Eddie Corporation issues $1,500,000 of 8% bonds at 105. What is the amount of cash Eddie would receive from the sale? a. $1.425,000 b. $1,080,000 c. $1,575,000 d. $1,000,000 e. None of the above.
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- A company has bonds outstanding with a parvalue of $100,000. The unamortized premium on these bonds is $3,500. The company calls these bonds at a price of $102,000, :the gain or loss on retirement is loss $3,500 AO -gain $1,500 B O -gain $3,500.CO loss $1,500.DOIf $500,000 par value bonds with a carrying value of $499,000 are redeemed at 103, the company will record a $13,970 gain. $1,497 gain. $16,000 loss. $14,970 loss.A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,700. The company calls these bonds at a price of $97,000 the gain or loss on retirement is: Multiple Choice $0 gain or los. $3,000 gain. $1,700 gain. $3.000 loss. $1,700 loss.
- If the bonds payable account has a balance of $100,000 and the premium on bonds payable account has a balance of $10,000, what is the carrying amount of the bonds? $110,000 $100,000 $90,000 There is no way to determine.PB3. 13.2 Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?If $1,093,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is __
- Clabber Company has bonds outstanding with a par value of $118,000 and a carrying value of $108,100. If the company calls these bonds at a price of $104,000, the gain or loss on retirement is: Multiple Choice $9,900 gain. $9,900 loss. $4,100 gain. $14,000 loss. $4.100 loss.A company paid $33,800 to acquire 11% bonds with a $36,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive when the bonds mature equal:1. ABC, Inc. issued P1,000,000, 10% bonds to yield 8%. bond issuance costs were P10,000. How should ABC calculate the net proceeds to be received from the issuance? * a. Discount the bonds at the stated rate of interest. b. Discount the bonds at the stated rate of interest and deduct bond issuance costs. c. Discount the bonds at the market rate of interest. d. Discount the bonds at the market rate of interest and deduct bond issuance costs.
