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P 16
On 1/10/2019 ABC company issued a $120,000, 12%, 4 years bonds. The bonds pay interest quarterly on 1/1 , 1/4,1/7 , and 1/10. The bonds were issued for 136,293.25, since the market rate was equal 8%. On 1/5 / 2021 the company called 75% of its outstanding at 102²
Required: Based on the above given information, answer the following question:
(a) What is the amount of interest expense that must be presented on ABC" Company income statement for the year ended December, 31, 2019?
(b) What is the bond's carrying value that must be presented on the
(c) Prepare ALL the required
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- Complex Solution Company issues P2 M face value, 9%, 10-year bonds payable on December 31, 2023. Interest is paid semi-annually each June 30 and December 31. The bonds were sold at a price of 98. Complex uses the straight-line method of amortizing bond discounts and premium. **Compute for Amount of Bond Premium or Discount on December 31, 2023. **Bond Interest Expense for 2024 with respect to these bonds **Carrying Value of the bonds as of December 31, 2024.Hernandez company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. this price resulted in an effective-interest rate of 6% on the bonds. interest is payable annually on January 1. hernandex]z uses the effective-interest method to amortize bond premium or discount. prepare the journal entry to record the accrual interest and the premium amortization on December 31, 2022.You found the following ledger account balances of ABC Corporation: 12% Bonds Payable, due March 31, 2020 10/1/17 3,060,000 3/31/15 10,000,000 Premium on Bonds Payable 3/31/15 772,144 Bond Interest Expense 3/31/17 600,000 9/30/17 600,000 The bonds pay interest semiannually on March 31 and September 30. The bonds were issued on March 31 at a price yield 10%. On October 1, 2017, P3,000,000 of the bonds were redeemed for permanent cancellation at 102.
- 1->> O O O Baxter's Hamburgers issued 6%, 10-year bonds payable at 95 on December 31, 2024. At December 31, 2026, Baxder reported the bonds payable as follows: (Click the icon to view the bonds payable.) Requirement 1. Answer the following questions about Baxter's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2026? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? Requirement 2. Record the June 30, 2026, semiannual interest payment and amortization of discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date 2026 Jun. 30 Accounts and Explanation Debit Baxter's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Credit DA company issues $ 25150000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $ 24568662. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? (Round answer to 0 decimal place, e.g. 52.) $ 24599916 $ 25150000 $ 24584313 $ 24576370On January 1, 2024, a company issues a $3, 500, 000, 10%, 5-year bonds that pays semiannual interest on July 1 and January 1. Assume the bonds were sold at: A. 92% B. 102% Instructions: For A and B journalize the issuance of the bonds. Journalize the first and second interest payment, using straight line amortization. Compute the bond's price (present value) assuming the following market interest: A. 12.5% B. 8.5%
- ESPAÑOL INGLÉS FRANCÉS On July 1, 2021 ABC issued bonds dated March 1, 2021 and for their principal (maturity value) of 100,000. The contractual interest rate is equal to the effective interest rate of 14% (there is no premium or discount). On the issue date, the company recorded accrued interests with a credit to the interest payable account for $4,667. The bonds pay interest on March 1st and September 1st. How much will the interest expense account be debited for? to. $2,333 b. $9,333 C. $7,000 d. $4,667 MacBook Air V.QUESTION INFORMATION: Prior to 2022, a company issued bonds with a face value of $200,000, a stated rate of 10%, and a market rate of 12%. Interest is paid on December 31 of each year. As of December 31, 2022, the bonds had a carrying amount of $180,000. One year later, following the December 31, 2023 annual interest payment, the company called the bonds for 101% of face value. QUESTION TO ANSWER: The loss that the company records on the early extinguishment of the bonds is $_Related data of John-j Company: Face amount P2,550,000 Nominal rate 12% Effective rate 14% Date of issue January 1, 2021 Annual payment every December 31 P850,000 (Principal and interest) Interest is payable annually December 31 The entity used 3 decimal places for the PVF. Bonds mature on January 1, 2023 Required: What is the present value of the bonds payable on January 1, 2021?
- you had been given the following concerning ABC " Company CALLABLE bonds: Value Stated Rate Market Rate Maturity Interest Date Payment 1/7/2017 100,000 10% 6 5 Years Semiannual Selling Price 117,060 Based on the above given information Answer the following questions: if the company is using the effective interest method 1. if the company pays interest on July 14 and December 31 What is the amount of interest expense that must be presented on the company's income statement for the year 2018 ?· The Answer is: 2. At what value must the company present its bonds payable as 31/12/2018 ? The Answer is 3. If the company called 60 % of its outstanding bonds at 103 on 30/6/2019, then the company must Pay Cash with an amount of For the year 2019 the company must Present interest Expense with value of on income statement, and a of on the income statement asInstructions - what is the correct answer to the following question On July 1 2014 Spear Co issued 2,000 of its 10%, $1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2014 and mature on April 1, 2024. Interest is payable semiannually on April 1 and October 1. What amount did Spear receive from the bond insurance? a. $2,030,000 b. $2,000,000 c. $1,980,000 d. $1,930,000Sunland Company sold \(\$ 3, 170, 000, 9 \ %, 10 \) - year bonds on January 1, 2025. The bonds were dated January 1, 2022 5 and pay interest on January 1. The company uses straight-line amortization on bond premiums and discounts. Financial statements are prepared annually. (a) Prepare amortization table for issuance of the bonds sold at 103 for the first three interest payments. Prepare amortization table for issuance of the bonds sold at 97 for the first three interest payments.
