The 12% bonds payable of Amman Co. had a carrying amount of €166,400 on December 31, 2018. The bonds, which had a face value of €160,000, were issued at a premium to yield 10%. Amman uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2019, several years before their maturity, Amman retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is

Q: On January 1, 2021, Kaye Ltd. purchased $250,000 of Danford Co.'s 4%, 8-year bonds.  The market rate…

A: Under Effective Interest Rate Method , Interest Income/Expense will be recognized at Market Rate.

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: a. Jason Allen Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2025. The bonds were…

A: Bonds refer to the debt instruments issued either by the government or corporations. The bonds are…

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 8% bonds with a book value of…

A: A bond is the long-term debt of an entity. The bonds are paid in more than one year. The bonds…

Q: On January 1, 2020, Bridgeport Corporation issued $5,180,000 of 10% bonds at 102 due December 31,…

A: Bonds refer to a security issued by the lender to the borrower while providing money for a certain…

Q: On September 1, 2019, PT XYZ purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for…

A: Year Coupon @ 4.5% Present Value factor @4% Present Value Mar-20 27         0.962         25.96…

Q: The 8% bonds payable of Bonita Industries had a net carrying amount of $2860000 on December 31,…

A: Computation of the loss on the retirement of the bonds are as follows:

Q: On January 1, 2025, Sunland Co. redeemed its 15-year bonds of $7090000 par value for 102. They were…

A: Step 1: Compute the total discount on bonds payable:Step 2: Compute the discount amortized till…

Q: On the first day of 2021, Rooney Inc had outstanding $1,000,000 of 9% bonds with a book value of…

A: Explanation: We should compare the amount we pay for the bonds and the book value of the bonds:…

Q: The 10% bonds payable of Coronado Industries had a net carrying amount of $3000000 on December 31,…

A: Bonds are units of corporate debt issued by companies and securitized as tradeable assets. A bond is…

Q: On September 1, 2019, PT ABC purchased 600 of the Rp1.000 face value, 9% bonds of PT DEF for…

A: Answer An amortized bond is one in which the principal (face value) on the debt is paid down…

Q: The Pronghorn Company issued $390,000 of 11% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds issue result in discounts when the selling price is lower than the face value. The premium or…

Q: The Pronghorn Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…

A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 1, 2025, Blossom Co. redeemed its 15-year bonds of $7130000 par value for 101. They were…

A: In accounting, bonds refer to a type of long-term debt that a company issues to raise capital. A…

Q: On July 1, 2023, DDJ Limited issued bonds with a face value of $900,000 due in 20 years, paying…

A: Bonds are issued below the face value than this is dicount and this is due to the higher interest in…

Q: Jim Company issued P 4,000,000 of 8 ½%, 5- year bonds on March 1,2018. Interest payment dates are…

A: Since we answer only up to three sub-parts, we shall answer the first three. Please resubmit a new…

Q: 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31,…

A: Bond retirement means paying off the bond obligations to the investors. The bond requirement may…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 1, 2018, Naomi, Inc. issued $1,000,000, 4% bonds when the market rate was 6%.  Interest…

A: Honor code- “Since you have posted a question with multiple sub-parts, we will provide the solution…

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A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

Q: On March 1, 2017 Betts Co. issued $500,000 of 6% three-year bonds plus accrued interest. The bonds…

A: The bond premium is amortized by deducting the premium amount from the carrying value of the bond…

Q: Sheridan Company received proceeds of $812000 on 10-year, 8% bonds issued on January 1, 2019. The…

A: In the straight-line method of amortization, an equal amount of discount or premium on the issue of…

Q: The Blossom Company issued $310,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Face value of bonds$310,000Issued at99Proceed received from issuance of bonds ($310,000 *…

Q: On January 1, 2020, Carla Corporation issued $4, 920,000 of 10% bonds at 103 due December 31, 2029.…

A: There are a number of expenses involved in the process of issuing and selling bonds to investors…

Q: MSG Corporation issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2020 for $106,000.…

A: When issue price is greater than the face value then it means the bonds are issued at a premium. The…

Q: On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104. Issuance costs amounted…

A: Retirement of bonds occurs when the company repurchases its own issued bonds.

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: Dahlia Company purchased a P2,000,000 12% face value bonds, 10 years, on April 1, 2019 for…

A: Amortization on bonds is the the matching the carrying value of bonds to the maturity of the bonds.…

Q: Sheffield Corp. issues $6000000 face value of bonds at 96 on January 1, 2019. The bonds are dated…

A: The bonds may be issued at a discount when the interest offered by bonds is lower that the interest…

Q: anuary 1, 2020, Splish Company purchased $300,000, 6% bonds of Cabana Co. for $313,128. The bonds…

A: Amortization is an accounting procedure that is used to reduce the market valuation of a loan or an…

Q: re on January 1, 2032, but were redeemable at 101 any time after December 31, 2025. Interest was…

A: A bond is a fixed-income security that reflects an investor's debt to a borrower.

Q: s when the bonds were issue to the market. These will be amortized ing amortized on a straight-line…

A: Loss of redemption is the difference between carrying or book value of bond and redemption value.…

Q: Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid…

A: Bond is an investment security which provides a regular interest income at fixed rate to the bond…

Q: On January 1, 2021, Shay Company issues $300,000 of 10%, 15-year bonds. The bonds sell for $293,250.…

A: Bonds are the financial debt instruments which are issued with the purpose of raising the money from…

Q: The Bridgeport Company issued $230,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Didde Company issues $20,000,000 face value of bonds at 96 on January 1, 2013. The bonds are dated…

A: Bonds -Corporations issue bonds, which are traded assets that are securitized. Since bonds have…

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of…

A: Compare the amount paid for the bonds and book value then we get the loss To calculate book value,…

Q: On March 1, 2022, Havenford Corporation issued $240,000, 4 year, 6% bond. Interest is to be paid…

A: 3) Record the journal entries are as follows : Date Account Dr Cr    Cash$248,604.16     Bonds…