standing Date interest interest balance balance 1/1/2021 $ 207,020 6/30/2021 $ 7,000 6,211 $4 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 6/30/2024 7,000 6,057 943 200,971 12/31/2024 7,000 6,029 971 200,000
Q: A. Storage Shelf; the $10 discount is greater than the $5 discount. B. Storage shelf; the markdown r...
A: Markdown The Calculation of Markdown is to the original selling price of the product with the discou...
Q: E-25 (L08) (Bank Reconciliation and Adiusting Entries) Logan Bruno Company has just bank statement, ...
A: The bank reconciliation statement is prepared to equate the balance of cash book and pass book with ...
Q: ABC Ltd enters into a five-year lease agreement with Legal Ltd on 1 July 2023 for an item of machine...
A: Amount to be paid as insurance and maintenance of the equipment shall be accounted separately and sh...
Q: Beaker Corporation was organized on July 1, with an authorization of 50,000 shares of $4 no-par valu...
A: The question asks for accounting for stockholders' equity in the company's books. The journal entri...
Q: Asian Transit Marine Corporation (Lessee) leases a forklift from NDP Leasing Corp. (Lessor). The lea...
A: Date Particulars Debit (P) Credit (P) 1 Jan 2019 Lease receivables Forklift (Asset given on...
Q: On January 1, 2019, Israel Corp. has equipment having a useful life of 10 years with the following ...
A: The amount by which an asset's carrying value exceeds its recoverable value is known as an impairmen...
Q: I know in order to find the cash flow from operating activities using the indirect method you start ...
A: Adjustments regarding current assets and current Liabilities while preparing cash flow statements ar...
Q: Lang Company completed the following petty cash transactions during April 2022 Date Receipt # For...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: An Ontario employee is paid on a bi-weekly pay schedule. His Gross Earnings for this pay cycle is $2...
A: Withholding refers to the portion of an employee's wages that is excluded from the paychecks of e...
Q: Ripley Corporation's accumulated depreciation-equipment account increased by $15,325 while $3,800 of...
A: Cash flow from the operating activity is part of the cash flow statement. It indicates the cash infl...
Q: An investor purchases a 20-year, $1,000 par value bond that pays semiannual interest of $50. If the ...
A: Current market value of the bonds = Present value of principal + Present value of interest payments ...
Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid sem...
A:
Q: -cancelable lease agreement between Faldo Leasing Company and Pina Company, a lessee. Commencement...
A:
Q: 35. The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company a...
A: Leases is a form of agreement or arrangement between two parties, in which one party provides its as...
Q: h of May is as follows: FICA Social Security tax rate at 6.2%, FICA Medicare tax rate at 1.45%, fede...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: 36... Teal Leasing Company agrees to lease equipment to Flint Corporation on January 1, 2020. The f...
A: Lease is a form of agreement between two parties, in which one party provides it's asset for use to ...
Q: The firm is formed to purchase and operate a vehicle. The purpose of the vehicle is to operate a ta...
A: If the Asset having life of only one year then whole cost is eligible for depreciation. If the new b...
Q: On March 28, the corporation purchased 10,000 shares as treasury stock at P15 per share. On April 10...
A: The issued and outstanding shares are the shares that are issued by the company and are not repurcha...
Q: Assume the following year 2 income statement for Johnstone Corporation, which was a C corporation in...
A: Answer - Out of total distribution of 27,200, 8440 will be from AAA balance, 11560 will be from Ac...
Q: Why do we need to pass the consolidation elimination entry every time we prepare a consolidated fina...
A: Consolidation elimination entry that eliminate duplicate revenue, expenses, receivables, and payable...
Q: ght finances. Lillian did nc e, Lillian, withdrew $20,0C t and Lyle is the contribut e $20,000 withd...
A: Tax refers to the percentile charge levied by the government over the income gained by an entity.,
Q: Front Range Cabinet Distributors in Colorado Springs, Colorado, sells to its contractors with a 48% ...
A: Selling Price = Cost + Markup where, Markup = Cost x Markup %
Q: Problem #10: Standard Costing & Variances Jake’s Cheese Company produces gourmet cheese for resale ...
A: Labor rate variance and Labor efficiency variance calculate the favorable (unfavorable ) variances o...
Q: The Harriott manufacturing company uses job order costing system. The company uses machine hours to ...
A: The journal entries are prepared to keep the record of day to day transactions of the business. The...
Q: ig Construction Inc. has been capitalizing its borrowing costs in the construction of its PPE for it...
A: Solution Concept As per the relevant accounting standards borrowing cost , the borrowing cost incurr...
Q: Exercise 2 Lola Inc. must compute EPS for its 2020 reports. The following information is available ...
A: Investors contribute to the share capital of a company with the aim of receiving returns as and when...
Q: Using the information below from Planters, Inc., what is the cost per un under both variable and abs...
A: Using absorption costing, the product cost comprises of fixed and variable cost. Using variable cost...
Q: The following balances were reported by Nagpapangap Company on December 31, 2020 and 2019: 2020: Acc...
A: Gross Purchase refers to Total Purchase it including cost of goods returned and Discounts also. Unde...
Q: Match each item with the correct statement below. Only the ____ accounts appear on the post-closing ...
A: Post-closing trial balances are prepared at the end of the accounting period. It is prepared after a...
Q: Salaries and wages payable $1,700 Notes payable (long-term) $1,700 Salaries and wages expense 51,800...
A: Lets understand the basics. Income statement is a statement which contains details about income, exp...
Q: Match the correct answer with these terms : cash, cell, SL depreciation, tangible, fiscal, a calende...
A: Given options,
Q: Calculate the amount of overhead allocated to the products of a company that has a predetermined ove...
A: Amount of overhead allocated to the product = Actual machine-hours x Predetermined overhead rate whe...
Q: The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Pi...
A: Given: Commencement date January 1, Annual lease payment due at the beginning of each yea...
Q: Net income or net loss is the difference between total revenue and total expenses over a specific pe...
A: Net income is the income earned by a business during a accounting period. Net income or loss is comp...
Q: The accounts below appear in the ledger of Buffalo Company. Retained Earnings Dr. Cr. ...
A: Journal entry is the process of summarizing the financial data of a company in a specific format....
Q: The Pharm Co. self-constructed an asset for its own use. Construction started on Dec. 31, 2019. Cost...
A: If an entity borrows funds specifically to obtain or construct qualifying asset , the borrowing cost...
Q: Determine whether there is a likelihood of fraudulent income based on the review of information you ...
A: As a lead forensic investigator, some information has been gathered from the internet search of Jale...
Q: Explain 2 reasons of mergers to happen.
A: The basic meaning of merger is the fusion of two or more than two companies voluntarily form a new c...
Q: What annual deposit is required for 5 years to accumulate an amount of money with the same purchasin...
A: Answer) Calculation of amount of annual deposit required to accumulate P 1,000 after the end of 5 ye...
Q: The data provided below is the same for each item in a set of interrelated items about the FIFO appr...
A: The equivalent units are calculated on the basis of percentage of the work completed during the peri...
Q: withdrew $5,000 to buy a used Prelude, and at the end of the fifth year (1/1/11) she had to withdraw...
A: The difference amount will be only the future amount of withdrawals made. As the compounding is made...
Q: for the Compute following (show your solution): 1. Total Current Assets 2. Total Non-current Assets ...
A: 2. Balance Sheet - This Statement shows the balance of assets liabilities and Equity as at the balan...
Q: ompute the value of the lease liability to the lessee.
A: In order to arrive at value of lease liability to Flint corporation we are required to compute prese...
Q: The unadjusted trial balance for Lamb Company at December 31, 2022 is as follows: LAMB COMPA...
A: Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the org...
Q: ABC Ltd enters into a five-year lease agreement with Legal Ltd on 1 July 2023 for an item of machine...
A: Initial measurement of the lease liability=Present Value of Five annual payments +Present Value of P...
Q: All of the information needed to record the closing entries is found in the Income Statement section...
A: A closing entry is a journal entry that is made at the end of an accounting period to move balances ...
Q: Mohammed Corporation's comparative balance sheet for current assets and liabilities was as follows: ...
A: Cash flow from operating activity indicates cash inflow and outflow of business operations. It can b...
Q: of the company's S10 par common stock at an option price of 530 per share. The market value of the t...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Which of the following accounts is not a permanent account? Select one: a. Utilities Expense b. Ca...
A: A permanent account is the account which is not closed at year end and same is carried to balance sh...
Q: up formula, sol Percent mar
A:
![Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization
schedule from issuance until maturity:
Cash
Effective
Decrease in
Outstanding
Date
interest
interest
balance
balance
1/1/2021
2$
207,020
6/30/2021
7,000
2$
6,211
789
206,230
12/31/2021
7,000
6,187
813
205,417
6/30/2022
7,000
6,163
837
204,580
12/31/2022
7,000
6,137
863
203,717
6/30/2023
7,000
6,112
888
202,829
12/31/2023
7,000
6,085
915
201,913
6/30/2024
7,000
6,057
943
200,971
12/31/2024
7,000
6,029
971
200,000
What is the annual stated interest rate on the bonds?
A) 3.5%
B) 6%
C) 7%
D) None of the answer choices is correct.
%24
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ee33aed-9a5b-4509-b2d5-e889c7446511%2F9597cf8b-709e-4b4e-849a-e20758fb4923%2Fg6zmb2s_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Solution:
Annual Stated interest rate on bonds is the rate of interest which is actually paid to the bondholders periodically. It is computed on face value of the bond multiplied by stated rate of interest.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cashinterest Effectiveinterest Decrease inbalance Outstandingbalance 1/1/2021 $ 207,020 6/30/2021 $ 7,000 $ 6,211 $ 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 6/30/2024 7,000 6,057 943 200,971 12/31/2024 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds?Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash Effective Decrease in Outstanding Date interest interest balance balance 1/1/2021 $ 207,020 6/30/2021 7,000 2$ 6,211 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 ? .(omitted) ak 12/31/2024 200,000 ... LPC calls the bonds at 105 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would LPC record on this date? Row t A) No gain or loss is recognized upon early retirement of this debt B) $3,717 gain C) $6,283 loss D) $2,283 loss %24
- Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash interest Effective interest Decrease in balance Outstanding balance 01-01-21 207,020 6/30/2021 7,000 6,211 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 6/30/2024 7,000 6,057 943 200,971 12/31/2024 7,000 6,029 971 200,000 LPC calls the bonds at 103 immediately after the interest payment on 12/31/2022 and retires them. What gain or loss, if any, would LPC record on this date? Multiple Choice No gain or loss $3,717 gain $2,283 loss $6,000 lossLopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortization schedule from issuance until maturity: Cash Effective Decrease in Outstanding Date interest interest balance balance 1/1/2021 2$ 207,020 6/30/2021 24 7,000 24 6,211 2$ 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 6/30/2024 7,000 6,057 943 200,971 12/31/2024 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds? A) 3% B) 3.5% C) 6% D) 7%ony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date cash paid Interest Expense Increase in carrying value carrying value 01/01/2021 $218,690 06/30/2021 $11,500 $13,121 $1,621 220,311 12/31/2021 11,500 13,219 1,719 222,030 06/30/2022 11,500 13,322 1,822 223,852 12/31/2022 11,500 13,431 1,931 225,783 06/30/2023 11,500 13,547 2,047 227,830 12/31/2023 11,500 13,670 2,170 230,000 THA issued the bonds for: Multiple Choice $230,000. $218,690. $299,000. Cannot be determined from the given information.
- Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortizatic schedule from issuance until maturity: Cash Effective Decrease in Date Outstanding interest interest balance balance 1/1/2021 24 207,020 6/30/2021 2$ 7,000 $4 6,211 24 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 943 200,971 6/30/2024 7,000 6,057 971 200,000 7,000 6,029 12/31/2024 LPC issued the bonds:Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Increase inCarrying Value Carrying value 01/01/2021 $341,728 06/30/2021 $14,400 $17,086 $2,686 344,414 12/31/2021 14,400 17,221 2,821 347,235 06/30/2022 14,400 17,362 2,962 350,197 12/31/2022 14,400 17,510 3,110 353,307 06/30/2023 14,400 17,665 3,265 356,572 12/31/2023 14,400 17,828 3,428 360,000 THA buys back the bonds for $345,005 immediately after the interest payment on 12/31/2021 and retires them. What gain or loss, if any, would THA record on this date? Multiple Choice $3,277 loss. $2,230 gain. $14,995 gain. No gain or loss.Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Increase inCarrying Value CarryingValue 01/01/2021 331,652 06/30/2021 10,500 13,266 2,766 334,418 12/31/2021 10,500 13,377 2,877 337,295 06/30/2022 10,500 13,492 2,992 340,287 12/31/2022 10,500 13,611 3,111 343,398 06/30/2023 10,500 13,736 3,236 346,634 12/31/2023 10,500 13,866 3,366 350,000 What is the annual market interest rate on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) Multiple Choice 6%. 3%. 7%. 8%.
- Tony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Increase inCarrying Value CarryingValue 01/01/2021 332,789 06/30/2021 17,500 19,967 2,467 335,256 12/31/2021 17,500 20,115 2,615 337,871 06/30/2022 17,500 20,272 2,772 340,643 12/31/2022 17,500 20,439 2,939 343,582 06/30/2023 17,500 20,615 3,115 346,697 12/31/2023 17,500 20,803 3,303 350,000 THA issued the bonds for: Multiple Choice $350,000. $332,789. $455,000. Cannot be determined from the given information.Rush issued callable bonds on January 1. 2021. Rush's accountant has projected the following armortization schedule from issuance unti maturity Interest Increase in Expense Carrying Value Carrying Value Date Cash Paid 01/01/2021 06/30/2021 12/31/2021 OG/30/2022 12/31/2022 $16,500 16,500 16,500 16,Se0 16,500 16,500 $18,826 18,966 19,114 19, 271 19,437 19,613 $2,326 2,466 2,614 2,771 2,937 3,11) $313,773 316,099 318,565 321,179 323,950 326, 887 330,000 06/30/2023 12/31/2023 What is the annuai stated interest rate on the bonds? (Hint: Be sure to provide the annual rate rather man the sixmonth rate) (Do not round your intermediote calculetions.) Mutple ChoiceX2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Decrease inCarrying Value CarryingValue 01/01/2021 124,380 12/31/2021 15,000 14,304 696 123,684 12/31/2022 15,000 14,224 776 122,907 12/31/2023 15,000 14,134 866 122,042 12/31/2024 15,000 14,035 965 121,076 12/31/2025 15,000 13,924 1,076 120,000 What is the annual market interest rate on the bonds? Multiple Choice 5.8%. 6.3%. 11.5%. 12.5%.
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)
![Intermediate Accounting: Reporting And Analysis](https://www.bartleby.com/isbn_cover_images/9781337788281/9781337788281_smallCoverImage.jpg)