On January 1, a company issues $500,000, 5-year, 12% bonds at 96 with interest payable on January 1. What is the carrying value of the bonds at the end of the third interest period if amortization is $4,000 per year using the straight-line amortization method? $464,000 O $472,000 O $492,000 O $488,000 O $12,000

Q: < On December 31, 2024, when the market interest rate is 12%, McCann Realty issues $900,000 of 13 25…

A: The company issues bonds when it wants to raise debts. The company makes the cash payment for…

Q: On January 1, 2024, Oriole Co. sold 12% bonds with a face value of $2650000. The bonds mature in…

A: Face value $    2,650,000Coupon rate12.00%per yearEffective rate10.00%per yearCarrying value as on…

Q: On September 30, 2020, siemens Corporation issued Rs.5,000,000 face value of 9%,5 years bonds to…

A: Lets understand the basics.Amortization of premium or discount on issue on bonds can be done…

Q: 3. On 1/1/21, Your Company issued $250,000 of 6% bonds, dated 1/1/21. The bonds pay interest…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: 5. Queens Company issues $1M of 6%, 20-year bonds payable on 3/1/2024, which are sold at a price of…

A: The discount on bonds arises when the market offers higher interest earnings than the bonds. The…

Q: On July 1, 2023, JMM Limited issued bonds with a face value of $930,000 due in 20 years, paying…

A: Bonds are the debt instruments that corporations generally issue to raise money, The government…

Q: Wildhorse Co. issued $1150000 of 8%, 5-year bonds at 106, which pay interest annually. Assuming…

A: Issue price = 106 Cash receipts from issue of bonds = 1150000 x 106% = $1219000 Par value of bods =…

Q: Terrance Company issued P200,000 of 8%, 5-year bonds at 106. Assuming straight-line amortization and…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: Darby company issues a $100,000 on 12/31/x0, 10%, bond that matures in 3 years. interest is paid on…

A: Amortization refers to the process of spreading out the cost of an intangible asset or capital asset…

Q: Georgia Corporation issued $200,000 par value, 10%, 4-year bonds (i.e., there were 200 of $1,000 par…

A: Price of bond is the present value of coupon payments plus present value of par value of the bond…

Q: the carrying value of the bonds after one​ year?

A: Here is the calculation for the above question.

Q: Diana Inc. issued $350,000 of its 7%, 5-year bonds for $335,816 when the market rate was 8%. The…

A: Semi-annually interest payment = Face value of bonds x rate of interest x 6/12 =350000*7%*6/12 =…

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is…

A: Here the bonds having coupon rate 7.8% are issued to yield at 8%  Thus represents that bonds are…

Q: Sagar

A: June 30, 2024:Interest Expense:The bond's face value is $800,000, and the coupon rate is 8%.…

Q: eridan Company issued $970000 of 8%, 5-year bonds at 104, which pay interest annually. Assuming…

A: Answer : Interest payment = $970,000*8% = $77,600 premium =$970,000 * 1.04 - $970,000= $38,800…

Q: Given the following data: Bonds payable, maturing in 10 years $8,000,000 Contract interest rate = =…

A: Lets understand the basics.Premium or discount on issue of bonds can be amortized using,(1)…

Q: Moab Corporation sells $600,000 of 7%, 20-year bonds for 98 on January 1. Interest is paid on…

A: Issue value = Face value of bonds x Issue price /100 = $600000 x 98/100 = $588,000

Q: Oak Branch Inc. issued $720,000 of 4%, 10-year bonds when the market rate was 3%. They received…

A: Date Cash Interest Payment $ Interest on Carrying Value (@1.5%) $ Amortization of Premium $ Carrying…

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: Melon Company issues $1,200,000 of its 15%, 10-year bonds at 95 on February 28, Year 1. The bonds…

A: The bonds payable are reported as long-term liabilities in the balance sheet. The bonds payable are…

Q: On January 1, 2024, Lakeside Amusement Park issues $660,000 of 5% bonds, due in 20 years, with…

A: Bond valuation is the process of determining the fair value or price of a bond, which is a debt…

Q: what is the carrying value of the bonds after one year?

A: Carrying Value of Bonds It is the total of bond's face value and  any un-amortized premiums or…

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and…

A: Interest expense is defined as the cost of borrowing the amount or money, in short, it is the price…

Q: Cullumber Company issued $510000 of 8% 5-year bonds at 107, which pay interest annually Assuming…

A: Lets understand the basics. There are two method for amortizing bond premium/discount which are, (1)…

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Calculate…

A:

Q: Hildreth Corporation issued $180,000 par value, 2%, 4-year bonds (i.e., there were 180 of $1,000 par…

A: Price of bond refers to the present value or current value of the future earnings from the bond and…

Q: A company issues 9%, 20-year bonds with a par value of $750,000. The current market rate is 9%. The…

A: Bonds are sources of raising long-term funds by the company. The company pays periodic interest…

Q: 3. On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds…

A: Cash Payment of Interest = Face Value * Stated rate of InterestInterest Expense = Carrying Value *…

Q: On July 1, 2023, DDJ Limited issued bonds with a face value of $900,000 due in 20 years, paying…

A: Bonds are issued below the face value than this is dicount and this is due to the higher interest in…

Q: None

A: The amortization of any premium or discount on the bonds, as well as the actual interest paid, are…

Q: On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest…

A: Introduction: Interest: Interest is calculated on Principal Amount. Interest is calculated…

Q: bonds on January 2, 2022 for $540,000. In addition, the company incurred $50,000 in bond issue…

A: To calculate the correct amount of bond interest expense to be recorded on December 31, 2022, we…

Q: A company issues 15,000,000, 7.8% 20 year bond to yield 9% on Jan.1,20. Interest is paid on June 30…

A: Solution: Introduction: A bond is an instrument of financial indebtedness of a bond issuer company…

Q: Suppose that Best Buy issued $890000 of 8%, 5-year bonds at 108. Assuming straight-line amortization…

A: Amortization of premium :The amortization of bond premium is calculated by dividing the total bond…

Q: Oak Branch Inc. issued $800,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Cash InterestPayment Interest onCarrying Value Amortization ofPremium  Carrying Value   (A) =…

Q: Serenity Company issued $100,000 of 6%, 10-year bonds when the market rate of interest was 5%. The…

A: Premium on bonds = Issue price of the bonds - Face value of the bonds = $107,722 - $100,000 =…