Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption? Oa. $500 loss Ob. $15,500 gain Oc. $500 gain Od. $15,500 loss

Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the amount of gain or loss on redemption? Oa. $500 loss Ob. $15,500 gain Oc. $500 gain Od. $15,500 loss

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Answer.

A: Carrying Value of Bonds: The carrying value of bonds is determined by subtracting the unamortized…

Q: Required For each of the following situations, calculate the amount of bond discount or premium, if…

A: Formulas used; If Issue price is greater than face value then the resultant value will be premium.…

Q: If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is 4 Oa.…

A: The bonds' face value is $100 per bond. Bonds are issued at a premium of $2.75 at a total issue…

Q: 2019 RENTALS S $490,000 bond issue on which there is an unamortized discount of $33,000 is redeemed…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

Q: Assignment Q. = Ken recieved 30000 of interest from corporate bonds and money market accounts. Ans &…

A: Step1 Form no 1040 is the IRS form for the Individuals of United States, in this form individuals…

Q: Company WQE Face Value Maturity (Yrs) $ 1,000,000 Bank Loan 15 Bond $ 10 750,000 80,000 Interest…

A: We need to compute market value of debt for the given information.

Q: If the bonds payable account has a balance of $100,000 and the premium on bonds payable account has…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: How much gain or (loss) should be recognized on the sale of Orange bonds? 2. How much unrealized…

A: Bond The purpose of issuing the bond is to generate the income to issue the debit which are utilized…

Q: Company XYZ Bank Loan Face Value Maturity (Yrs) 190,000 $ 7 Bond 350,000 10 Interest Expense Cost of…

A: We need to calculate market value of debt for the given information

Q: 12/31, a bond (Trading) has an amortized cost/FV of $800,000/ $825,000. Its FV adj. account had a…

A: Unrealized gain / (loss) on investment = Fair value - Cost - Debit Balance of FV Adj. account +…

Q: Reporting Issuance and Retirement of Long-Term Debt On the basis of the details of the following…

A: Statement of cash flows is one of the financial statement of business. It shows all cash inflows and…

Q: Items 1 to 4 are based on the following information. On December 31, 2020, Fuslie Company issued…

A: Bonds are financial instruments issued to raise funds in consideration of interest payment. Bonds…

Q: On January 1, Year 1, DIBA Company had a balance of $464,000 in its Bonds Payable account. During…

A: Answer - Cashflow from Financing Activities indicates cash flows between a business, its owners,…

Q: If $800,000 of 11% bonds are issued at 102 3/4, the amount of cash received from the sale is Oa.…

A: Given, Bonds = $800,000 of 11% Rate = 102 3/4 = 102.75%

Q: If bonds with a face value of $124000 are converted into common stock when the carrying value of the…

A: Each of these transactions requires a diary entry. It's vital to remember that we're looking at the…

Q: If 70 $1000 bonds with a carrying value of $84000 are redeemed for $79000, the journal entry to…

A: The bonds are issued at the premium when market rate is lower than the coupon rate of bonds payable.…

Q: Hh1.

A: Redemption is described as the repayment of any security issued or debt issued, or any bonds issued…

Q: The following is the partial bond discount amortization schedule for Monty Corp. Monty uses the…

A: As per nominal account rule we should debit all expenses and losses and credit all incomes and…

Q: Consolidated amounts when affiliate's debt is acquired from non-affiliate Assume that a Parent…

A: Consolidation:Consolidation refers to the merging of two or more financial items such as assets,…

Q: A $500,000 bond issue on which there is an unamortized discount of $34,000 is redeemed for $473,000.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: If $1,140,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is…

Q: An investor purchases bonds with a face value of $100,000. Payment for the bonds includes (a) a…

A: IF AN INVESTOR PURHASES BONDS, THEN IF THE BONDS ARE PURCHASED AT PREMIUM THEN PREMIUM PAID WILL…

Q: QUESTION 10 A $545,000 bond issue on which there is an unamortized discount of $44,000 is redeemed…

A: Bonds payable = $ 545000 Discount = $ 44000 Cash = $ 474000

Q: A company has bonds outstanding with a parvalue of $100,000. The unamortized premium on these bonds…

A: Unamortized premium on bonds is calculating by deducting the bond's price at actual face value at…

Q: If $470,000 of 10% bonds are issued at 97, the amount of cash received from the sale is Oa. $470,000…

A: Amount of cash received on issue of bond = issue price of bonds

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: The difference between the par value received on bonds issued and the premium on bonds payable…

Q: If $1,178,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is a.…

A: The question is asking us to calculate the amount of cash received from the sale of bonds. The bonds…

Q: A $400,000 bond issue on which there is an unamortized premium of $25,000 is redeemed for $450,000.…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Eddie Industries issues $903,000 of 8% bonds at 103. The amount of cash received from the sale is…

A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…

Q: If $1,000,000 of 10% bonds are issued at 98, the amount of cash received from the sale is: Oa.…

A: Bond refers to a promise that the borrower will pay the lender the amount of face value along with…

Q: milar risk and maturity the market yield was 9 semiannually on June 30 and December 31. ines…

Q: On the basis of the details of the following bonds payable and related discount accounts, indicate…

Q: A $940,000 bond issue on which there is an unamortized premium of $68,000 is redeemed for $761,000.…

A: Loss on redemption of bonds = Face value of bonds + Unamortized Premium on Bonds Payable - Cash paid…

Q: Redemption of Bonds Payable A $940,000 bond issue on which there is an unamortized premium of…

A: In the given question, the company amortized bonds having face value of $ 940,000 and unamortized…

Q: Bonds with a face value of $1,000 were issued for $1,080. Which ONE of the following would be…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: 6. MC.11.166 If $1,000,000 of 8% bonds are issued at 98 1/2, the amount of cash received from the…

A: In this numerical has covered the concept of Bond Payable .

Q: f $800,000 of 11% bonds are issued at 102 3/4, th

A: Answer : Amount of cash received from the sale bond = value of bond * (Issue price of bond / Face…

Q: 1c. Sold $80,000 of the bonds at 101 plus accrued interest of $250. DATE Debit Credit X/X

A: Face value of the bonds = $80,000 Selling price of the bonds = Face value of the bonds x 101% =…

Q: If $1,059,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is a.…

A: The amount of the cash received from the sale of the bond is determined by multiplying the face…

Q: 8. A bond issued with a par value of $200,000 and a carrying amount of $195,500 is retired at 98.5.…

A: The bonds are the financial instruments for the business used to raise the money from the market or…

Q: Redemption of Bonds Payable A $880,000 bond issue on which there is an unamortized premium of…

A: In the given problem, the bond has been redeemed at a price less than face value. The bond payable…

Q: If $1,153,000 of 9% bonds are issued at 102 1/2, The amount of cash received from the sale is…

A: Bonds are considered a cheaper source of finance. It is because the interest on bonds is a…

Question

Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $15,500. If the issuing corporation redeems the bonds at 98 1/2, what is the
amount of gain or loss on redemption?
a. $500 loss
Ob. $15,500 gain
Oc. $500 gain
Od. $15,500 loss
43
0
77777777777

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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
Eddie industries issue 861000 of bonds at 102. The amount of cash received from the sale is
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
A company has callable bonds outstanding with a par value of $100,000 The unamorticed discount on these bonds is $1,500. The company called to retire these bonde and paid a cal premsum (bonus) of $3,000 What is the gain or loss on this retirement? OA $3.000 koss OB 50 gain or loss OC. $4,500 loss OD. $1,500 gain
Blossom Company has $2080000 of bonds outstanding. The unamortized premium is $30000. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? $9200 gain $20800 loss $20800 gain $9200 loss
Presented below is the partial bond discount amortization schedule for Pharoah Corp. Pharoah uses the effective-interest method of amortization. Interest Periods Issue date 1 2 Interest to Be Paid $117,000 117,000 Interest Expense to Be Recorded $124,981 125,380 Discount Amortization $7,981 8,380 Unamortized Discount Debit $100,383 92,402 84,022 Bond Carrying Value Credit $2,499,617 2,507,598 (a) Prepare the journal entry to record the payment of interest and the discount amortization at the end of period 1. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation 2,515,978
Reporting issuance and retirement of ling-term debt On the basis of the details of the following bonds payable and related descount aacounts,indicates the items to be reported in the "Cash flows from financing activities" section of the statement of cash flows, assuming no gain or loss on retiring the bonds:
B4.
36
Question Content Area The following information relates to the Davensmith Company: Interest payable, beginning of period $ 60 Bond discount amortization, end of period 40 Interest payable, end of period 10 Total interest expense reported on the income statement 850 Bond discount amortization, beginning of period 70 What was the amount of interest paid? $820 $870 $830 $850