What amount did Mountain receive from the bond issuance?
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- On April 1, 20x9, Mountain Corp. issued 200 of its ₱1,000 face
value bonds at 101 plus accrued interest. The bonds were dated November 1, 20x8, and bear interest at an annual rate of 9% payable semiannually on November 1 and May 1. What amount did Mountain receive from the bond issuance?
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- On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year 1, for $621,430. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, Year 5. Hackman uses the straight-line amortization method. Required: Record the issuance of the bonds and the first two interest payments. Record the issuance of the bonds on January 1 and the first two interest payments on June 30 and December 3On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued interest. Alpha Company paid bond issue cost of P200,000. The bonds were dated November 1, 2008, mature on November 1, 2018, and bear interest at 10% payable semiannually on November 1 and May 1. What is the net amount received by Alpha from the bond issuance?
- On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were issued at face value. They had a 20 year term and a stated rate of interest of 7%. Which of the following shows how the payoff of the bond liability will affect Residence's financial statements on December 31, Year 20 (the maturity date)? A. B. C. D. Balance Sheet Assets = Liabilities + ΝΑ = ΝΑ + NA = ΝΑ 50,000 50,000 (50,000) = (50,000) = Multiple Choice Option A Option B Option C Option D + + Equity Revenues ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ ΝΑ NA Income Statement Expenses = ΝΑ ΝΑ ΝΑ ΝΑ ||| || || || || = = = = Net Income ΝΑ ΝΑ ΝΑ ΝΑ Statement of Cash Flows (50,000) IA (50,000) IFA 50,000 IA (50,000) FAAnswer full question.On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $4,300,000. The bonds pay interest semiannually. The market rate of interest is 9.5% and the bond selling price was $4,007,812. The bond issuance should be recorded as: Multiple Choice Debit Cash $4,007,812; debit Interest Expense $292,188; credit Bonds Payable $4,300,000. Debit Cash $4,007,812; credit Bonds Payable $4,007,812. Debit Cash $4,300,000; credit Bonds Payable $4,007,812; credit Discount on Bonds Payable $292,188. Debit Cash $4,300,000; credit Bonds Payable $4,300,000. Debit Cash $4,007,812; debit Discount on Bonds Payable $292,188; credit Bonds Payable $4,300,000.
- On January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $574,368. Requireda. Prepare the journal entry for the issuance of the bonds.b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)16 )The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998: Face Amount ₱800,000 Terms 10 years Stated interest rate 6% Interest payment dates Annually on July 1 Yield 9% What should be the issue price for each P1,000 bond?
- On March 31, 20x7, KEEPU issued for P1,774,000, P2,000,000 face amount of its 10%, P1,000 bonds. The bonds were issued to yield 12%. The bonds are dated July 1, 20x7 and mature on July 1, 20x10. Interest is payable annually on July 1. KEEPU uses the interest method to amortize bond discount. Determine the interest expense of the Bonds on December 31, 20x8. Determine the carrying value of the Bonds on December 31, 20x7.Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated interest rate of 7 percent and a five-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight- line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement. Complete…On March 1, 2006, Cain Company issued at 103 plus accrued interest 4,000 of its 9% P1,000 face value bonds. The bonds are dated January 1, 2006 and mature on January 1, 2016. Interest is payable semiannually on January 1 and July 1. Cain paid bond issued cost of P200,000. Cain should realize net cash receipts from the bond issuance of
