On January 1, 2020, Trader Company issued its 8%, 4 year convertible debt instrument with a face amount of P6,000,000 for P5,900,000. Interest is payable every December 31 of each year. The debt instruments is convertible into 50,000 ordinary shares a par value of P100. When the debt instruments were issued, the prevailing market rate of interest for similar debt without conversion option is 10%. PV of 10% for ordinary annuity of P1 after 4 periods 3.169865 PV of 10% after 4 interest period .683013 1. What is the amortized cost of the debt as of December 31, 2022? A. 5,619.616 B. 5,701.578 C. 5,791.735 D. 5,890.909

Q: Marinara, Inc. issued a 3-year term 2,000 convertible bonds on January 1, 2021 at 110 with a face…

A: Bonds payable is a form of liability being incurred in business. It can be long term or short term,…

Q: On January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Step 1 is for understanding initial Entries and Understanding the flow if you want Direct Answer…

Q: Req 1 Req 2 to 4 Prepare the journal entries to record their issuance by The Bradford Company on…

A: The journal entry can be defined as the very first step where a transaction is entered into books of…

Q: 019. The debentures have a four-year term, and interest is payable annually in arrears at nominal…

A: Treatment of Debenture issued on discount Concept for accounting of issuance of debentures

Q: Tuku limited issued a 5% K70 million bond on 1/1/2018. The bond attract an issue costs of 10% as…

A: Initial Recognition (1/1/2018):Cash received from the issuance of the bond: K70,000,000Issuance…

Q: On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of…

A: Answer:-  Unamortized discount meaning:- Unamortized bond discounts are the differences between a…

Q: Faith Company issued 5500 convertible bonds on January 1, 2019. The bonds have a three-year term and…

A: As Given in the question Faith Company provided 5,000 convertible notes due on January 1, 2019. The…

Q: On January 1, 2022, the Kinship Capital Partners issued $700,000 par value, 18%, 6-year bonds.…

A: Note 1Given:Principal (par value): $700,000Annual interest rate: 18%Semiannual interest rate:…

Q: 17. On January 01, 2019, IDAMAY KO NA RIN PO SI PAPA CO. issued 10-year bonds with a face amount of…

A: Solution: Chart Values are based on:           n=  10   i=  10%   Cash Flow Table Value *…

Q: On January 01, 2019, IDAMAY KO NA RIN PO SI PAPA CO. issued 10-year bonds with a face amount of P1…

A: Solution Chart Values are based on:           n=  10   i=  10%   Cash Flow Table Value *…

Q: • On January 1, 2020, X Company purchased $2,000,000 in bonds that will mature in 10 years and pay…

A: Company needs capital and funds for the purpose of financing its assets. In order to finance the…

Q: On 1 January 2019, Casio Ltd issued 2,000 4% £100 convertible bonds. Each bond is redeemable in…

A: Lets understand the basics. When any bond is convertible into equity shares then bond is having two…

Q: Swifty Company sells 8% bonds having a maturity value of $1,600,000 for $1,369,300. The bonds are…

A: The question is based on the concept of Financial Accounting.

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: n January 1,2020, ABC Company issued P 10,000,000 convertible bonds with a stated rate of 12% at…

A: Bonds can be converted to the number of shares upon the expiration of bond. Or bonds may be retired…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: Bonds are longer term sources of finance for companies and bonds are lower cost of source of finance…

Q: 2. What is the gain or loss from extinguishment of bonds? a. 700,000 gain b. 700,000 loss c. 300,000…

A: Bonds are a form of loan or debt that is being issued by the company for raising funds, on which…

Q: Sheffield Company sells  10% bonds having a maturity value of $ 1,300,000 for $ 1,206,280. The bonds…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = 1,300,000 x…

Q: On April 1, 2025, the entity retired 2,000 of its P1,000 bonds at a redemption price of P2,120,000,…

A: Gain or Loss which occurs due to the fact of retirement of bonds at a different value which is not…

Q: On January 1, 2009, Delta Company issued its P10,000,000 face amount, 10% bonds to yield 8% per…

A: The carrying value of Bond Liability on January 1, 2009 will be the issue price of Bonds.    The…

Q: On January 1, 2021, BBB Company issued 10% bonds payable dated January 1, 2021 with a face amount of…

A: Present Value of Bond = PV of Coupon Payments + PV of Redemption Value PV of Coupon Payments =…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…

A: Given information Future value= 80,000,000 Number of years= 10 × 2= 20 Rate of interest= 12% ÷ 2=…

Q: On January 1 , 2021, Gray Co. issued its 10%, 4-year convertible debt instrument with a face amount…

A: Above question is based on Compounded Financial Instrument. In these type of instrument, two…

Q: On January 1, 2021, EXPERT EFFORT Company purchased serial bonds with face value of P3,000,000 and…

A: Under the amortized cost method, present value of the bond can be calculated by discounting all the…

Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $94 million on January…

A: 1. Given, Face amount = $94000000 n = 10 x 2 = 20 i = 10%/2 = 5% Market yield = 12%/2 = 6% Cash…

Q: On January 1, 2019, $2,000,000 of five-year, 6% convertible bonds were sold by Company Z for…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par.…

A: The effective rate of interest paid is the effective interest rate. The target or required interest…

Q: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

A: Present value of principal = Face value of the bonds x Present value factor at market rate

Q: bonds were issued, the prevailing market interest rate for similar debt without the conversion…

A: Financial statements refer to the final documents prepared at the end of the year by the business…

Q: n April 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on April 2,…

A: Price of bond is the present value of coupon payment and present value of the par value of the bond…

Q: Sheridan Corporation issued $5 million of 10-year, 6% callable convertible subordinated debentures…

A: Formula:

Q: On January 1, 2021, LMN Company issued 10-year bonds with a face amount of P3,000,000 at a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Mindsetta Music Inc. issued bonds on March 1, 2020, with a par value of $420,000. The bonds mature…

A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: On January 1, 2020, MANGO Corp. issues $100 million of convertible bonds at par value. The bonds…

A: Part 1:

Q: two periods = 0.83; For three periods = 0.75. What is the present value of the serial bonds on…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…