FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If $1,140,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is
a.$1,140,000
b.$855,000
c.$1,276,800
d.$1,171,350
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- Eddie Industries issues $926,000 of 8% bonds at 102. The amount of cash received from the sale is a.$926,000 b.$1,000,080 c.$898,220 d.$944,520arrow_forwardIf $510,000 of 8% bonds are issued at 94, the amount of cash received from the sale is a.$479,400 b.$510,000 c.$469,200 d.$550,800arrow_forwardPlease show your work.arrow_forward
- If $307,000 of 7% bonds are issued at 94, the amount of cash received from the sale is Oa. $307,000 Ob. $285,510 O c. $288,580 Od. $328,490arrow_forwardIf $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is a. $2,100,000 b. $1,940,000 c. $2,060,000 d. $2,000,000arrow_forwardA $10,000 bond quoted at 106 would sell for: A. $10,106. B. $106. C. $10,000. D. $10,600.arrow_forward
- MegaHoldings Group, a significant conglomerate, and MiniFirm Ltd, its subsidiary, are involved in a financial transaction. Initially, on January 1, 2021, MegaHoldings Group issued bonds into the financial market. Two years later, on January 1, 2023, MiniFirm Ltd bought these bonds from the market entirely. The financial specifics for this transaction have been updated as follows: Bonds Nominal (Face) Value of the bonds: $1,000,000 Coupon Rate: 6% Initial Bond Release by MegaHoldings Group. Issuance Price: $807,470 Market Rate: 9% Bond Acquisition by MiniFirm Ltd. Acquisition Price: $1,064,632 Market Rate at Acquisition: 5% Please select the right consolidation entry [B] Multiple Choice Bonds Payable (B/P) 1,000,000 Interest Revenue 53.232 Loss on Retirement of Bonds 230,678 Discounts on Bonds Payable (B/P) 150,990 Investment in Bonds 1,057,864 Interest Expense 75,056arrow_forward36arrow_forwardCompute the cash proceeds from bond issues under the following terms. Pear, Inc issued $171,000 of 10-year, 8 percent bonds at 103 Apple, Inc issued $71,000 of 5-year, 12 percent bonds at 98 Cherry Co. issued $153,000 of 5-year, 6 percent bonds at 101 ¼ Grape, Inc issued $61,000 of 4-year, 8 percent bonds at 98arrow_forward
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