Kevin Inc. issues P 10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are P 9,802,072. The company uses effective-interest method in amortization. For the year-ended 2020 financial statements, what amount should be reported as interest expense, and carrying amount of the bonds payable, respectively a. P 390,000 and P 10,000,000, respectively b. P 780,000 and P 9,812,562, respectively c. P 784,248 and P 9,806,320, respectively d. P 784,166 and P 9,804,154, respectively

A company issues $25900000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $25301326. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? (Round answer to 0 decimal place, e.g. 52.) $25309264 $25900000 $25333047 $25317444

On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. A) $73,000. B) $82,000. C) $87,000. D) $89,000.

On October 1, 2020 Waterway Industries issued 6%, 10-year bonds with a face value of $8150000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis.Bond interest expense reported on the December 31, 2020 income statement of Waterway Industries would be

Waterway Industries issues 2300, 10-year, 8%, $1000 bonds dated January 1, 2020, at 98. The journal entry to record the issuance will show a O debit to Cash of $2300000. O credit to Bonds Payable for $2346000. O debit to Cash for $2254000. O credit to Discount on Bonds Payable for $46000.

A company issues $17000000, 9.8%, 20-year bonds to yield 10% on January 1, 2024. Interest is paid on June 30 and December 31. The proceeds from the bonds are $16708295.53. If the effective-interest method of amortization is used, what amount of interest expense will be recognized in 2024? $833000 $1670756 $1670951 $1666000

On January 1, 20x1, SENECTITUDE OLD AGE Co. issued its 12%, 3-year, P2,000,000 convertible bonds at 110. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on December 31, 20x3 but interests are due annually at each year-end. When the bonds were issued, they were selling at a yield to maturity market rate of 10% without the conversion option. On December 31, 20x2, half of the bonds were converted into equity. Conversion costs incurred amounted to P20,000. Requirements: a. Provide the pertinent entries. b. Net increase in equity as a result of the conversion. c. Net increase in "share premium" general account as a result of the conversion.

Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Cash Payment Interest A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Effective Decrease in Interest Balance Disct Cash 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term? Outstanding Balance 10,000,000 (6,261,343) 3,738,658 4,000,000 7,738,658 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676

Sandhill Company issued $690,000, 12%, 10-year bonds on December 31, 2021, for $620,000. Interest is payable annually on December 31. Sandhill Company uses the straight-line method to amortize bond premium or discount.

Great Lake Glassware Company issues $1,050,000 of its 16%, 10-year bonds at 94 on February 28, 2024. The bonds pay interest on February 28 and August 31. Assume that Great Lake uses the straight-line method for amortization The journal entry to record the first interest payment on August 31, 2024 includes a OA. debit to Interest Expense for $87,150. OB. debit to Cash for $84,000. OC. debit to Discount on Bonds Payable for $3,150 OD. debit to Interest Expense for $80,850