 Cash $…
Q: On January 1, 2006, Ward Company issued its 9% bonds in face amount of P4,000,000, which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…
A: The bonds are the financial instruments that are used to raise money from the market or investors.…
Q: On December 31, 2018, Interlink Communications issued 6% stated rate bonds with a face amount of…
A: Interest payment = Face value of bonds x rate of interest x time = $100 million x 6% = $6 million
Q: On May 1, 2016, Bench Co. issued 11% bonds in the face amount of P 1,000,000 that mature on May 1,…
A: Solution: Face amount of bond= P1,000,000 Premium on issue of bond = P62,000 Issue price of bond =…
Q: On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on…
A: To answer above question, following bond amortization table will be compiled till 30 June, 2006:…
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A: When the bonds are issued at more than their par value it means that it has been issued at the…
Q: On January 1, 2016, Bonita Industries issued $4,000,000 of its 10% stated rate bonds for $4,475,661…
A: Extinguishment of debt Liability is eradicated from company's balance sheet under extinguishment of…
Q: On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on…
A: Please see Step 2 for required information.
Q: On September 30, 2016, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…
A: Determine present value of annuity amount (interest).
Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…
A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800
Q: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue,…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…
A: Prepare journal entries as follows: Result:
Q: On January 1, 2016, Mary Co. issued its 10% bonds in the face amount of P 1,500,000 which mature on…
A: A bond is a fixed-income investment vehicle that represents an investor's obligation to a borrower…
Q: On January 1, 2021, Loop Raceway issued 500 bonds, each with a face value of $1,000, a stated…
A: An early retirement of bonds is the process at which bonds are paid off before it reaches its…
Q: On June 30, 2021, the market interest rate is 5%. Champs Corporation issues $600,000 of 10%, 30-year…
A: Par value = $600,000Coupon rate = 10%Period = 30 yearsMarket rate of interest = 5%
Q: On January 1, 2021, QuantumQuarry Co. issued a 5-year bond with a face value of $500,000. The bond…
A: Bonds/Notes are the instruments/ securities issued by the companies to raise funds for the company…
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- On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 8 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 7.25 percent, so the total proceeds from the bond issue were $101,959. Methodical uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Prepare the journal entry to record the bond issue, interest payments on December 31, 2018 and 2019, interest and face value payment on December 31, 2020 and the bond retirement. Assume the bonds are retired on January 1, 2020, at a price of 102.On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on January 1, 2026. The bonds were issued for P3,405,000 to yield 8%, resulting in bond premium of P405,000. Solis uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2021, the carrying value of the bonds should be a.) P3,405,000 b.) P3,377,400 c.) P3,364,500 d.) P3,304,500On January 1, 2021, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entry to record the bond issue, interest payments on December 31, 2021 and 2022, interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired on January 1, 2023, at a price of 103. Complete this question by entering your answers in the tabs below. Req 2 to 5 Prepare a bond amortization schedule. (Round your answers to the nearest whole dollar. Make sure that the Carrying value equals face value of the bond…
- On January 1, 2006, Carrow Company issued its 10% bonds in the face amount of P1,000,000 that mature on January 1, 2016. The bonds were issued for P886,000 to yield 12%, resulting in bond discount of P114,000. Carrow uses the interest method of amortizing bond discount. Interest is payable July and January 1. For the year ended December 31, 2006, Carrow should report bond interest expense atOn January 1, 2015, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 with a rate of 8% and market rate of 5.5%, resulting in bond premium of $405,000. Solis uses the effective - interest method of amortizing bond premium. Interest is payable quarterly. Record the appropriate journal entries if you knew that they made all the interest payments for 2015 and prepare the amortization schedule. [Hint: watch out for the payment dates].On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $1,000, a statedinterest rate of 5% paid annually on December 31, and a maturity date of December 31, 2017. Onthe issue date, the market interest rate was 6 percent, so the total proceeds from the bond issuewere $583,950. Loop uses the straight-line bond amortization method and adjusts for any roundingerrors when recording interest in the final year.Required:1. Prepare a bond amortization schedule.2. Give the journal entry to record the bond issue.3. Give the journal entries to record the interest payments on December 31, 2015 and 2016.4. Give the journal entry to record the interest and face value payment on December 31, 2017.5. Assume the bonds are retired on January 1, 2017, at a price of 98. Give the journal entries torecord the bond retirement.
- On May 1, 2023, ACT Company issued a 4-year, P3,000,000 face value bonds with a stated rate of 10%. The effective interest rate for similar bonds is 12%. Interest on the bonds is payable semi-annually on October 30 and April 30. ACT Company uses the calendar year as its reporting period. What is the carrying amount of the bonds on December 31, 2023? A What is the interest expense for the year 2024?B. What is the Discount on Bonds Payable to be reported in the Statement of Financial Position on December 31, 2025?On December 31, 2016, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2046. Interest is payable annually on each December 31, beginning in 2017. Determine the price of the bonds on December 31, 2016, assuming that the market rate of interest for similar bonds was 7%.On July 1, 2019, Pen Co. issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The bonds were issued to yield 10%. The bonds are dated July 1, 2019 and mature July 1, 2029. Interest is payable semiannually on January 1 and July 1. Using effective interest method, what amount of the bond discount should be amortized for the six months ended December 31, 2019?
- On June 30, 2020, Wayne's Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,920, a yield of 12%.Wayne uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31. #1. Set up a schedule of interest expense and premium/discount amortization under the effective-interest method. (Hint: The eff ective-interest rate must be computed.) (Please use excel & show all formulas)On January 1, 2013, Noble, Inc. issued 9% bonds in the face amount of $5, 000, 000, which mature on July 1, 2019. The bonds were issued for $4,695,000 when the market rate was 10.5 %, resulting in a bond discount of $305,000. Noble uses the effective - interest method of amortizing bond discount. Interest is payable quarterly. Record the appropriate journal entries and prepare the amortization schedule. Note, the company made all the interest payments 2013. Record the appropriate journal entries.On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. A. Assuming the bonds were sold at 108.732, what is the selling price of the bonds? $___________ B. Were they issued at a discount or a premium? __________
