On January 1, 2017, Naruto Company issued P4,000,000 face value bonds with a stated rate of 12% and a term of 5 years for 89.94%. Carrying amount of the bond liability on December 31, 2017
Q: On January 1, 2006, Wolf Company issued its 10% bonds in the face amount of P5,000,000, which mature…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.
Q: On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature…
A: Carrying value is present value of future cash flows discount @5%(10/2)
Q: 1 On February 1 2016, Ellison Co. issued eight-year bonds with a face value of $10,000.000 and a…
A: Journal entries are the building blocks of accounting, which is the act of recording the economic…
Q: On January 1, 2017, Naruto Company issued its P2,000,000, 10%, 5-year-term bonds for 1.125. Bond…
A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…
Q: On January 1, 2016, United Corp. issued its 9% bonds in the face amount of P 2,000,000, which mature…
A: Bonds is an investment security in which investors invest amount in exchange of regular interest…
Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…
A: Total discount on issue of bonds = Face value of bonds - Issue value = $6,500,000 - $6,200,000 =…
Q: On January 2, 2012, Halcon Company issued 9% bonds in the amount of P8,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…
A: 1. Compute amount of bonds report in its balance sheet as shown below: Working note: Compute…
Q: The 10% bonds payable of Tulip Company had a net carrying amount of $2,850,000 on December 31, 2021.…
A: Retirement of the bonds : Retiring a bond is the process of paying off a debt obligation with funds…
Q: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $60,000 on January 1,…
A: Given the following information: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of…
Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…
A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: $939,000 to yield 10%. Alquds uses the effective-interest method of amortizing bond discount.…
A: Un amortized bond discount ,7/1/ Year 1 Bond discount amortization ,7/1/ Year 1 to 6/30/Year3:…
Q: On January 1, 2006, Okon Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated…
A: 1.
Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…
A: Unamortized discount on bonds payable of 333,906
Q: On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and…
A: Coupon Rate: Coupon interest rate are the rate of interest paid on the bonds. The coupon rate is…
Q: 1 On February 1, 2016, Ellison Co. issued eight-year bonds with a face value of S10,000,000 and a…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: The present value of the interest is $3006535. $3174325. $3224305. $2955960.
A: Present Value of Interest = Interest Amount * The present value of an annuity for 16 periods at 6%
Q: On January 1, 2016, Broker Corporation issued $3,000,000 par value 12%, 10-year bonds which pay…
A: Issue Price of Bond=Present Value of Maturity amount+Maturity value of Interest payment Present…
Q: Determine the present value of the bonds at issuance.
A: Bond valuation is the process of finding the fair value of the bond. It means to find the present…
Q: On January 1, 2017, Naruto Company issued its P2,000,000, 10%, 5-year-term bonds for 1.125. Bond…
A: Issue price of the bonds means the cash received from the issue of the bonds. Issue price of the…
Q: 1 On February 1 2016, Ellison Co. issued eight-year bonds with a face value of S10,000,000 and a…
A: Financial Management: Financial management comprises of two words i.e. Finance and management.…
Q: On January 1, 2006, Ward Company issued its 9% bonds in face amount of P4,000,000, which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The…
A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…
Q: On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016.…
A: Interest on Bonds = $1,000,000 x 9%= $90,000Present Value of Bonds = Interest on Bonds x PVAF(n=5,…
Q: On January 1, 2015, ABC Co. issued 5-year bonds in the amount of $50, 000. Interest of 4% is…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise capital for the…
Q: PTD Co. issued USD4,000,000 maturity value, 12% bonds for USD4,000,000 cash on January 1, 2014. The…
A: First interest payment will be made on July 1, 2014
Q: On May 1, 2016, Bench Co. issued 11% bonds in the face amount of P 1,000,000 that mature on May 1,…
A: Solution: Face amount of bond= P1,000,000 Premium on issue of bond = P62,000 Issue price of bond =…
Q: Brooke Company issued P6,000,000, 11%, 10 year bonds on May 31, 2016 when the market interest was…
A: Variables in the question:Par value of bond= P100Market value of bond=106.25Value of bond…
Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…
A:
Q: On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on…
A: To answer above question, following bond amortization table will be compiled till 30 June, 2006:…
Q: Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on…
A: When the bonds are issued at more than their par value it means that it has been issued at the…
Q: On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on…
A: Please see Step 2 for required information.
Q: Pinnacle Corp. issued 4% bonds on October 1, 2022. The bonds have a maturity date of September 30,…
A: Bonds:A fixed-income generating instrument that represents the loan given by the investor to the…
Q: On September 30, 2016, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…
A: Determine present value of annuity amount (interest).
Q: On January 1, 2017, Larkspur Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…
Q: On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On January 1, 2017, Naruto Company issued P4,000,000 face value bonds with a stated rate of 12% and…
A: In the given case bonds are issued at discount. Interest expense to be reported in 2017 will be the…
Q: that mature at an annual installment of P500,000 every December 31. The bonds were issued to yield…
A: Bonds are generally used for raising long-term funds for the company. Bonds investors get coupon…
Q: On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued…
A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…
Q: On June 1, 2023, Numbers Company issued a 3-year, P5,000,000 face value bonds with a stated rate of…
A: The present value of the bond issued by Numbers Company on June 1, 2023 is 4,759,815.00.…
Q: Stone Corporation issued 2,900 7%, 5-year, P1,000 bonds dated January 1, 2017, at face value.…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of…
A: Half year coupon rate=10%2=5%
Q: Nicholas Ram Corporation have a $1,700,000 "bond issue" dated March 1, 2016 due in 15 years with an…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
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- Stacy Company issued five-year, 8% bonds with a face value of $6,000 on January 1, 2016. Interest is paid annually on December 31. The market rate of interest of January 1, 2016, is 6%, and the proceeds from the bond issuance equal $6,505. What is the premium amortization?Ivanhoe Company issued $2,900,000 of 10%, 10-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.6833%. Prepare the journal entries to record the following. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2017. (c) The accrual of interest and the related amortization on December 31, 2017. Date Account Titles and Explanation Debit Credit (a) 1/1/17 (b) 7/1/17 (c) 12/31/17On January 1, 2016, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 10%. Bond issue costs associated with the bonds totaled $18,000. Required: Prepare the journal entries to record the following: January 1, 2016 Sold the bonds at an effective rate of 10% December 31, 2016 First interest payment using the effective interest method December 31, 2016 Amortization of bond issue costs using the straight-line method December 31, 2017 Second interest payment using the effective interest method December 31, 2017 Amortization of bond issue costs using the straight-line method
- On October 1, 2015, Redoubtable Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. If you were preparing Redoubtable Corporation’s income statement for December 31, 2015, what bond interest expense would you report?On January 1, 2017, Ellison Co. issued eight-year bonds with a fase value of S6,000,000 and a stated interest rate of6%, payable semlannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8% Use the following to answer question 12: .627 .540 Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6% Present value of annuity for 8 periods at 8% Present value of annuity for 16 periods at 3% Present value of annuity for 16 periods at 4% .623 .534 6.210 5.747 12.561 11.652 honds issued 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.n January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The company paid bond issued cost of ₱80,000 on same date. The stated interest rate on the bonds is 8% payable annually every December 31. After consideration of bond issue costs to be initially measured, the bonds were determined to yield 6% per annum. On December 31, 2021, what should MACADAMIA report as carrying amount of the bonds payable? * A ₱ 5,000,000 B ₱ 5,414,800 C ₱ 5,430,800 D ₱ 5,345,200
- Af the fimе oj of On January 1, 2007, FFF Inc. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2017. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. FFF uses the effective-interest method of amortizing bond discount. Interest is payable July 1 and January 1. 5. For the six months ended June 30, 2007, FFF should report bond interest expense of Nos. 6-8 pertains to the following: On February 28, 2017, GGG Industries issued 10% bonds, dated January 1, with a face amount of P48 million. The bonds were priced at P42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: What would be the amount(s) related to the honds GCC 6.On January 1, 2017, Satin Corp. issued eight-year, 6% bonds with a face value of $500,000, with interest payable annually on December 31. The bonds were sold to yield 8%. The bond issuance costs were $5,000. The bonds payable liability will initially be recorded at: A) $447,534. B) $437,534. OC) $442,534. OD) $500,000.On January 1, 2006, Carrow Company issued its 10% bonds in the face amount of P1,000,000 that mature on January 1, 2016. The bonds were issued for P886,000 to yield 12%, resulting in bond discount of P114,000. Carrow uses the interest method of amortizing bond discount. Interest is payable July and January 1. For the year ended December 31, 2006, Carrow should report bond interest expense at
- Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.On December 31, 2016, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2046. Interest is payable annually on each December 31, beginning in 2017. Determine the price of the bonds on December 31, 2016, assuming that the market rate of interest for similar bonds was 7%.On January 1, 2017, Barclays bank issued 8 %, 5-year bonds with a face amount of K750,000 to Puma Zambia Interest is payable annually at the beginning of the year. The bond is issued for an effective interest rate of 10%. In addition to the purchase price Puma paid the broker K 30,000 to facilitate the purchase of this bond. Requireda) Calculate the value of the bond and prepare the entries to record the issuance of the bonds in the books of Barclays and Pumab) Prepare the entries to record the first annual interest accrual and the payment assuming that the company uses effective-interest amortization. In both Barclays and Puma c) At the end of year 3 Barclays decided to buy back this bond at a cost of K600, 000.Calculate the gain on loss on this transaction and show the double entry also advice if the bond should be bought back. In both Barclays and Puma
