The following information is the same as the previous question.A Company issued a bond payable with detachable warrants on January 1, 20X1 as follows.Bond payable ($1,000 par value; 400 bonds)Coupon rateBond issue priceFair value of the bonds after issuanceTermNumber of detachable warrants per bond$400,0004.70%$414,000$390,00010 years50$2.00$15.00Fair value of the warrants after issuanceStock purchase priceWarrants exercised5,000warrant = 1 share of $1 par value stockWhat is the credit to additional paid in capital at the time the warrants are exercised on June 30, 20X1?

The additional paid in capital can be defined as the difference between the price paid by the…

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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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Accounting Randolph Company issued $1,000,000 of 6.5%, 8-year bonds dated June 1, 20X3, with semiannual interest payments on June 1 and December 1. The bonds were issued on June 1, 20X3, at 103 3/8. a. Were the bonds issued at a premium, a discount, or at face value? b. Was the market rate of interest higher, lower, or the same as the coupon rate of interest? c. How much cash was received by Randolph Company upon issuance of the bonds
What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $103,769 and the interest is to be paid semiannually? debit cash, $100,000, and credit bond payable $100,000 debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769 debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000 debit cash $103,769 and debit discount on bonds payable $3,769, and credit bonds payable $100,000
On January 1. Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7% Based on this information, the carrying value of the bond liability on January 1, Year 6 is Multiple Choice $50.000 D147,500 $48,000 $48.500
Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 9%, 10-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 9%. Interest is paid semiannually. What is the issue price of the bond? When the company records the 2nd interest payment, how much will the company record for 8. $ 9. $ interest expense? 10. $ . What is the bond liability (carrying amount) after the 2nd interest payment?
1->> O O O Baxter's Hamburgers issued 6%, 10-year bonds payable at 95 on December 31, 2024. At December 31, 2026, Baxder reported the bonds payable as follows: (Click the icon to view the bonds payable.) Requirement 1. Answer the following questions about Baxter's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2026? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? Requirement 2. Record the June 30, 2026, semiannual interest payment and amortization of discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date 2026 Jun. 30 Accounts and Explanation Debit Baxter's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Credit D
A bond issue of 4%, 8-year bonds with a face value of $43,000 with interest payable annually on January 1. Market interest rate is 6%. What is the present value of the bonds? (For calculation purposes, use five decimal places as displayed in the factor table provided. Round your answers to O decimal places (e.g., 5,275).) Click here to view the factor table. Present value of interest payments $ Present value of principal $ Present value of the bonds $ 69
On April 30, Year 6, Tuesday Ltd. issued $1,000,000 of 20-year bonds paying interest twice a year on October 31 and April 30. The coupon rate is 5%, and the market rate was 7%. The bonds were issued at 78.6449. Required a. Calculate the issue price. Round your numbers to the nearest dollar. b. Prepare a bond amortization table for the initial issue of the bonds and the first four interest periods. c. Using the net method, prepare journal entries for the issue of the bonds and the following: • Interest payment on October 31, Year 6⚫ Interest accrual, rounded to 2 months, on December 31, Year 6 ⚫ Interest payment on April 30, Year 7⚫ Interest payment on October 31, Year 7 • Interest accrual on December 31, Year 7
A company issued 7% 9-year bonds with a face amount of $70,000 for $65,567 On January 1 2024. The market intrest rate for bonds of similar risk and maturity is 8% intrest is paid semianually on june 30 and december 31 Required: Record the bond issue and first intrest payment on june 30 2024
2. Deccan Corporation issued 10% 1,000,000 bond on January 1.2011 The market rate of interest is 12% Interest is paid semi annual The term of the bond is 5 years. V. How much would an investor pay for this bond? VI. Make Journal entries to record the receipt of cash from the sale of the bond in Deccan Corporations books VII. Amortize the bond discount over the term of bond using a. Straight line Method b. interest rate method VIII. Make Journal entries to record the payment of interest on 31 December 2011.
Prepare transactions according to the Generally Accepted Accounting Principles. please answer with computation , explanation , formula answer in text please answer correctly and completely thanks

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