On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of ₱3,677,600, a price that yields 8%. Interest is payable annually every December 31. The entity elected the fair value option. On December 31, 2020, the bonds are quoted at 97. On April 30, 2021, the entity retired the bonds at 102. What is the gain or loss on retirement?

Q: What is the total amount of unamortized premium discount after its fourth interest payment? or

A: Effective interest rate is the interest rate which is actually interest rate which is applied on the…

Q: corporation uses the straig O $34350 O $2549. O $875. O $10500.

A: Straight-line amortization of discount is a method for amortizing discount on bonds . Under the…

Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…

A: Gain on retirement of bond is calculated by subtracting the fair value of bond from the retirement…

Q: On January 2, 2020, a calendar-year corporation sold 4% bonds with a face value of $2640000. These…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: On June 30, 2019, ABC acquired a non-interest bearing, 3-year, P6,000,000 face value serial bonds…

A: Note means an instrument acknowledging the debt due from one company to another company with…

Q: MCK Inc. purchased on January 1, 2021, $600.000. 6% bonds of Aguirre Co. for $536,621. The bonds…

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Q: On January 1, 2020, Bridgeport Corporation issued $5,180,000 of 10% bonds at 102 due December 31,…

A: Bonds refer to a security issued by the lender to the borrower while providing money for a certain…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face…

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: On June 1, 2021, NEX Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: On January 2, 2020, Ayayai Corporation issued $2,150,000 of 10% bonds at 98 due December 31, 2029.…

A: The binds are issued at a discount when the bond offers a lower contract rate than the market…

Q: On January 1, 2021, Shay Company issues $350,000 of 10%, 15-year bonds. The bonds sell for $342,125.…

A: Bond :— It is one of the source of capital that pays fixed periodic interest and principal amount at…

Q: At December 31, 2021 the following balances existed on the books of Bulaga Corporation: Bonds…

A: Bond payable is the liability for the company on which the interest has to be paid by the company.…

Q: Cullumber Corporation issues $512,000 of 9%, 5-year bonds on January 1, 2022, at 105. Assuming that…

A: Under the straight line method of premium amortization total value of amortization is distributed…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with face…

A: Bonds Payable It is the amount owed to bond holders by the issuer and is a liability account

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Solution  carrying amount of the bonds payable on December 31, 2020 = Fair value of bond on December…

Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…

A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…

Q: On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,800,000 bonds for $2,100,000. PWI retired…

A: Bond retirement refers to the repurchase of initially issued bonds from investors. When the bonds…

Q: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…

A: Journal is chronological record of financial transactions. It includes details like the date,…

Q: On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,100,000 bonds for $1,400,000. PWI retired…

A: The bonds payable are the financial instruments for the business.  The bonds are issued to raise…

Q: 16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was…

A: The bonds might be issued at a premium or a discount. Bonds are issued at a premium when the cash…

Q: January 1, 2020, Cullumber Enterprises issued 9%, 20-year bonds with a face amount of $5,350,000 at…

A: bonds are considered as a debt instrument that is issued by the company in order to raise the money…

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: SEED Company

A: At The Chia Co we tend to area unit captivated with positive plant primarily based nutrition. Our…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On February 1, 2023, Pat Weaver Incorporated (PWI) issued 12%, $1,700, 000 bonds for $2,000,000. PWI…

A: The bonds payable are the financial instruments for the business. The bonds are issued to raise…

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On January 1, 2021, Aruba Company reported bonds payable of P5,000,000 and a related unamortized…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: The provided information are: Face value = P1,200,000 Rate of interest (r) = 8% = 0.08 Yield = 10% =…

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: A bond is an instrument that represents the loan that is made by the investor to the company and…

Q: On January 1, 2020, Carla Corporation issued $4, 920,000 of 10% bonds at 103 due December 31, 2029.…

A: There are a number of expenses involved in the process of issuing and selling bonds to investors…

Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A journal entry is used to document any commercial transaction in the accounting records of a…

Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds Issue price = Face value of bonds x issue price = $260,000 x 98/100 = $254,800

Q: On June 30, 2019, ABC acquired a non-interest bearing, 3-year, P6,000,000 face value serial bonds…

A: Note means an instrument acknowledging the debt due from one company to another company with…