What is the amount of cash Essie.. Eddie Corporation issues $1,500,000 of 8%bonds at 105. What is the amount of cashEddie would receive from the sale?a. $1.425,000b. $1,080,000c. $1,575,000d. $1,000,000e. None of the above.

Step 1: Define Bond Premium and Discount:The companies issue bonds at prices higher or lower than…

Answered: Eddie Corporation issues $1,500,000 of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. A. $420,440 B. $457,000 C. $429,580 D. $493,560
Please help me. Thankyou.
Vikrambahi
Palestine, Inc. issued JOD2,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is JOD1,9000,000. What amount wilI Palestine assign to the equity feature of these bonds? Select one: O a. JOD99,000 O b. JOD80,000 O c. JOD100,000 d. JOD - 0-
Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption? a. $500 loss Ob. $15,500 gain Oc. $500 gain Od. $15,500 loss 43 0 77777777777
If $1,000,000 of 10% bonds are issued at 98, the amount of cash received from the sale is: O a. $987,500. Ob. $980,000. c. $1,000,000. Od. $975,000.
Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption? a.$13,644 loss b.$9,096 loss c.$9,096 gain d.$13,644 gain
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.
Eddie Industries issues $926,000 of 8% bonds at 102. The amount of cash received from the sale is a.$926,000 b.$1,000,080 c.$898,220 d.$944,520
Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems the bonds at 97 1/2 what is the amount of gain or loss on redemption?
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.
(a) Graben Co purchases a bond for $441,014 on 1 January 20X1. It will be redeemed on 31 December 20X4 for $600,000. The bond is held at amortised cost and carries no coupon. Required Calculate the valuation of the bond for the statement of financial position as at 31 December 20X1 and the finance income for 20X1 shown in profit or loss. Compound sum of $1: (1 + r)n Year 1 2 3 4 5 2% 4% 6% 8% 10% 12% 14% 1.0200 1.0400 1.0600 1.0800 1.1000 1.1200 1.1400 1.0404 1.0816 1.1236 1.1664 1.2100 1.2544 1.2996 1.0612 1.1249 1.1910 1.2597 1.3310 1.4049 1.4815 1.0824 1.1699 1.2625 1.3605 1.4641 1.5735 1.6890 1.1041 1.2167 1.3382 1.4693 1.6105 1.7623 1.9254

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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.