s. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 2015. Valuation Allowancefor Available-for-Sale Investments had a balance ofzero on January 1, 2015. c. Issued $500,000 of 10 -year, 5% bonds at 104, with interest payablesemiannually. p. Recorded the payment of semiannualinterest on the bonds issued in (c) and the amortizationof the premium for 6 months. The amortization isdetermined using the straight-line method.s. The Solstice Corp. bonds have a fair value of $253,630 on December 31, 20Y5. Valuation Allowance for Available-for-Sale Investments had a balance of zero on January 1, 2015.DescriptionUnrealized Gain (Loss) on Available-for-Sale InvestmentsValuation Allowance for Available-for-Sale InvestmentsDebitCredit253,630×Alpha-numeric input field

Step 1:calculate the premium Step 2:determine the semiannual interest payment Step 3:record the…

Answered: s. The Solstice Corp. bonds have a fair…

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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1.) On Janaury 31, 2016, Large Corp. issued P 3,000,000 maturity value 12% bonds for P 3,000,000 cash. The bonds are dated Dec. 31, 2015 and mature on Dec. 31, 2025. Interest is payable semiannually on June 30 and Dec. 31. What amount of accrued interest payable should be reported on Sept. 30, 2016? 2.) On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature on Janaury 1, 2016. The bonds were issued for P 4,695,000 to yield 10%. Interest is payable annually on Dec. 31. The entity used the interest method of amortizing bond discount. What is the amortization discount for 2016?
. Dechow, Inc., issued $250,000 of 8%, 15-year bonds at 97 on July 1, 2009. Interest is payable semiannually on December 31 and June 30. Through June 30, 2016, Dechow amortized $3,186 of the bond discount. On July 1, 2016 Dechow retired the bonds at 101. Required a. Prepare journal entries to record the issue and retirement of these bonds. (Assume the June interest expense has already been recorded.) b. Post the journal entries from part a to their respective T-accounts. c. Record each of the transactions from part a in the financial statement effects template.
On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective interest rate of 8%. Interest is paid semiannually on June 30 and December 31. The company uses the effective interest method of amortization. Required: For ABC Co. answer the following independent requirements STONERE a Assume that the bond was issued on August 31, 2017, prepare the journal entry on December 31, 2017
E. Issuance of Bonds On June 30th 2015 issued a $2,000,000 25 year 7% bond for $1,920,000. Interest is povebl semiannually. Journalize the following including correct dates: a. the date of issue of bonds b. payment of the first interest payment C. amortization
On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000, including accrued interest. The bonds are dated October 1, 2008, mature on October 1, 2018, and pay interest annually on October 1. The bonds were issued through an underwriter to whom Beta paid bond issue cost of P150,000. On January 1, 2009, what should Beta report as bonds payable?
Didde Company issues $20,000,000 face value of bonds at 96 on January 1, 2013. The bonds are dated January 1, 2013, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2016, $12,000,000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2016? please show me the work, the calculation.
On March 1, 2018, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $161 million. The bonds were priced at $140.7 million (plus accrued interest) to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Do not give answer in image
Ivanhoe Company issued $2,900,000 of 10%, 10-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and January 1. Ivanhoe Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.6833%. Prepare the journal entries to record the following. (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.) (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2017. (c) The accrual of interest and the related amortization on December 31, 2017. Date Account Titles and Explanation Debit Credit (a) 1/1/17 (b) 7/1/17 (c) 12/31/17
1)
On June 1, 2017, HIJ Company purchased bonds with a face amount of 3,000,000 to be held to maturity. The stated rate on the bonds is 10% but the bonds are acquired to yield 11%. The bonds mature at the rate of 1,000,000 annually every May 31 starting May 31, 2018 and interest is payable annually also on May 31. The entity used the effective interest method of amortizing discount.1. What is the total amortization for 2018?2. What is the carrying amount of the bond investment on December 31, 2019?
Af the fimе oj of On January 1, 2007, FFF Inc. issued its 10 percent bonds in the face amount of P1,500,000. They mature on January 1, 2017. The bonds were issued for P1,329,000 to yield 12 percent, resulting in bond discount of P171,000. FFF uses the effective-interest method of amortizing bond discount. Interest is payable July 1 and January 1. 5. For the six months ended June 30, 2007, FFF should report bond interest expense of Nos. 6-8 pertains to the following: On February 28, 2017, GGG Industries issued 10% bonds, dated January 1, with a face amount of P48 million. The bonds were priced at P42 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Required: What would be the amount(s) related to the honds GCC 6.
On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the bonds after the first interest payment is made on June 30, 2016? a. $574,540 b. $571,776 c. $568,920 d. $500,000

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