plus accrued interest on February 1, 2020. The bonds are dated 5 Michigan, Inc. issued P1 million, 12%, 20-year bonds at 102 January 1, 2020 and pay interest semi-annually every June 5o and December 31. Transaction costs totaled P50,000. How much accrued interest on the bonds shall Michigan collect from the investor on February 1? P10,000 P20,000 P30,000 P50,000 a. b. С. d. Use the same information given in MC36, what is the initial carrying amount of the bonds on February 1, 2020? P 950,000, P 970,000 P1,000,000 P1,020,000 a. b. с. d.

plus accrued interest on February 1, 2020. The bonds are dated 5 Michigan, Inc. issued P1 million, 12%, 20-year bonds at 102 January 1, 2020 and pay interest semi-annually every June 5o and December 31. Transaction costs totaled P50,000. How much accrued interest on the bonds shall Michigan collect from the investor on February 1? P10,000 P20,000 P30,000 P50,000 a. b. С. d. Use the same information given in MC36, what is the initial carrying amount of the bonds on February 1, 2020? P 950,000, P 970,000 P1,000,000 P1,020,000 a. b. с. d.

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

Hh1.
On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest on a semiannual basis on June 30 and December 31 each year. The market interest rates were slightly higher than 5% when the bonds were sold. Were these bonds issued at a premium or discount? Will the semiannual interest expense on these bonds be more than or less than the amount of interest paid on each payment date? Multiple Choice The bonds were issued at a discount, and the semiannual interest expense will be more than the amount of interest paid on each payment date. The bonds were issued at a discount, and the semiannual interest expense will be less than the amount of interest paid on each payment date. The bonds were issued at a premium, and the semiannual interest expense will be more than the amount of interest paid on each payment date. The bonds were issued at a premium, and the semiannual interest expense will be less than the amount of interest paid on each payment date.
Qw. 27. On January 1, 2022, Pipestone Corporation issued a four-year, $40,000, 7% bond. The interest is payable annually each December 31. The issue price was $38,672 based on an 8% effective interest rate. Pipestone uses the effective-interest amortization method. The 2023 interest expense is closest to .
sa
Q8
Answer isn’t 1,000,000
On January 1, 2022, Nuptam Corp. issued $1,300,000 par value, 8%, 3-year bonds when the market rate of interest was 10%. Interest is payable annually each December 31. Nuptam incurred bond issue costs of $22,000. What is the journal entry when Nuptam issued the bonds? Prepare the amortization table for the bonds. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table What is the journal entry when Nuptam issued the bonds? (Record debits first, then credits. Exclude explanations from any journal entries.) January 1, 2022 Account Cash Discount on Bonds Payable Bonds Payable