P-3***On January 1,2011, RON Company issued 12% P2,000,000 face value bonds for P2,101,484, a price to yield 10%. The bonds mature on December 31, 2013. Interest is paid semi-annually on June 30 and December 31. Required: 6. Calculate the following: Year-end 12/31/2011 Year-end 12/31/2012 Amortization of premium Interestexpense Carrying amount of bonds

P-3***On January 1,2011, RON Company issued 12% P2,000,000 face value bonds for P2,101,484, a price to yield 10%. The bonds mature on December 31, 2013. Interest is paid semi-annually on June 30 and December 31. Required: 6. Calculate the following: Year-end 12/31/2011 Year-end 12/31/2012 Amortization of premium Interestexpense Carrying amount of bonds

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

A-3
QUESTION 1 On January 1, 2009, Bishop Company issued 10% bonds dated January 1, 2009, with a face amount of $20 million. The bonds mature in 2018 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Determine the cash received at issue of the bonds at January 1, 2009. Do not use dollar signs or commas in your answer.
Show your solution pls On March 1, 2016, Rose Corporation issued at 103 plus accrued interest, one hundred of its 9%, P1, 000 bonds. The bonds are dated January 1, 2016, and mature on January 1, 2024. Interest is payable semi-annually on January 1 and July 1, Rose paid bond issue costs of P 5,000. Rose would realize net cash receipts from the bond issuance of – *
Current Attempt in Progress Blossom Company issues $4900000, 4.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 3.0%. Given the following present value factors, what are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods O $4900000 O $5125957 O $5124977 O $5124067 1.5% 0.92826 0.86167 2.0% 0.82035 3.0% 0.90573 0.86261 0.82193 4.71346 0.74409 4.78264 9.22218 8.98259 8.53020 4.57971 4.0% 0.67556 4.45182 8.11090
B. On January 1, 2016, Gibson Co. issued eight-year bonds with a face value of $20 0,000,000 and a stated interest rate of 6%, payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% Present value of 1 for 8 periods at 8%.. Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6%. Present value of annuity for 8 periods at 8%. Present value of annuity for 16 periods at 3%. Present value of annuity for 16 periods at 4%. .627 .540 .623 .534 6.210 5.747 12.561 11.652 a. The issue price of the bonds is b. Prepare the journal entries for the interest payments on June 30, 2016 and December 31, 2016.
P-4***On July 1,2011, SUNSHINE Company issued P2,000,000, 10% bonds, which mature in five years. The bonds were sold on July 1,2011 for P1,852,810 a price to yield 12%. Interest is paid semiannually on July 1 and December 31. 7. Calculate the following: Year-end 12/31/2011 Year-end 12/31/2012 Amortization of discount Interestexpense Carrying amount of bonds
Problem Two On December 31, 2015, Olde West Corp issued $2,000,000, 10%, 5-year bonds. Interest is payable semiannually on June 30 and December 31. Using the present value tables, (1) determine the issue price of the bonds and (2) show the journal entry that would record the issuance, assuming the market interest rate at the date of issuance was: a) 8% b) 10% c) 12%
Problem 1: On January 1, 2022, Smith Corp. issued 5-year 12% bonds with face amount of P5,000,000 at a price of P4,497,320 which yields an effective rate of 15%. Interest is payable annually every December 31 starting December 31, 2022. Case 3: The bonds are retired at 92 plus accrued interest on September 30, 2024. 6. How much is the total amount of cash paid to retire the bonds on September 30, 2024? 7. How much is the gain or loss on early retirement of bonds on September 30, 2024? 8. How much is the interest expense for the year 2024?
p29
aj.7
Problem 5: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of P8,000,000. The bonds mature on December 31, 2026. For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semi-annually on June 30 and December 31. (Use at most, 4 decimal places for PV factors) J. Prepare the journal entries for 2021 K. Compute or provide the answers for the following: 22. Determine the price of the bonds on January 1, 2021. 23. How much is the interest expense for the year ended, December 31, 2021? 24. How much is the interest expense for the year ended, December 31, 2022? 25. What is the carrying amount of the bonds on December 31, 2022?
Subject: acounting