MC34 On December 31, 2019, the liability section of Texas Company'sstatement of financial position included bonds payable of P10million and unamortized premium onP180,000. Further verification revealed that these bonds wereissued on December 31, 2017 and will become due on December31, 2027.December 31.bonds payable ofInterest at 12% is payable every June 30 andOn April 1, 2020, Texas retired P4,000,000 of these bonds at 97plus accrued interest.How much was the total amount of cash paid for the retirementof bonds on April 1, 2020?P3,950,000P4,000,000P4,040,000P4,180,000a.b.С.d.

Interest accrued on April 1, 2020 for bonds redeemed = Face value of bonds redeemed x rate of…

MC34 On December 31, 2019, the liability section of Texas Company's statement of financial position included bonds payable of P10 bonds payable of million and unamortized premium on P180,000. Further verification revealed that these bonds were issued on December 31, 2017 and will become due on December 31, 2027. December 31. Interest at 12% is payable every June 30 and On April 1, 2020, Texas retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the total amount of cash paid for the retirement of bonds on April 1, 2020? P3,950,000 P4,000,000 P4,040,000 P4,180,000 a. b. С. d.

MC34 On December 31, 2019, the liability section of Texas Company's statement of financial position included bonds payable of P10 bonds payable of million and unamortized premium on P180,000. Further verification revealed that these bonds were issued on December 31, 2017 and will become due on December 31, 2027. December 31. Interest at 12% is payable every June 30 and On April 1, 2020, Texas retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the total amount of cash paid for the retirement of bonds on April 1, 2020? P3,950,000 P4,000,000 P4,040,000 P4,180,000 a. b. С. d.

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

Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing $ ? c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing $ ?
The December 31, 2021 balance sheet of Metlock Co. included the following items: 7.5% bonds payable due December 31, 2029 $2,880,000 Unamortized discount on bonds payable 115,200 The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.)On April 1, 2020, Wolfe retired $576,000 of these bonds at 101 plus accrued interest.Prepare journal entries to record the above retirement.
The Bridgeport Company issued $230,000 of 13% bonds on January 1, 2020. The bonds are due January 1, 2025, with interest payable each July 1 and January 1. The bonds were issued at 97. Prepare the journal entries for (a) January 1, (b) July 1, and (c) December 31. Assume The Bridgeport Company records straight-line amortization semiannually. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not Indent manually.) Date Jan. 1, 2020 July 1, 2020 Dec. 31, 2020 ✓ Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Cash Debit 100 Credit 230,000
Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On July 31, 2028, Seaview Company called the bonds at 101. Assume annual interest payments. Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2028. No explanation is required. Requirement 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2028. (Assume bonds payable are amortized using the straight-line amortization method.) First, complete the sentences below. The carrying amount of the bonds payable at issuance (July 31, 2025) is issuance amounts to $ 6,000 $ 194,000. The discount on the bonds at The carrying amount of the bonds payable at July 31, 2028 is $ 195,200 Requirement 2. Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July…
On January 1, 2021, Solo Inc. issued 1,300 of its 8%, $1,000 bonds at 97.7. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $51,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2021, balance sheet?
Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period select an opening section name enter a balance sheet item $enter a dollar amount select between addition and deduction : enter a balance sheet item enter a dollar amount $enter a subtotal of the two previous amounts
Stinson Corporation issued $520,000 of 5%, 10-year bonds payable on March 31, 2019. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually. Stinson Corporation's year-end is March 31. Review the following amortization table for Stinson's bonds: Using the amortization table for Stinson's bonds, answer the questionsbelow: Semiannual Interest Interest Discount Discount Bond Interest Date Payment Expense Amortization Balance Carying Amt Mar 31, 2019 $ 135,283 384,717 Sep 30, 2019 $ 13,000 $ 17,312 $ 4,312 130,971 389,029 Mar 31, 2020 13,000 17,506 4,506 126,465 393,535 Sep 30, 2020 13, 000 17,709 4,709 121,756 398,244 1 How much cash did Stinson Corporation borrow on March 31, 2019?How much cash will the company pay back at maturity on March 31,…
X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Decrease inCarrying Value CarryingValue 01/01/2021 124,380 12/31/2021 15,000 14,304 696 123,684 12/31/2022 15,000 14,224 776 122,907 12/31/2023 15,000 14,134 866 122,042 12/31/2024 15,000 14,035 965 121,076 12/31/2025 15,000 13,924 1,076 120,000 What is the annual market interest rate on the bonds? Multiple Choice 5.8%. 6.3%. 11.5%. 12.5%.
The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2020, included 12% bonds having a face amount of $15 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 14%.Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2021, Twin Digital retired the bonds at 104 ($15.6 million) before their scheduled maturity. Required:1. & 2. Prepare the necessary journal entries by Twin Digital on July 1, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
The Pearl Company issued $240,000 of 10% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Pearl's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a) (b) (c) Date Account Titles and Explanation Debit Cred
Carla Corporation issued $396,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025, and mature January 1, 2028, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Carla's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) No. (a) (b) (c) Date May 1, 2025 Dec 31, 2025 July 1, 2025 Account Titles and Explanation Debit Credit SUPPO
Alvin Jackson Co. issued $10,000 of bonds on January 1, 2021. The bonds pay interest semi-annually. This is a partial bond amortization schedule for the bonds. Payment Cash Effective interest Decrease in balance Outstanding balance 9,080 1 400 409 9 9,089 2 400 409 9 9,098 3 400 409 9 9,107 4 400 What is the interest expense on the bonds for the year ended December 31, 2022? A. $800. B. $819. C. $818. D. $809.