Smart Workout Fitness Gym has $300,000 of 20-year bonds payable outstanding. These bonds had a discount of $24,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The currentcarrying amount of these bonds payable isA. $276,000.B. $312,000.C. $288,000.D. $300,000. Superb Entertainment Center borrowed money by issuing $3,500,000 of 4% bonds payable at 94.5. Interest is paid semiannually.Requirements1. How much cash did Superb Entertainment Center receive when it issued the bonds payable?2. How much must Superb Entertainment Center pay back at maturity?3. How much cash interest will Superb Entertainment Center pay each six months?Requirement 1. How much cash did Superb Entertainment Center receive when it issued the bonds payable?Amount of cash Superb Entertainment Center received when the bonds payable were issued =...

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Answered: Smart Workout Fitness Gym has $300,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 14MC: Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the...

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A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000 at issuance, which was 5 years ago. If the company uses the straight line amortization method. The current carrying amount of these bonds payable will be?
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Question based on, "Carrying value of bonds". I have tried it but unable to understand it.

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