30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,627,273 2234562220002 1 320,000 331,364 11,364 6,638,637 320,000 331,932 11,932 6,650,569 320,000 332,528 12,528 6,663,097 320,000 333,155 13,155 6,676,252 320,000 320,000 333,813 13,813 6,690,065 334,503 14,503 6,704,568 222 ~ ~ 222 ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 320,000 396, 191 76,191 8,000,000 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 4. Interest is determined by what approach? 5. What is the stated annual interest rate? 6. What is the effective annual interest rate? 7. What is the total cash interest paid over the term to maturity?

On 31 December 20X7, Dunder Mifflin has the following bond on the statement of financial position: Bond payable, 8%, interest due semi-annually on 31 March and 30 September; maturity date, 30 September 20X10 $16,000,000 Discount on bonds payable (83,000) $15,917,000 Accrued interest payable of $400,000 was recorded on 31 December 20X7 ($16,000,000 × 10% × 3/12) and the bond discount was correctly amortized to 31 December 20X7. On 31 March 20X8, semi-annual interest was paid and the bond discount was amortized by a further $8,400. Then, 35% of the bond was retired at a cost of $5,488,000 (exclusive of interest).   Required: Provide the entries to record the bond interest and retirement on 31 March 20X8.

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Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected the following amortizatic schedule from issuance until maturity: Cash Effective Decrease in Date Outstanding interest interest balance balance 1/1/2021 24 207,020 6/30/2021 2$ 7,000 $4 6,211 24 789 206,230 12/31/2021 7,000 6,187 813 205,417 6/30/2022 7,000 6,163 837 204,580 12/31/2022 7,000 6,137 863 203,717 6/30/2023 7,000 6,112 888 202,829 12/31/2023 7,000 6,085 915 201,913 943 200,971 6/30/2024 7,000 6,057 971 200,000 7,000 6,029 12/31/2024 LPC issued the bonds:

4. What is the carrying value of the bonds at the end of the second period (third number)? Premium 57,913.01 Carrying value (bonds) 432,913.01 Face Rate Market Rate Semiannual payments a. b. Cash Payment C. d. e. 14% 10% 0 or 1 2 or 3 4 or 5 6 or 7 8 or 9 Interest Expense Today Period #1 26,250.00 Period #2 26,250.00 Carrying value at end of second period (third number) ___________?__ 2. Disc. or Prem. Amort. 21,645.65 21,415.43 Disc. or Prem. 4,604.35 4,834.57 57,913.01 53,308.66 48,474.10 Face Value 375,000.00 375,000.00 375,000.00 Carrying Value 432,913.01 428,308.66 423,474.10

A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to record the redemption would include a Oa. loss on bond redemption of $3,000 Ob. gain on bond redemption of $3,000 Oc. loss on bond redemption of $4,000 Od. gain on bond redemption of $4,000 7 a I' B in 20 D W 14 Previous Next ^04) O

What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is:   a. Bonds Payable            200,000                            Gain on Retirement      of Bonds                                     6,000           Cash                                        194,000             b. Bonds Payable            200,000                            Cash                                        200,000             c. Bonds Payable            200,000                       Loss on Retirement of Bonds                         8,000                            Unamortised Bond      Discount                                     6,000           Cash                                        202,000        d. Bonds Payable            194,000                       Loss on Retirement of Bonds                         8,000                            Cash…

Period Cash Paid Interest Expense Interest in Carrying Value Carrying Value Issue Date       $85,940 1 $4,100 $ 3,438 $662 85,278 2 4,100 3,411 689 84,589 1. & 2. Record the bond issue assuming the face value of bonds payable is $79,000 and first interest payment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)   Record the bond issue.     Event General Journal Debit Credit 1                                               Record the first interest payment.     Event General Journal Debit Credit 2

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Problem 5-15 (AICPA Adapted) On July 1, 2020, Carol Company issued at 104, five thousand 10% bonds with face amount of P1,000 per bond. The bonds were issued through an underwriter to whom the entity paid bond issue cost of P125,000. On July 1, 2020, what is the carrying amount of the bonds payable? a. 4,875,000 b. 5,075,000 c. 5,200,000 d. 5,325,000