Retirement of bonds On December 31, 2019, LaBrea Corp.'s statement of financial position included the following: 7.5% bonds payable, due December 31 , 2027 The bonds have a face value of $ 600,000, and were issued on December 31, 2017 at 95. Interest is payable semi-annually on June 30 and December 31. LaBrea uses straight-line amortization. $576,000 On April 1, 2020, LaBrea retired 20% of these bonds at 101 plus accrued interest. Instructions Prepare journal entries to record the retirement. Show calculations and round values to the nearest dol Paragraph BIU

Retirement of bonds On December 31, 2019, LaBrea Corp.'s statement of financial position included the following: 7.5% bonds payable, due December 31 , 2027 The bonds have a face value of $ 600,000, and were issued on December 31, 2017 at 95. Interest is payable semi-annually on June 30 and December 31. LaBrea uses straight-line amortization. $576,000 On April 1, 2020, LaBrea retired 20% of these bonds at 101 plus accrued interest. Instructions Prepare journal entries to record the retirement. Show calculations and round values to the nearest dol Paragraph BIU

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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a company issues 25,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are 24,505,180. Using straight line amortization, what is the carrying value of the bonds on December 31, 2022
On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted to $3,000. Bond premium is amortized on straight-line basis. On July 1, 2026, 40% of the bonds were called at 104. Required: Record the retirement of the bonds. Ignore interest and use straight-line amortization.
The December 31, 2021 balance sheet of Blossom Co. included the following items: 7.5% bonds payable due December 31, 2029 Unamortized discount on bonds payable The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2020, Wolfe retired $732,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Apr. 1 Apr. 1 Account Titles and Explanation Interest Expense Discount on Bonds Payable Cash $3,660,000 146,400 (To record interest and discount on bonds) Bonds Payable Loss on Redemption of Bonds Discount on Bonds Payable Cash Debit Credit
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
A company issues $17000000, 9.8%, 20-year bonds to yield 10% on January 1, 2024. Interest is paid on June 30 and December 31. The proceeds from the bonds are $16708295.53. If the effective-interest method of amortization is used, what amount of interest expense will be recognized in 2024? $833000 $1670756 $1670951 $1666000
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On December 31, 2020, the liability section of Martin Luther Company's statement of financial position included 10% bonds payable of P10,000,000 and unamortized premium on bonds payable of P180,000. Further verification revealed that these bonds were issued on December 31, 2018 and will become due on December 31, 2028. Interest at 12% is payable every December 31. On April 1, 2021, Martin Luther retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the gain or (loss) on the retirement of bonds on April 1, 2021? Enclosed in parenthesis in case of loss.
Vishnu
The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value of $3900000, were issued at a premium to yield 8%. Crane uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Crane retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is $0. O $28600. O $46200. $156000.
Current Attempt in Progress On January 2, 2018, Crane Corporation, a small company that follows ASPE, issued $1.8 million of 10% bonds at 98 due on December 31, 2027. Legal and other costs of $180,000 were incurred in connection with the issue. Crane has a policy of capitalizing and amortizing the legal and other costs incurred by including them with the bond recorded at the date of issuance. Interest on the bonds is payable each December 31. The $180,000 of issuance costs are being deferred and amortized on a straight-line basis over the 10- year term of the bonds. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (The straight-line method is not materially different in its effect compared with the effective interest method.) The bonds are callable at 102 (that is, at 102% of their face amount), and on January 2, 2023, the company called a face amount of $1,000,000 of the bonds and retired them. (a) Ignoring income taxes, calculate the…