The company adopts the calendar year as its reporting period.18. What is the carrying value of the remaining bonds as of 12/31/2017?a. 7,000,000b. 7,303,037c. 7,275,613d. 7,210,000e. None of these(letter only)Answer:19. What is the gain or loss on bond redemption?a. 69,873b. (156,643)c. 60,000d. (60,000)e. None of these You found the following ledger account balances of ABC Corporation:12% Bonds Payable, due March 31, 202010/1/173,060,0003/31/1510,000,000Premium on Bonds Payable3/31/15772,144Bond Interest Expense3/31/17600,0009/30/17600,000The bonds pay interest semiannually on March 31 and September 30. The bonds were issued on March 31 at a price yield 10%.On October 1, 2017, P3,000,000 of the bonds were redeemed for permanent cancellation at 102.

1. Carrying value of the remaining bond = 10000000 - 3000000 = 7000000 Correct option is a) 7000000

The company adopts the calendar year as its reporting period. 18. What is the carying value of the remaining bonds as of 12/31/2017? a. 7,000,000 b. 7,303,037 c. 7,275,613 d. 7,210,000 e. None of these (letter only) Answer: 19. What is the gain or loss on bond redemption? a. 69,873 b. (156,643) c. 60,000 d. (60,000) e. None of these

The company adopts the calendar year as its reporting period. 18. What is the carying value of the remaining bonds as of 12/31/2017? a. 7,000,000 b. 7,303,037 c. 7,275,613 d. 7,210,000 e. None of these (letter only) Answer: 19. What is the gain or loss on bond redemption? a. 69,873 b. (156,643) c. 60,000 d. (60,000) e. None of these

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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