Blue Company reported the following financial liabilities on December 31, 2020: 9% debentures, callable in 2021, due in 2022 11% collateral trust bonds, convertible into share capital beginning in 2021, due in 2022 10% debentures, P300,000 maturing annually 3,500,000 3,000,000 1,500,000 What is the total amount of term bonds? 3,000,000 b. a. 3,500,000 5,000,000 d. 6,500,000 с.
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- Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortizationPlease answer subparts 2b,3 ASAP. On January 1, 2021, Instaform, Inc., issued 12% bonds with a face amount of $75 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 14%. Interest is paid semiannually. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 2-b. Assume the market rate was 11%. Prepare the journal entry to record their issuance by Instaform.3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.IT Corporation December 31, 2018 balance sheet contained the following items in the long-term liabilities section: 10% registered bonds, callable in 2019, due in 2023, secured by machinery 3,000,000 11% bonds, convertible into common stock beginning in 2018, due in 2025, secured by realty 5,000,000 12% collateral trust bonds (P50,000 maturing annually) 7,000,000 What are the total amounts of IT’s secured bonds? Group of answer choices 12,000,000 15,000,000 8,000,000 10,000,000
- A 12% P1,000,000 face value bond with interest payable June 30 and December 31, which matures on June 30, 2026, was purchased at 95 for short term investment purposes on June 30, 2021. At the end of December 31, 2021, the bonds were quoted at 110. By June 30, 2022, all the bonds were sold at 115. How much would be the total cash that would be received by June 30, 2022? 1,000,000 1,100,000 O 1,150,000 O 1,210,000st ve this K Kendrick Corporation issued $660,000 of 7%, 10-year bonds payable on March 31, 2019. The market interest rate at the date of issuance was 9%, and the bonds pay interest semiannually Kendrick Corporation's year-end is March 31 Read the requirements. 1. Using the PV function in Excel", calculate the issue price of the bonds. (Round your answer to the nearest whole dollar) The issue price of the bonds is 5 Demodocs ex Requirements 1. Using the PV function in Excel, calculate the issue price of the bonds. 2. Prepare an effective-interest amortization table for the bonds through the first three interest payments. Round amounts to the nearest dollar. 3. Record Kendrick Corporation's issuance of the bonds on March 31, 2019, and payment of the first semiannual interest amount and amortization of the bond i discount on September 30, 2019 Explanations are not required. X k answer correct: 3 (1)MC29 The statement of financial position of Denver Company at December 31, 2020 showed, among others, the following items under its liabilities section: 10% mortgage bond due P500,000 annually beginning October 1, 2021 12% convertible bonds, due on June 30, 2023 (Each P1,000 bond is convertible into 10, P100 par ordinary shares) 10% collateral trust bonds due on July 16, 2022 3,000,000 P2,000,000 1,500,000 How much are Denver Company's total debenture bonds and serial bonds, respectively? P4,500,000 and P2,000,000 P1,500,000 and P2,000,000 P1,500,000 and P3,000,000 PO and P2,000,000 a. b. С. d.
- 18 A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are P4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2022 statement of financial position? 4,903,160.00 4903160 4,903,160 4903160Anya Company disclosed the following accounts on December 31, 2020: 12% Bonds Payable- Due January 1, 2023 Jan 1, 2020 Jan 1, 2013 6,000,000 P3,000,000 face amount purchased at 90 and retired 2,700,000 Discount on Bonds Payable Jan 1, 2013 300,000 Required: Compute the balance of bonds payable and discpunt on bonds payable on December 31, 2020. The staright line method of amortization is used. Compute bond interest expense for the year ended December 31, 2020. Interest is payable semiannually on Jnaury 1, and July 1. Prepare adjusting entries on December 31,2020.A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are P4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2022 statement of financial position? Group of answer choices 4,903,160 4,903,160.00 4903160 4903160
- Problem 5: On January 1, 2021, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of P8,000,000. The bonds mature on December 31, 2026. For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semi-annually on June 30 and December 31. (Use at most, 4 decimal places for PV factors) J. Prepare the journal entries for 2021 K. Compute or provide the answers for the following: 22. Determine the price of the bonds on January 1, 2021. 23. How much is the interest expense for the year ended, December 31, 2021? 24. How much is the interest expense for the year ended, December 31, 2022? 25. What is the carrying amount of the bonds on December 31, 2022?Anya Company disclosed the following accounts on December 31, 2020. 12% Bond Payable-Due Jan. 1, 2023 Jan. 1, 2020 Jan. 1, 2013 6,000,000 P3,000,000 face amount purchased at 90 & retired 2,700,000 Discount on Bonds Payable Jan. 1, 2013 300,000 Answer and give computation on the following requirements: Compute the balance of bonds payable & discount on bonds payable on Dec. 31, 2020. The straight-line method of amortization is used. Compute the bond interest expenses for the year ended Dec. 31, 2020. Interest is payable semi-annually on Jan. 1 & July 1 Prepare adjusting entries on Dec. 31, 2020Problem #3 On July 1, 2019, Cody Company paid P1,198,000 of 10%, 20 year bonds with face amount of P1,000,000. Interest is paid on June 30 and December 31. The bonds were purchased to yield 8%. The effective interest method is used to recognize interest income from this long-term investment. What is the carrying amount of the investment in Bonds on December 31, 2019?
