uary 1, 2020 Wyatt Company issues $800,000 of 6% bonds due in 12 years, with interest payable on June 30 and December 31 each year. Lowden Inc. purchases all the bonds in a private placement. Assuming the market rate of interest on the issue date is 8%, Lowden will purchase the bonds for $697,497. Calculate the amount of interest revenue that Lowden Inc. would record for the December 31, 2020 interest payment. (round to the nearest dollar). O $28,400 O $24,000 O $27,900 O $28,056 O None of the above.

uary 1, 2020 Wyatt Company issues $800,000 of 6% bonds due in 12 years, with interest payable on June 30 and December 31 each year. Lowden Inc. purchases all the bonds in a private placement. Assuming the market rate of interest on the issue date is 8%, Lowden will purchase the bonds for $697,497. Calculate the amount of interest revenue that Lowden Inc. would record for the December 31, 2020 interest payment. (round to the nearest dollar). O $28,400 O $24,000 O $27,900 O $28,056 O None of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On June 30, 2021, the market interest rate is 10% Team Corporation issues $500,000 of 11%, 25-year bonds payable. The bonds pay interest on June 30 and December 31. The company amortizes bond premium using the effective-interest method Read the requirements Requirement 1. Use the PV function in Excel to calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is
BMT Company issued P5,000,000, 12%, 20-year bonds at 102 plus accrued interest on February 1, 2021. The bonds are dated January 1, 2021 and pay interest semi-annually every June 30 and December 31, Transaction costs totaled P50,000. How much accrued interest on the bonds shall BMT Company collect from the investor on February 1, 2021?
On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
On January 1, 2019, Mitsubishi Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2029 for P8,451,000 to yield an effective rate of 10%. Mitsubishi Company uses the effective interest method. Interest is payable annually on December 31. At December 31, 2019, what is the balance of the discount on bonds payable?
On January 2, 2021, A Corporation offers to sell a P100,000 bond coming due in 10 years. The bond pays interest of 4% at the end of each year. A Corporation finds a buyer who wants to earn 7% each year, and agrees to the 7% rate at a sales price of P80,000. On the December 31, 2021 balance sheet, what amount is reported for the liability of this bond? a. 96,000 b. 93,000 c. 85, 600 d. 83,200
On January 1,2018 always corporation issues 3200,000 5 year 12% bonds for $3,140,000. Interest is paid semi annually on January 1 and July 1. Always corporation used the straight line method of amortization. The company's fiscal year ends on December 31. The amount of discount amortized on July 1,2019 is -12,000 -60,000 -6,000 3,000
On January 1, 2021, Gibson Company issues $5,000,000 of 10 year bonds at an issuance price of 98. The bonds pay interest on June 30 and December 31. The stated interest rate in 8%. Make the journal entries for: January 1, 2021 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 December 31, 2030 when the bonds mature.
On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Sunny Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800
On January 1, 2024, White Water issues $490,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7% and the bonds issued at $535,061. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $529,343 on December 31, 2026. (Round your final answers to the nearest whole dollar.)
please answer
please fill the pictures out Quatro Company Issues bonds dated January 1, 2021, with a par value of $790.000. The bonds' annual contract rate Is 9%, and Interest Is pald semiannually on June 30 and December 31. The bonds mature In three years. The annual market rate at the date of Issuance Is 8%, and the bonds are sold for $810.694. 2 How much total bond Interest expense will be recognized over the Iife of these bonds? 3. Prepare a straight-line amortization table for these bonds.
Pearl Company sells 9% bonds having a maturity value of $1,610,000 for $1,435,895. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Year Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 LA Cash Paid INI $ LA Schedule of Discount Amortization Straight-Line Method Interest Expense LLLLLL $ Discount Amortized Carryi Amount of