On January 1, 2016, Giant Company issued an 8% callable bond which has a par value of $200,000 for $180,000. The bond is callable at 106 any time after January 1, 2020. One-half of the bond was called back on January 1, 2021 when the unamortized discount had a balance of $4,000. Compute the amount of the gain or loss when the bond was retired on January 1, 2021

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: On March 1, 2020, Sandollar Inc. issued $90,000 of bonds at 105, paying 8% cash interest…

A: Journal: Recording of a business transactions in a chronological order.   As posted multiple sub…

Q: On July 01, 2019, SALUDO RAW SA'YO SI MAGELLAN SABI NI LOLA CO. received P1,032,880 for P1,000,000…

A: Solution: Interest expense for the six months ended December 31, 2019 = Issue price * 10% *6/12  =…

Q: On January 1, 2021, ABC Company issued its 9% bonds in face amount of P4,000,000, which mature on…

A: Discount on bonds issue = Face value of bonds - Cash proceeds from the sale of the bonds =…

Q: On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are…

A:

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent…

A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…

Q: Marin Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: Interest payment on June 30, 2021 = Face value of bonds x rate of interest x 6/12 = $70,000 x 7% x…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: On January 1, 2018, Global Sales issued $25,000 in bonds for $29,800. These are eight-year bonds…

A: Bonds are issued by a firm in order to raise fund. Bonds are purchased by investors and they get a…

Q: On January 1, 2021, Green company issued P1,000,000, 12% bonds for P1,065,000, a price that yields…

A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

Q: On January 1, 2021, Mawi Co. issued 1,000, P4,000, 12%, 3 years bonds for P4,198,948. Principal is…

A: The question is based on  concept of valuation of bond , value of bond is calculated as discounted…

Q: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

Q: On June 30, 2021, Moran Corporation issued $13.0 million of its 8% bonds for $11.7 million. The…

A: Lets understand basics. When bond is issued for less than its face value then it is known to be…

Q: Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance…

A: Bonds are the debts of an issuing company that is repayable after a specific period of time, it may…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $230,000 and a stated…

A: Given, Effective interest rate = 5% Therefore, Interest expense to be charged to Profit and loss…

Q: On June 30, 2021, Moran Corporation issued $13.5 million of its 6% bonds for $12.1 million. The…

A:

Q: On January 1, 2020, Kabond issued a 3-year bond with conversion feature, 9% P1,000,000 at par.…

A: Conversion feature P1000000 9% of P1000000 P90000 Rate per Year (90/3) P30000 Total value…

Q: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: P642,007.30 in b

A: Introduction Present value of bond:-

Q: On July 1, 2020, Center Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: Bonds payable are issued to collect long-term funds for the business entity. Bonds carry a fixed…

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: On July 1, 2021, Sarah Company issued 4,000 8% bonds payable with P1,000 face amount for P3,504,000.…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: On June 30, 2021, Allen Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds…

A: The bonds are issued at a discount when the interest offered by the market is greater than the…

Q: On January 1, 2021, QuantumQuarry Co. issued a 5-year bond with a face value of $500,000. The bond…

A: Bonds/Notes are the instruments/ securities issued by the companies to raise funds for the company…

Q: On January 1, 2018, Lane Unlimited issues a 9%, 10- year bonds payable with a face value of…

A: Total premium on bonds = Issue value - Face value = $240,000 x 105/100 - $240,000 = $12,000

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: 7) On January 1, 2016, Giant Company issued an 8% callable bond which has a par value of $200,000…

A: Retirement of Bonds: Retirement of bonds is the scenario where a company reacquires bonds which are…

Q: d mature on December 31, 2031. ABC uses the effective interest method of amortizing bond discount.…

A: When bonds are issued a price less than its face value , there is a discount on bonds payable. The…

Q: On April 1, 2019, Company Y issued a 10-year bond for $5,265,750. The bonds have a stated rate of 5%…

A: On 01.04.2019, Company Y issued 10 year bond = $5265750 Interest rate on bonds = 5% Pays semi…