Homework Help is Here – Start Your Trial Now!
Business
Accounting
Q1. What is the carrying value of the bonds on December 31, 2019? a. 5,306,515 b. 5,309,000 c. 5,309,010 d. 5,317,505 Q2. What is the carrying value of the bonds retired on August 1, 2021? a. 3,125,172 b. 3,127,008 c. 3,129,355 d. 3,200,061 e. 3,122,038 Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?

Q1. What is the carrying value of the bonds on December 31, 2019? a. 5,306,515 b. 5,309,000 c. 5,309,010 d. 5,317,505 Q2. What is the carrying value of the bonds retired on August 1, 2021? a. 3,125,172 b. 3,127,008 c. 3,129,355 d. 3,200,061 e. 3,122,038 Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
 
On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face
value 12% bonds for P5,386,072, a price that yields 10%. Interest is payable semi-annually on
June 1 and December 1. On August 1, 2021, the Lawrz Corporation retired P3,000,000 of the
bonds at 105 plus interest. The Accounting period for the Lawrz Corporation is the calendar
year.
Q1. What is the carrying value of the bonds on December 31, 2019?
a. 5,306,515
b. 5,309,000
c. 5,309,010
d. 5,317,505
Q2. What is the carrying value of the bonds retired on August 1, 2021?
a. 3,125,172
b. 3,127,008
c. 3,129,355
d. 3,200,061
e. 3,122,038
Q3. What is the gain or loss on redemption of the bonds on August 1, 2021?
a. 24,828 loss
b. 24,848 loss
c. 24,828 gain
d. 24,848 gain
e. 27,962 loss
 
 
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Long-term liabilities
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS