Required information [The following information applies to the questions displayed below.] On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount. 4. What is the carrying (book) value of the bonds and the carrying value of the 20% soon-to-be-retired bonds as of the close of business on December 31, 2018? (Negative amounts should be indicated by a minus sign.) Entire Retired Group 20% Par value 2$ 420,000 Remaining discount (5,775) Carrying value $ 414,225 $
Required information [The following information applies to the questions displayed below.] On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25. Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them on the open market at 104.50. All interest is accounted for and paid through December 31, 2018, the day before the purchase. The straight-line method is used to amortize any bond discount. 4. What is the carrying (book) value of the bonds and the carrying value of the 20% soon-to-be-retired bonds as of the close of business on December 31, 2018? (Negative amounts should be indicated by a minus sign.) Entire Retired Group 20% Par value 2$ 420,000 Remaining discount (5,775) Carrying value $ 414,225 $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Not sure how to do the retired group in this method.
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Required information
[The following information applies to the questions displayed below.]
On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25.
Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them
on the open market at 104.50. All interest is accounted for and paid through
December 31, 2018, the day before the purchase. The straight-line method is used to
amortize any bond discount.
4. What is the carrying (book) value of the bonds and the carrying value of the 20%
soon-to-be-retired bonds as of the close of business on December 31, 2018?
(Negative amounts should be indicated by a minus sign.)
Entire
Retired
Group
20%
Par value
$
420,000
Remaining discount
(5,775)
Carrying value
$
414,225
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ece9d0d-a73d-49df-8564-6baad6491ed6%2F3e7bead1-52b4-4e4d-b5db-9df4b2e49dfc%2Fyh03rqm_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
On January 1, 2013, Shay issues $420,000 of 9%, 12-year bonds at a price of 97.25.
Six years later, on January 1, 2019, Shay retires 20% of these bonds by buying them
on the open market at 104.50. All interest is accounted for and paid through
December 31, 2018, the day before the purchase. The straight-line method is used to
amortize any bond discount.
4. What is the carrying (book) value of the bonds and the carrying value of the 20%
soon-to-be-retired bonds as of the close of business on December 31, 2018?
(Negative amounts should be indicated by a minus sign.)
Entire
Retired
Group
20%
Par value
$
420,000
Remaining discount
(5,775)
Carrying value
$
414,225
$
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