The following information is available for compton company retired $45000 of 9.25% bonds before they were supposed to come due. the bonds were retired at 103 (103% of the bond face amount). the loss on the retirement was $3100. based on this information what is the bond book value?
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The following information is available for compton company retired $45000 of 9.25% bonds before they were supposed to come due. the bonds were retired at 103 (103% of the bond face amount). the loss on the retirement was $3100. based on this information what is the bond book value?
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- Godwin corporation retired its bonds at 105 on january 1 after the payment of interest. The face value of the bonds is 580,000. The carrying value of the bonds at retirement is 604,500. The entry ro record the retirement will include a -debit of 24,500 to premium on bonds payable -debit of 29,000 to premium on bonds payable -credit of 4500 to loss on retirements of bonds -credit of 4500 to gain on retirements of bondsSeveral years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,039,000. Required: Record the retirement of the bonds, using a premium account. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 Record the retirement of the bonds, using a premium account. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit View general journal Record entry Clear entryBlossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash (a2) Discount on Bonds Payable Bonds Payable * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing 177310 Debit 489600 20400 Credit 510000
- Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the time of retiring such bonds was $78,693. Record the entry for retirement of bonds. о О Date Description Cash Bonds Payable To record the retirement of bonds before maturity) Date Bonds Payable Gain on Bonds Retirement Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Date Bonds Payable Cash Description To record the retirement of bonds before maturity) Ref. Debit in S) $ Credit(in 5) 78.693 S 78,693 Ref. Debit(in 5) Credit(in 5) $ 78694 S 4,693 $ 74,000 Ref Debit(in S) Credit(in S $ 78,693 $ 78,693 Ref. Debit in 5). Credit in 5) S 74,000 $ 74,000A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of gain or loss would be recorded as part of this transaction? Select the correct answer. loss on bond redemption of $4,365. gain on bond redemption of $5,820. gain on bond redemption of $1,455. loss on bond redemption of $1,455.Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing eTextbook and Media List of Accounts - Your answer is partially correct. Account Titles and Explanation Interest Expense (DZ). Premium on Bonds Payable $ Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Total cost of borrowing Debit eTextbook and Media $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were…
- A company has bonds outstanding with a par value of $100,000. The unamortized discount on these bonds is $4,800. The company calls these bonds at a price of $98,000 the gain or loss on retirement is:The Smart Company sold $500,000 of 8 percent, 20-year bonds on April 1, 2011, at 105. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 7.5 percent. The company's fiscal year ends September 30. Use the effective interest method to calculate the amortization. With regard to the bond interest payment on September 30, 2011: How much is interest expense?A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $271,860. What amount of gain or loss would be recorded as part of this transaction?
- NYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $43 million, but the market value of the bonds is $46 million. The entry to record the retirement will include: Select one: a. A debit of $3 million to Loss on Bond Retirement. b. A credit of $1 million to Gain on Bond Retirement. c. A debit of $1 million to Loss on Bond Retirement d. No gain or loss on retirement e. A credit of $2 million to Gain on Bond Retirement.Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,045,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,010,000. Record the retirement of the bonds, using a premium account.Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual interest. The face value of the bonds is $720000. The carrying value of the bonds at the redemption date is $745200. The entry to record the redemption will include a credit of $10800 to Gain on Bond Redemption. Odebit of $25200 to Premium on Bonds Payable. debit of $36000 to Premium on Bonds Payable. credit of $25200 to Loss on Bond Redemption.