If 70 $1000 bonds with a carrying value of $84000 are redeemed for $79000, the journal entry to record the transaction isBonds PayablePremium on Bonds PayableCashBonds PayableCashGain on Bond RedemptionDiscount on Bonds Payable 14000Bonds PayableCash70000Bonds Payable1400084000840007000084000790001900084000CMQMoʻ

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

Answered: If 70 $1000 bonds with a carrying value…

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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6400 bonds with a face value of $1000 each, are sold at 105. The entry to record the issuance is Cash Discount on Bonds Payable Bonds Payable Cash Premium on Bonds Payable Bonds Payable Cash Bonds Payable Cash Premium on Bonds Payable Bonds Payable 6720000 6720000 6720000 6400000 320000 320000 6400000 320000 6400000 6720000 6720000
If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer @ 3 4 5 6 7 W e у S g h j k V b n m alt ctrl
Devin Company computes the following bond interest amortization table for bonds issued on January 1, 2021. Use the information on this table to answer the questions below. Interest Cash Payment Payment Interest Decrease in Вook Date Amount Discount Value Expense $441,068 $444,310 $447,683 $451,190 $454,838 $458,631 $462,577 $466,680 $470,947 $475,385 Discount $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $360,000 $81,068 $84,310 $87,683 $91,190 $94,838 $98,631 $102,577 $106,680 $110,947 $115,385 $892,240 $807,929 $720,247 $629,056 $534,219 $435,587 $333,011 $226,331 $115,385 $0 $11,107,760 $11,192,071 $11,279,753 $11,370,944 $11,465,781 $11,564,413 $11,666,989 $11,773,669 $11,884,615 $12,000,000 June 30, 2021 Dec 31, 2021 June 30, 2022 Dec 31, 2022 June 30, 2023 Dec 31, 2023 June 30, 2024 Dec 31, 2024 June 30, 2025 Dec 31, 2025
Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the issuance is Cash 5100000 Discount on Bonds Payable 100000 Bonds Payable 5000000 Cash 5100000 Bonds Payable 5100000 Cash 5000000 Premium on Bonds Payable 100000 Bonds Payable 5100000 Cash 5100000 Premium on Bonds Payable 100000 Bonds Payable 5000000
View Policies Current Attempt in Progress If bonds with a face value of $124000 are converted into common stock when the carrying value of the bonds is $118000, the entry to record the conversion will include a debit to O Bonds Payable equal to the market price of the bonds on the date of conversion. O Bonds Payable for $124000. O Discount on Bonds Payable for $6000. O Bonds Payable for $118000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer 4 5 6 7 8 9 e C b n
Five thousand bonds with a face value of $2000 each, are sold at 112. The entry to record the issuance is Cash 11200000 Bonds Payable 11200000 Cash 11200000 Discount on Bonds Payable 1200000 Bonds Payable 10000000 Cash 11200000 Premium on Bonds Payable 1200000 Bonds Payable 10000000 Cash 10000000 Premium on Bonds Payable 1200000 Bonds Payable 11200000
A $990,000 bond issue on which there is an unamortized premium of $67,000 is redeemed for $816,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. Bonds Payable Bonds Payable Premium on Bonds Payable Premium on Bonds Payable Gain on Redemption of Bonds Gain on Redemption of Bonds Cash Cash
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Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Pricing bonds Bond prices depend on the market rate of interest, stated rate of interest and time. Requirements Compute the price of the following 8% bonds of Country Telecom. a. $100,000 issued at 75.25 $100,000 issued at 94.50 b. $100,000 issued at 103 50 c. $100,000 issued at 94.50 d. $100,000 issued at 103.25 2. Which bond will Country Telecom have to pay the most to retire at maturity? Explain your answer.
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