Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for $493,000 plus accrued interest. Interest is paid on January 1 and July 1 and straight-line amortization is used. The net liability for the bonds after recording the sale would be a. $508,000 b. $507,700 c. $500,000 d. $493,000

A. On July 1, 2026, ABC purchased 5,000 of the P1,000 face amount, 8% bonds to yield 10% per annum. The bonds, which mature on July 1, 2031, pay interest semiannually on January 1 and July 1. The interest method of amortization is used. What is the carrying amount of the bond investment on December 31, 2026.   B. ABC purchased 8,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of the bonds on January 1, 2026 was P7,800,000. The bonds mature on June 20, 2029 and pay interest semiannually on June 30 and December 31. The entity sold 4,000 bonds on March 1, 2027 for P3,920,000 after the interest has been received. What is the amount should be recognized as gain on sale of bonds?   C. On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are dated January 1, 2026, 2024, mature on December 31, 2035 and pay interest annually on December 31. The entity used the interest method. What should be reported as interest revenue for 2026?

Blossom Electric sold $3,800,000, 8%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay interest annually on January 1. Blossom Electric uses the straight-line method to amortize bond premium or discount. The bonds were sold at 103. (a)

Krause Corporation issued $2,300,000, 10-year, 6% bonds for $2,231,000 on January 1, 2022. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2022, would be OA. $138,000. OB. $69,000. OC. $6,900. OD. $3,450.

On June 30, 2021, Waterway Industries had outstanding 8%, $8020000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 2021 was $361000. On June 30, 2021, Waterway acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?     $7538800. $7659000. $7939000. $7739200.

12. On July 1, 2012, Madison Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price that yields 10%. Using the interest method of amortization, how much is the interest expense for the six months ended December 31, 2012? * a. P61,973 b. P60,000 c. P51,644 d. P50,000 13. Use the same information given in the preceding problem. What is the bond carrying value at December 31, 2012? * a. P1,024,524 b. P1,031,236 c. P1,032,880 O d. P1,041,236

On January 1, 2020, Sheridan Company sold 9% bonds with a face value of $2100000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2274700 to yield 7%. Using the effective-interest method of amortization, interest expense for 2020 is $158709. $189000. $159179. $147000.

A company purchased $100,000 of 5%, 2-year bonds on July 1, 2024. The bonds were purchased at face amount. What is the amount of interest revenue as of December 31, 2024? Multiple Choice A.$2,500 B.$5,000 C.$10,000 D.None of these answer choices are correct.

Warren Company issued $850,000 of 6%, 5-year bonds dated on January 1, 2020, for $890,800. Interest is paid semi-annually. What is the total amount of interest expense for the bonds for the year 2020, assuming straight-line amortization? Multiple Choice о O $59,160 $51,000 $50,660 $42.840

Presented below are two independent situations. (a) Oriole Co. sold $1,840,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated January 1, 2020, and pay interest on July 1 and January 1. If Oriole uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020. (Round answer to O decimal places, e.g. 38,548.) Interest expense to be recorded $ (b) Waterway Inc. issued $540,000 of 9%, 10-year bonds on June 30, 2020, for $447,091. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Waterway uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $