On October 1, 2023 macklin corporation issued 5 %, 10-year bonds with a face valueof $6,000,000 at 104. Interest is paid on october 1 and April 1, with any premiums ordiscounts amortized on a straight-line basis. Bond interest payable reported on thedecember 31, 2023 balance sheet of Macklin corporation would be. A- $75,000 B - $69,000 C $138, 000 D $81, 000

Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Answered: On october 1, 2023 macklin corporation…

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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On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest. The bonds are dated April 1, 2020 and mature on April 1, 2029. Interest is payable semi-annually on April 1 and October 1. What amount did Kwek-kwek Company receive from the bond issuance? A. 579,000 B. 594,000 C. 609,000 D. 600,000
A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7% on January 1, 2020. Select one question below and identify or calculate the amount. 1. Principal Amount 2. Nominal Rate 3. Stated Rate 4. Market rate 5. Effective rate 6. Maturity Value 7. Face value 8. Carrying Value 9. Par Value 10. Annual 2020 Cash Interest to be paid 11. Annual 2020 Interest Expense 12. Was the Bonds issued at discount or premium and why
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On June 30, 2021 the market interest rate is 10% winner corporation issues $850,000 of 11% 30 year bonds payable the bonds pay interest on June 30 and December 31 the company amortize bond premium using the effective interest method use the PV function in excel to calculate the issue of the bonds. The issue price of the bond is.
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Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Cash Payment Interest A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Effective Decrease in Interest Balance Disct Cash 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term? Outstanding Balance 10,000,000 (6,261,343) 3,738,658 4,000,000 7,738,658 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676
Current Attempt in Progress On July 1, 2023, Ivanhoe Inc. issued $330000, 9% bonds, which mature on July 1, 2030. The bonds were issued for $313934 to yield 10%. Ivanhoe uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2025, the adjusted balance in the Bonds Payable account should be O $315627. O $330000. $330427. $317490.
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Marigold Corp. issued 3, 300 7%, 5-year, $1,000 bonds dated January 1, 2022, at face value. interest is paid each january 1. Prepare the journal entry to record the sale of these bonds on January 1, 2022.
Presented below is an amortization schedule related to Flint Company's 5-year, $150,000 bond with a 7% interest rate and a 4% yield, purchased on December 31, 2023, for $170,034. Date Cash Received Interest Revenue Bond Premium Carrying Amount Amortization of Bonds 12/31/23 $170,034 12/31/24 $10,500 $6,801 $3,699 166,335 12/31/25 10,500 6,653 3,847 162,488 12/31/26 10,500 6,500 4,000 158,488 12/31/27 10,500 6,340 4,160 154,328 12/31/28 10,500 6,172 4,328 150,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Amortized cost $166,335 $162,488 $158,488 $154,328 $150,000 Fair value 165,800 164,700 160,400 155,400 150,000 (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry related to the held-to-maturity bonds for 2024. (c) Prepare the journal entry…
Ellis Company issues 7.5%, five-year bonds dated January 1, 2021, with a $440,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $449,140. The annual market rate is 7.0% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2 Dr the de life

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