On January 1, 2019, ABC Company issued 7% term bonds with a face amount of P1,000,000 due January 1, 2027. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%. The interest expense for the year 2019 is? (Round off present value factor to 4-decimal place and round off final answer to whole number)

On January 1, 2019, ABC Company issued 7% term bonds with a face amount of P1,000,000 due January 1, 2027. Interest is payable semiannually on January 1 and July 1. On the date of issue, investors were willing to accept an effective interest of 6%. The interest expense for the year 2019 is? (Round off present value factor to 4-decimal place and round off final answer to whole number)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tushar Ad explanation
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
On April 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on April 2, 2030. The bonds were issued for P9,390,000 to yield 10% resulting in a bond discount of P610,000. Interest is payable annually on April 2. Lucan uses the effective interest method of amortizing bond discount. The interest expense for the year 2022 amounted to?
Ya.4 On January 1, 2019, Bradley, Inc., issued 12% bonds with a face amount of $66 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually. Instructions 1. Determine the price of the bonds at January 1, 2019, and prepare the journal entry to record their issuance by Bradley. 2. Assume the market rate was 8,5%. Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Bradley.
Gadubhai
On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
On January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market rate is 11%. Interest is payable every January 1 and July 1 starting 2021. 1. How much is the discount amortization during 2024?2. How much is the unamortized discount as of July 1, 2025?
On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P2,000,000 due March 1, 2025. Interest is payable semiannually on September 1 and March 1. On the date of issue, the effective interest rate is 6%. Round off PV factors to 4 decimals. Assuming the bonds were retired on June 30, 2021 at 102, inclusive of any accrued interest, what is the gain or (loss) on retirement of bonds?
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
On January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market rate is 11%. Interest is payable every January 1 and July 1 starting 2021. How much is the interest expense for 2021? How much is the discount amortization during 2022? How much is the interest expense for 2023? How much is the discount amortization during 2024? How much is the unamortized discount as of July 1, 2025? Round off all final answers to the nearest peso. Round off present value factors to four decimal places. Round off interpolated rates to the nearest percentage
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 $_
On March 1, 2021, JebaMac Company issued 6% term bonds with a face amount of P1,000,000 due March 1, 2025 Interest is payable semiannually on September 1 and March 1. On the date of issue, the effective interest rate is 7% Round off PV factors to 4 decimals. What is the initial carrying amount of the liability?