4. On July 1, 2024, Howe Co. issued 300 of its 10%, $1000 face value bonds at 99 plus accrued interest. The bonds aredated on April 1, 2024 and mature on April 1 2032. Interest is payable semi-annually on April 1 and October 1 of eachyear. What amount of total cash did Howe receive on July 1, 2024?(A) $289,500(B) $297,000(C) $300,000(D) $304,500(E) None of the above.

The objective of the question is to calculate the total cash received by Howe Co. on July 1, 2024,…

Answered: 4. On July 1, 2024, Howe Co. issued 300…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000 bonds. The bonds are dated January 1, 2021 to mature on January 1, 2031. Interest is payable semi-annually on January 1 and July 1. From the bond issuance, how much cash did FLAXSEED receive? (Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)
Lexy Company issued P 10,000,000 of 10-year, 9% bonds on March 1, 2020 at 97 plus accrued interest. The bonds are dated January 1, 2020, and pay interest on June 30 and December 31. What is the total cash received on the issue date? *a. P 9,700,000b. P 10,225,000c. P 9,850,000d. P 9,550,000
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
On January 1, 2016, Phoenix Corporation issued 10-year $200,000 bonds with a 6% stated rate of interest at 103. Phoenix Corporation pays the interest annually on December 31 and uses the straight-line amortization method. What is the carrying value of the bonds that Phoenix Corporation will report on its balance sheet at the end of 2017? A. $200,000 B. $206,000 c. $204,800 d. $207,200
Blossom Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a)
3. On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable semi-annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR Dec. 31, 2018: to record the amortization & payment of interest to bondholders: DR…
On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of $160 million. • The bonds were priced at $143.50 million (plus accrued interest) to yield 12%. • The price if issued on January 1 would have been $140.75 million. • Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September 30, 2024? Note: Enter your answers in whole dollars. Negative amounts should be indicated by a minus sign. Balance sheet: Bonds payable (net) Interest payable Income statement: Interest expense Statement of cash flows:
The following section is taken from Crane's balance sheet at December 31, 2024. Current liabilities Interest payable Long-term liabilities Bonds payable (9%, due January 1, 2028) (a) (b) $41,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (c) 510,000 Journalize the payment of the bond interest on January 1, 2025. Assume that on January 1, 2025, after paying interest, Crane calls bonds having a face value of $105,000. The call price is 105. Record the redemption of the bonds. Prepare the adjusting entry on December 31, 2025, to accrue the interest on the remaining bonds.
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On October 1, 2020, ABC Company issued P1,000,000 face value bonds paying 12% interest every January 1 and July 1 of each year. These bonds were issued at 95 plus accrued interest and will mature after 5 years. What amount of cash did ABC Company receive on January 1, 2020?
June Company issued P4,000,000 of 8.5%, 5-year bonds on April 1, 2023. Interest payment dates are April 1 and October 1. With a 9% market rate of interest, the bonds were sold for P3,926,000. On November 1, 2026, P2,000,000 of the bonds were retired at face value plus accrued interest.How much gain or loss should June Company record upon retirement of these bonds? 8,808 loss 8,808 gain 9,499 loss 5,359 gain

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