Magazine issued $300,000 of 15-year, 6% callable bonds payable on July 31, 2018, at 93. On...
Magazine issued $300,000 of 15-year, 6% callable bonds payable on July 31, 2018, at 93. On July 31, 2021, Parkview called the bonds at 101. Assume annual interest payments.
Requirements
|
1. |
Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2021. |
|
2. |
Assume all amortization has been recorded properly. Journalize the retirement of the bonds on July 31, 2021. No explanation is required |
Homework Answers
1)Issue price of Bond =Par value * issue price per 100
= 300000*93/100
= 279000
Discount on bond issued = 300000- 279000= 21000
Amortization of bond discount per year = 21000/15 years = 1400 per year
Total amortization till 31July 2021 (31July 2018-31July 2021 = 3years) = 1400*3=4200
Carrying value of Bond as on 1July 2021 =Issue price +Discount amortized till date
= 279000 + 4200
= 283200
2)
Discount on bond (un-amortized) =21000-4200 = 16800
Loss on retirement of bond =price paid -carrying value
= 303000 - 283200
= 19800
| DATE | ACCOUNT TITLE | DEBIT | CREDIT |
| 31 July 2021 | Bond payable | 300000 | |
| Loss on retirement of bond | 19800 | ||
| Discount on bond payable | 16800 | ||
| Cash (300000*101/100) | 303000 |
Add Answer to:
Magazine issued $300,000 of 15-year, 6% callable bonds
payable on July 31, 2018, at 93. On...
Seeview Magazine issued S690.000 of 15 year, 9% ca able bonds payable on July 31, 2018...
Seeview Magazine issued S690.000 of 15 year, 9% ca able bonds payable on July 31, 2018 at 97 On July 31, 2021 Seav ew called the bonds a 10 Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2021 2 Assume all amortization has been recorded properly. Jounalize the retirement of the bonds on July 31, 2021. No explanation is required. Assume annual interest payments. Requirement 1. Without making journal entries, compute...
On January 1, 2018 Plat Company issued $300,000 of 99% five year bonds payable at 101...
On January 1, 2018 Plat Company issued $300,000 of 99% five year bonds payable at 101 Plat Company has extra cash and wishes to retire the bonds payable on January 1, 2019, immediately after making the second semiannual interest payment lore the bonds Patz pays the market price of 92 Head the remonts (Assume bonds payable are amortized ning the straight line amortization method Requirement 1. What is Plate Company's carrying amount of the bonds payable on the rivement date?...
Scott Matthew, Inc. issued $300,000 of 15%, five-year bonds payable on January 1, 2018. The market...
Scott Matthew, Inc. issued $300,000 of 15%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually. able.) i Requirements le.) 1. (Use the factor tables provided with factors rounded to How much cash did the company receive upon issuance of the bonds payable? (Round to the nearest dollar.) Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments....
E12-19 P oing morsgages payable Kellerman ly payments of for journal 2. 3Joual alyzing alternativ...
I need help with 21,2
3,25,and 26 been really trying with these ones
E12-19 P oing morsgages payable Kellerman ly payments of for journal 2. 3Joual alyzing alternative pians to raise money SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 50),000 shares of com- mon stock. Before any new financing, SB Electronics has net income of $350,000 and 300,000 shares of common...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $2,470,000 of five-year, 6% callable bonds dated July 1, Year 1, at a...
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year 1 July 1. Issued $2,470,000 of five-year, 6% callable bonds dated July 1, Year 1, at a market (effective) rate of 8%, receiving cash of $2,269,661. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond discount amortization of $20,034 is combined with the semiannual interest payment. Dec. 31. Closed the interest expense...
Issued $1,190,000 of five-year, 10% callable bonds dated July 1, Year 1, at a market (effective)...
Issued $1,190,000 of five-year, 10% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $1,145,149. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $310,000 by issuing a 10-year, 7% installment note to Intexicon Bank. The note requires annual payments of $44,137, with the first payment occurring on September 30, Year 2. Dec. 31. Accrued $5,425 of interest on the installment note. The interest is payable on the...
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value...
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest...
please solve these for me,thanks! 2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July...
please solve these for me,thanks!
2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. 1. Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, 2017. July Oct. Dec. 31. Accrued $3,000 of interest on the installment...
Seeview Magazine issued S690.000 of 15 year, 9% ca able bonds payable on July 31, 2018 at 97 On July 31, 2021 Seav ew called the bonds a 10 Requirements 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31, 2021 2 Assume all amortization has been recorded properly. Jounalize the retirement of the bonds on July 31, 2021. No explanation is required. Assume annual interest payments. Requirement 1. Without making journal entries, compute...
On January 1, 2018 Plat Company issued $300,000 of 99% five year bonds payable at 101 Plat Company has extra cash and wishes to retire the bonds payable on January 1, 2019, immediately after making the second semiannual interest payment lore the bonds Patz pays the market price of 92 Head the remonts (Assume bonds payable are amortized ning the straight line amortization method Requirement 1. What is Plate Company's carrying amount of the bonds payable on the rivement date?...
Scott Matthew, Inc. issued $300,000 of 15%, five-year bonds payable on January 1, 2018. The market interest rate at the date of issuance was 12%, and the bonds pay interest semiannually. able.) i Requirements le.) 1. (Use the factor tables provided with factors rounded to How much cash did the company receive upon issuance of the bonds payable? (Round to the nearest dollar.) Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments....
I need help with 21,2
3,25,and 26 been really trying with these ones
E12-19 P oing morsgages payable Kellerman ly payments of for journal 2. 3Joual alyzing alternative pians to raise money SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 50),000 shares of com- mon stock. Before any new financing, SB Electronics has net income of $350,000 and 300,000 shares of common...
Alexander Company issued $260,000, 4%, 10-year bonds payable at 94 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Jounalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018 8. Assume the bonds payable was instead issued at 108. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
Bryant Company issued $80,000, 2%, 10-year bonds payable at 90 on January 1, 2018. 6. Journalize the issuance of the bonds payable on January 1, 2018. 7. Journalize the payment of semiannual interest and amortization of the bond discount or premium (using the straight-line amortization method) on July 1, 2018. 8. Assume the bonds payable was instead issued at 112. Journalize the issuance of the bonds payable and the payment of the first semiannual interest and amortization of the bond...
On January 1, 2018, Mechanics Credit Union (MCU) issued 6%, 20-year bonds payable with face value of $900,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest...
please solve these for me,thanks!
2016 1. Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, 2016, at a mar- ket (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30. 1. Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, 2017. July Oct. Dec. 31. Accrued $3,000 of interest on the installment...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 11 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 11 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 11 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 11 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 11 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 11 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 11 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 11 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 11 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 11 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 11 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 11 months ago