Suzy Company issued $1,000,000 of 3-year, 10% bonds on January 1, 2023. The bonds pay interest semi-annually on July 1 and January1. If the bonds are issued at 103, the carrying value of the bonds after the first semi-annual interest payment at July 1, 2023 will beO a. $970,000.O b. $975,000OC $1,025,000O d. $1,030,000

1.Initial measurement of financial instruments : Under IFRS 9, all financial instruments are…

Answered: izy Company issued $1,000,000 of…

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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On March 1, 2021, JebaMac Company issued 6% term bonds with a face amount of P1,000,000 due March 1, 2025. Interest is payable semiannually on September 1 and March 1. On the date of issue, the effective interest rate is 7%. Round off PV factors to 4 decimals. What is the carrying amount of the bonds as of calendar year ending December 31, 2022?
On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest is payable annually every December 31 of each year starting December 31, 2021. The effective rate of interest on January 1, 2021 is 18%. PV of P1 @ 18% for 3 period................ 0.6086 PV of an ordinary annuity of P1@ 18% for 3 periods... 2.1743 At what amount shall the bonds be initially recognized of January 1, 2021? O P2,044,896 O P3,000,000 P2,483,088 O P2,608,548
Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 12/31/2021 950,000 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice 5% 12%. Interest Expense $1,009,243 1,012,797 1,016,565 1,020,559 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10%. Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879
Current Attempt in Progress On July 1, 2023, Ivanhoe Inc. issued $330000, 9% bonds, which mature on July 1, 2030. The bonds were issued for $313934 to yield 10%. Ivanhoe uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2025, the adjusted balance in the Bonds Payable account should be O $315627. O $330000. $330427. $317490.
On January 1, 2021, Jackie Company issued 10,000 P5,000 10% four-year bonds at an effective interest rate of 12%. The interest is payable every July 1 and December 31. On June 30, 2023, 6,000 of the bonds were retired at 98. How much is the interest expense for 2021?How much is the discount amortization during 2022?How much is the net effect of the bonds on the 2023 Statement of Comprehensive Income? [Indicate whether it is a gain or loss]How much is the interest expense for 2024?
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p19
p29
Solar Energy Inc. issued a $910,000, 10.0%, five-year bond on October 1, 2023. Interest is paid annually each October 1. Solar’s year-end is December 31. Period Ending CashInterestPaid PeriodInterestExpense DiscountAmort. UnamortizedDiscount CarryingValue Oct. 1/23 $ 33,633 $ 876,367 Oct. 1/24 $ 91,000 $ 96,400 $ 5,400 28,232 881,768 Oct. 1/25 91,000 96,994 5,994 22,238 887,762 Oct. 1/26 91,000 97,654 6,654 15,584 894,416 Oct. 1/27 91,000 98,386 7,386 8,198 901,802 Oct. 1/28 91,000 99,198 8,198 0 910,000 $ 455,000 $ 488,633 $ 33,633 Assume that interest has already been paid on October 1, 2026.Required:Using the amortization schedule provided above, record the entry to retire the bonds on…
Subject: acounting
QUESTION INFORMATION: Prior to 2022, a company issued bonds with a face value of $200,000, a stated rate of 10%, and a market rate of 12%. Interest is paid on December 31 of each year. As of December 31, 2022, the bonds had a carrying amount of $180,000. One year later, following the December 31, 2023 annual interest payment, the company called the bonds for 101% of face value. QUESTION TO ANSWER: The loss that the company records on the early extinguishment of the bonds is $_
Pearl Company sells 9% bonds having a maturity value of $1,610,000 for $1,435,895. The bonds are dated January 1, 2020, and mature January 1, 2025. Interest is payable annually on January 1. Set up a schedule of interest expense and discount amortization under the straight-line method. (Round answers to 0 decimal places, e.g. 38,548.) Year Jan. 1, 2020 Jan. 1, 2021 Jan. 1, 2022 Jan. 1, 2023 Jan. 1, 2024 Jan. 1, 2025 LA Cash Paid INI $ LA Schedule of Discount Amortization Straight-Line Method Interest Expense LLLLLL $ Discount Amortized Carryi Amount of

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