On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014and will mature on March 1, 2024. The bonds were sold to yield 10%, total proceeds received by Khaleesiis equivalent to the market value plus accrued interest. Interest is paid every March 1 and September 1.14) What is the balance of unamortized premium/discount in the statement of financial position as ofDecember 31, 2020?

Unamortized discount on bonds payable of 333,906

On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and will mature on March 1, 2024. The bonds were sold to yield 10%, total proceeds received by Khalees is equivalent to the market value plus accrued interest. Interest is paid every March 1 and September 1. 14) What is the balance of unamortized premium/discount in the statement of financial position as of December 31, 2020?

On March 1, 2014, Khaleesi Company issued 10-year P5,000,000 8% term bonds dated March 1, 2014 and will mature on March 1, 2024. The bonds were sold to yield 10%, total proceeds received by Khalees is equivalent to the market value plus accrued interest. Interest is paid every March 1 and September 1. 14) What is the balance of unamortized premium/discount in the statement of financial position as of December 31, 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Joseph Moore Company sells 9% bonds having a maturity value of $1,720,000 for $1,534,000. The bonds are dated January 1, 2025, and mature January 1, 2030. Interest is payable annually on January 1. Click here to view factor tables. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 2 decimal places, e.g. 38,548.25.) Cash Paid 154800 10 Schedule of Discount Amortization Straight-Line Method Interest Expense LA Discount Amortized i 00 101 Carrying Value of Bonds 5000 1534000
On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Phoenix Corporation will report on its balance sheet at the end of 2017? A. $200,000 B. $206,000 c. $204,800 d. $207,200
Gadubhai
On June 30, 2021, the market interest rate is 10% Team Corporation issues $500,000 of 11%, 25-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method Read the requirements Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is
3. On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable semi-annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR Dec. 31, 2018: to record the amortization & payment of interest to bondholders: DR…
BMT Company issued P5,000,000, 12%, 20-year bonds at 102 plus accrued interest on February 1, 2021. The bonds are dated January 1, 2021 and pay interest semi-annually every June 30 and December 31, Transaction costs totaled P50,000. How much accrued interest on the bonds shall BMT Company collect from the investor on February 1, 2021?
On March 1, 2018, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $161 million. The bonds were priced at $140.7 million (plus accrued interest) to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Do not give answer in image
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 10/1/X1, Openshaw, Inc issued $1,000,000 of bonds at a price of 98. Assuming the bonds have a 3-year term and bear interest at an annual stated rate of 6% payable semi-annually. What is the 12/31/X1 adjusting journal entry to record interest (using the straight line method?) а. Interest Expense $66,667 Interest Payable 60,000 Bond Premium 6,667 Interest Expense $16,667 Interest Payable 15,000 Bond Discount 1,667 C. Interest Expense $66,667 Interest Payable 60,000 Bond Discount 6,667 d. Interest Expense $16,667 Interest Payable 15,000 Bond Premium 1,667 d O O
On January 1, 2019, Mitsubishi Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2029 for P8,451,000 to yield an effective rate of 10%. Mitsubishi Company uses the effective interest method. Interest is payable annually on December 31. At December 31, 2019, what is the balance of the discount on bonds payable?
Terry Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2011 with interest payments on June 30 and December 31. When bonds are issued on November 1, 2011, Terry Company received cash of P5,150,000 ( excluding interest). a. What is the discount or premium from the issuance of the bonds payable? Indicate whethere discount/premium. b. How much is the total interest expense for the whole life of the bond?
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?