RequiredCompute the cash proceeds from bond issues under the following terms. For each case, indicate whether the bonds sold at apremium or discount. (Round your answers to nearest dollar amount.)CashDiscount orProceedsPremiumа.Pear, Inc. issued $168,000 of 10-year, 8 percent bonds at 102.b.Apple, Inc. issued $139,000 of five-year, 12 percent bonds at 97.С.Cherry Co. issued $159,000 of five-year, 6 percent bonds at 102 1/4.d.Grape, Inc. issued $70,000 of four-year, 8 percent bonds at 98.00.

Solution: Computation of cash proceeds from bond and same is issued on discount or premium is as…

Answered: Compute the cash proceeds from bond…

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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Determine the interest payment for the following three bonds. (Assume a $1,000 par value.) (Round your answers to 2 decimal places.) 1. 3 % percent coupon corporate bond (paid semiannually): 2. 4.25 percent coupon Treasury note (paid semiannually):
Please answer all the subparts and please don't give image based answer..thanku
The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable.
Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.
Do not answer in image format. Maintain accuracy and quality in your answer. Answer completely.
BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $80,000,000 of five-year, 9% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ d. The amount of the bond interest expense for the first…
What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…
5 0 V File C13 123456 7 89 Home 18 19 20 Insert Arial X ✓ fx Face amount of bonds Contract rate of interest Draw Term of bonds, years Market rate of interest Interest payment Page Layout く 10 Formulas DATA B ✓ ✓ V Data A B C Compute bond proceeds, amortizing discount by interest method, and interest expense Av $80,000,000 9% 5 11% Semiannual Review Amount ... View Ev ab ≡く D Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2 10 for gradina. 11 12 13 a. PV of cash proceeds 14 b. Discount amortized for the 1st interest payment period 15 c. Discount amortized for the 2nd interest payment period 16 d. Interest expense for the 1st year 17 Help Formulas Editing ✓ Currency E $ 500 ✓ C →>>
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.
Accounting Bonds Payable has a balance of $957,000 and Discount on Bonds Payable has a balance of $9,570. If the issuing corporation redeems the bonds at 97.5, what is the amount of gain or loss on redemption? a. $14,355 loss b. $9,570 gain c. $14,355 gain d. $9,570 loss
How do you solve portion B and C. I don't understand the calcuations.

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