Answered: Bonds Payable has a balance of…

Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?

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: e the incremental method to record the issuance of the bonds and warrants.

A: Solution Working note Method to be used =incremental method to record the issuance of the…

Q: Answer.

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

Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…

A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…

A: the amount related to the bond issue : 1) Face amount is $26,000,000

Q: Wildhorse Corporation issued $300,000 of 10-year bonds at a discount. Prior to maturity, when the…

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

Q: A $525,000 bond issue on which there is an unamortized discount of $43,000 is redeemed for $470,000.…

A: Bond:A bond is simply referred as a debt security that represents a loan made by an investor to a…

Q: Waterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not…

A: SOLUTION- JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL…

Q: Your answer is correct. Prepare the journal entry to record the redemption of the bonds at maturity,…

A: Gain on redemption of bonds = carrying value of bond payable + unamortized premium on Bonds payable…

Q: On January 1, Oriole Corporation issued $4100000, 14%, 5-year bonds with interest payable on…

A: The bonds payable are the long-term liabilities of the business. The bonds are issued at premium…

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: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000.…

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

Q: Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for…

A: Bonds is a financial debt instrument that pays fixed periodic interest and face value amount at the…

Q: Hh1.

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

Q: On January 1, 2025, Blue Company sold 11% bonds having Prepare a schedule of interest expense and…

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

Q: If bonds are issued between interest dates, the entry on the bocC of the issuing corporation could…

A: Interest is calculated on face value of a bond.

Q: A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to…

A: Solution: Redemption amount of bond = $296,000*103% = $304,880 Carrying amount of bond = $307,544

Q: a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual…

A: Face Value of Bonds = $27,900,000Maturity in years = 5Coupon Rate = 5%Interest is paid =…

Q: BE11.1 (LO 2) Meera Ltd. issued 4,000, 8%, 5-year, £1,000 bonds dated January 1, 2020, at 100.…

A: The bonds are the financial instruments used to raise money from the market.

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: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…

A: Proceeds from redemption = $294,000 * 98/100 = $288,120

Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…

A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…

Q: 3. Terry Company is authorized to issue P5,000,000 of 6%, 10- year bonds dated July 1, 2011 with…

A: Bonds Payable - Bonds Payable is the liability of the company to be reported in the balance sheet.…

Q: 1. Bonds payable with a par value of $10,000 and a premium on bonds payable of $240. 2. Bonds…

A: The question asks how to report bonds payable in the long-term liabilities section of the balance…

Q: Journalize the redemption of the bonds

A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…

Q: If bonds are issued at 103, this means that: OA) The bond rate of interest is 10.3% of the market…

A: The bonds are the Financial instruments that are issued to raise the money from the market or…

Q: On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: A $540,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $465,000.…

A: General Journal Debit Credit Bonds Payable $540,000 Discount on Bonds Payable $35,000 Gain…

Q: A $515,000 bond issue on which there is an unamortized discount of $41,000 is redeemed for $473,000.…

A: Given that: Bond value = $515000 Unamortised discount = $41000 Redemption value = $473000

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: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…

A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…

Q: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31.…

A: Given is: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober…

Q: A bond is issued at a price of 103 and retired early at aprice of 97. Which of the following is…

A: Bond Bonds are basically a debt instrument which consist of a promise to pay back the money with…

Q: Neu Inc. issues $5 million face amount convertible bonds; the bonds issue at 101. Similar bonds…

A: The bonds are generally issued to fund long-term financial needs because these are repaid over one…

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

A: Bonds payable have a face value of $124000 which is shown in the statements. $6000 will be shown as…

Q: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: A $2,600 credit balance in the Premium on Bonds Payable account represents which of the following?…

A: A premium on bonds payable shows the excess value of cash received and the face value of bonds. It…

Q: Enumerate the following; 32. Provides for recognition of an equal amount of premium or discount…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record…

A: When bonds are issued at discount then we will debit "Discount on bonds payable" account is debited.…

Q: In each separate situation, show how bonds payable is reported in the long-term liabilities section…

A: Bonds payable is a long term liability which owned by a company, firm or individual for a long time…

Q: A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to…

A: Face value of the bond = $200,000 Carrying value of the bond = $194,000 Hence, unamortized bond…

Q: 1. Which of the following statements regarding bonds payable is true? a.The entire principal amount…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: A $920,000 bond issue on which there is an unamortized premium of $65,000 is redeemed for $821,000.…

A: Calculate the carrying amount of bonds payable:

Question

Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?

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

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

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

A $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.
A $545,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $472,000. Journalize the redemption of the bonds.If an amount box does not require an entry, leave it blank.
The following are two independent situations. 1. 2. Crane plc. redeemed £121,000 face value, 10% bonds on June 30, 2020, at 102. The carrying value of the bonds at the redemption date was £108,500. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. For each independent situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. Tastove Inc. redeemed £155,000 face value, 11% bonds on June 30, 2020, at 96. The carrying value of the bonds at the redemption date was £157,650. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. No. Account Titles and Explanation 2. Debit Credit NAR
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
(a) Prepare the journal entry to issue $500,000 bonds that sold for $470,000. (b) Prepare the journal entry to issue $500,000 bonds that sold for $518,000.
Help me
A company issued $93,000 bonds at 108. If the total interest payments during the term of the bond adds up to $70,000, then the interest expense over the bond's term will be: Type your numeric answer and submit 85560 Correct Answer: v 62560.0
Visno
What is the journal entry for the redemption of the bond? A Loss on bond redemption $4K B Gain on bond redemption $4K C Loss on Bond Redemption $2K
A $535,000 bond issue on which there is an unamortized discount of $43,000 is redeemed for $467,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
A $319,000 bond was redeemed at 104 when the carrying value of the bond was $344,000. The entry to record the redemption would include a a.loss on bond redemption of $12,240. b.gain on bond redemption of $25,000. c.loss on bond redemption of $25,000. d.gain on bond redemption of $12,240.
Eli Inc. issued $110,000 of 9% annual, 5-year bonds for $112,900. What is the total amount of interest expense over the life of the bonds? $ ______________