July 1, Aloha Co. exercises a call option that requires Aloha to pay $244,800 for Its outstanding bonds that have a carrying value of 48,200 and par value of $240,000. The company exercises the call option after the semlannual interest is pald the day before on ne 30, cord the entry to retire the bonds.

July 1, Aloha Co. exercises a call option that requires Aloha to pay $244,800 for Its outstanding bonds that have a carrying value of 48,200 and par value of $240,000. The company exercises the call option after the semlannual interest is pald the day before on ne 30, cord the entry to retire the bonds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $537,828. The journal entry to record the second interest payment using the effective interest method of amortization is:
Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On April 30, 2021, Balboa recalls the bonds at the call price of 105 plus accrued interest. Journal entries for 2021 would include:
On the first day of the fiscal year, a company issues a $8,300,000, 10%, 8-year bond that pays semiannual interest of $415,000 ($8,300,000 × 10% × ½), receiving cash of $9,267,140. Journalize the first interest payment and the amortization of the related bond premium, round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select -
Assume that on July 1, Jerome, Inc., paid $100,000 to buy Potter's 8 percent, two-year bonds with a $100,000 par value. The bonds pay interest semiannually on December 31 and June 30. Jerome intends to hold the bonds until they mature. Complete the necessary December 31 entry to record receipt of interest by selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Sheridan Corporation retires its $540000 face value bonds at 104 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $560223. The entry to record the redemption will include a O debit of $1377 to Loss on Bond Redemption. O credit of $21627 to Premium on Bonds Payable. O debit of $21600 to Premium on Bonds Payable. O credit of $1377 to Loss on Bond Redemption.
Please fill pictures out: Tyrell Company Issued callable bonds with a par value of $16,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $16,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option Is exerased after the semannual interest Is paid the day before on June 30. Record the entry to retire the bonds under each separate situation 1. The bonds have a carrying value of $13,500. 2 The bonds have a carrying value of $17,000.
On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $335,819. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Expense $10,831.90; debit Discount on Bonds Payable $1,418.10; credit Cash $12,250,00 Debit Interest Expense $13,668.10, credit Discount on Bonds Payable $1,418.10, credit Cash $12,250.00 Debit Interest Expense $12,250.00, credit Cash $12.250.00 Debit interest Expense $13,668.10; credit Premium on Bonds Payable $1,418.10; credit Cash $12,250,00 Debit interest Payable $12.250.00; credit Cash $12.250.00
A company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of $109,870. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31. Prepare a straight-line amortization table for these bonds. (Round your answers to the nearest dollar amount.) Semiannual Period-End Unamortized Discount Carrying Value 1/01/2021 6/30/2021 12/31/2021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/2024 12/31/2024
On January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is payable semiannually on January 1 and July 1. What amount should Huff report as interest expense for the six months ended June 30, 2022? a.) P44,266 b.) P50,000 c.) P53,118 d.) P60,000
Buckingham Star Company Ltd has a single production process for which the following have been estimated: £ Material receipts and inspection cost 31,200 Power cost 39,000 Material handling cost 27,300 Three products, Alpha, Beta, and Gamma are produced by workers, who perform a number of operations on material blanks using hand-held electrically powered drills. The workers have a wage rate of £4 per hour. The following budgeted information has been obtained for the period ending 31 December 2018 Alpha Beta Gamma Production quantity (units) 4000 3000 1600 Batches of material Data per product unit 20 10 32 Direct material (square metres) 8 12 6 Direct material (£) 10 6 12 Direct labour (minutes) 48 40 120 Number of power drill operations 12 6 4 Overhead costs for material receipt and inspection, process power…
On July 1, Aloha Co. exercises a call option that requires Aloha to pay $326,400 for its outstanding bonds that have a carrying value of $329,600 and par value of $320,000. The company exercises the call option after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds.
On the first day the fiscal year, a company issue a $437,000, 7%, 10years bond that pays semiannual interest of $15,295 ($437,000 x 7% x 1/2), receiving cash of $458,900. Journalize the entry for the first interest payment and amortization of premium using the straight-in line method. If an amount box does not require an entry, leave in blank. ____________ _____ _______ _____________ ______ ________