On January 1, 2024, Patel Company issued $300,000 of 5% , five-year bonds payable at 102. Patel Company has extra cash and wishes to retire the bonds payable on January 1, 2025, immediately after making the second semiannual intere pays the market price of 89. Read the requirements. (Assume bonds payable are amortized using the straight-line amortization method.) Requirement 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? The carrying amount of the bonds payable on the retirement date is Requirements 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? 2. How much cash must Patel Company pay to retire the bonds payable? 3. Compute Patel Company's gain or loss on the retirement of the bonds payable. Print Done

On January 1, 2024, Patel Company issued $300,000 of 5% , five-year bonds payable at 102. Patel Company has extra cash and wishes to retire the bonds payable on January 1, 2025, immediately after making the second semiannual intere pays the market price of 89. Read the requirements. (Assume bonds payable are amortized using the straight-line amortization method.) Requirement 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? The carrying amount of the bonds payable on the retirement date is Requirements 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? 2. How much cash must Patel Company pay to retire the bonds payable? 3. Compute Patel Company's gain or loss on the retirement of the bonds payable. Print Done

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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Subject: acounting
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?
Question-based on, "find the amount". I have tried it but confused.
Cagney Company sold $248,000 of bonds on January 1, 2024. A portion of the amortization table follows. Period CashPayment(Credit) InterestExpense(Debit) Discounton BondsPayable(Credit) Discounton BondsPayableBalance CarryingValue At issue $8,000 $240,000 06/30/24 $12,000 $12,800 $800 7,200 240,800 12/31/24 12,000 12,800 800 6,400 241,600 06/30/25 ? ? ? ? ? Required: 1. Determine the stated interest rate on these bonds. Round your answer to the nearest whole number.fill in the blank 1 % 2. Calculate the interest expense and the discount amortization for the interest period ending on June 30, 2025. Interest expense $fill in the blank 2 Discount amortization $fill in the blank 3 3. Calculate the liability balance shown on a balance sheet after the interest payment is recorded on June 30, 2025.$fill in the blank 4
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Patricia Johnson Company issued $420,000 of 10%, 20-year bonds on January 1, 2025, at 102. Interest is payable semiannually on July 1 and January 1. Johnson Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) a. b. с The issuance of the bonds. The payment of interest and the related amortization on July 1, 2025. The accrual of interest and the related amortization on December 31, 2025. Date Account Titles and Explanation Debit 1000 Credit
On January 1, 2021, a company issues 3-year bonds with a face value of $160,000 and a stated interest rate of 7%. Because the market interest rate is 5%, the company receives $168,714 for the bonds. Required: Fill in the table assuming the company uses effective-interest bond amortization. (Round your answers to the nearest whole dollar.) Period Ended Cash Paid 01/01/2021 12/31/2021 12/31/2022 12/31/2023 Interest Expense Amortized Premium $ 0 0 0 Bonds Payable Premium on Bonds Payable Carrying Value $ 0 0 0 0
Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had $1,000,000, 8% bonds payable issued. The bonds pay interest on January 1 and June 1 of each year, and mature on January 1, 2021. On January 2, 2022, Legault redeemed 60% of these bonds at 101. The amortized cost of the entire bond issue on the retirement date was $1,026,000. The interest payment due on January 1, 2022, has been made and recorded. b) Antonio Inc. redeemed $500,000 of its bonds at 98 on December 31, 2021. The amortized cost of the bonds on the retirement date was $497,500. The bonds pay semi-annual interest and the interest payment due on December 31, 2021, has been made and recorded. Instructions For each of the independent situations, prepare the journal entry to record the retirement of the bonds
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Flint Corporation sold $3,050,000, 6%, 5-year bonds on January 1, 2025. The bonds were dated January 1, 2025, and pay interest on January 1. Flint Corporation uses the straight-line method to amortize bond premium or discount. (a) Your Answer Correct Answer ✓ Your answer is correct. Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2025, assuming that the bonds sold at 103. (List all debit entries before credit entries. Credit account titles are automatically indented when 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.) Date Account Titles and Explanation Jan. 1 Cash Premium on Bonds Payable Bonds Payable Dec. 31 Interest Expense. Debit 3141500 164700 Credit 91 305C
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