FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If $949,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is
a.$1,024,920
b.$711,750
c.$949,000
d.$975,098
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- 8. A bond issued with a par value of $200,000 and a carrying amount of $195,500 is retired at 98.5. The gain or loss on this transaction is: discont = 4500 Bond Payabl 200000 A) $3,000 loss. B) $3,000 gain. C) $1,500 loss. D) $1,500 gain. discout Debit 4500 199901.5arrow_forwardIf $571,000 of 9% bonds are issued at 98, the amount of cash received from the sale is a.$519,610 b.$571,000 c.$559,580 d.$622,390arrow_forward#7 ABC Company purchased bonds with a face amount of $1200000 between interest payment dates. ABC purchased the bonds at 102, paid brokerage costs of $15800, and paid accrued interest for three months of $25800. The amount to record as the cost of this long-term investment in bonds is $1239800. $1200000. $1224000. $1265600.arrow_forward
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