On January 1, 20x1, ELABORATE COMPLICATED Co. issued 3-year, 10%, P4,000,000 convertible bonds for P4,400,000. Principal is due at maturity but interest is payable every year-end. The bonds are convertible into 6,000 ordinary shares with par value of P400. At issuance date, the prevailing market rate of interest for similar debt without conversion feature is 12%. On December 31, 20x2, all the convertible bonds were retired for P4,000,000. The prevailing rate of interest on a similar debt instrument as of December 31, 20x2 is 11% without the conversion feature. How much is gain (loss) on the extinguishment of the bonds on December 31, 20x2?

Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1,balance sheet: $1,000,000, 7%, 10-year bonds that pay interest semiannually. The bonds have been outstanding for five years and were originally issued at face amount. The company is considering redeeming these bonds on January 1, 20Y2, at 103 and issuing new $1,000,000, 5%, five-year bonds at their face amount. These bonds would pay interest semiannually on June 30 and December 31. Write a brief memo to Liz Nolan, the chief financial officer, discussing the costs of redeeming the existing bonds, the proceeds from issuing the new bonds, and whether this is a good financial decision.

On February 1, 20x1, Broncos Company issued 9.75% bonds with a face amount of $20 million. The bonds mature in 5 years. For bonds of similar risk and maturity, the market yield is 11.5%. Interest is paid semiannually on July 31 and January 31. Broncos is a calendar-year corporation. 1) Determine the price of the bonds on February 1, 20x1 using the Excel. 2) Prepare the journal entry to record the bond issuance on February 1, 20x1. 3) Prepare an amortization table for 5 years using the effective interest method. 4) Prepare the journal entries (using the effective interest method) on July 31, 20x1 (1st payment). 5) Prepare the journal entry (using the effective interest method) on December 31, 20x1 (adjusting entry, no cash payment!) 6) What would be the journal entry if all bonds are retired at 102.5 on August 1, 20x2 right after the third payment. Prepare the journal entry for the bond retirement.

Federal Semiconductors issued 8% bonds, dated January 1, with a face amount of $740 million on January 1, 2024.   The bonds sold for $671,914,968 and mature on December 31, 2043 (20 years).   For bonds of similar risk and maturity the market yield was 9%.   Interest is paid semiannually on June 30 and December 31.   1- Prepare the journal entries to record their issuance by Federal on January 1, 2024   2- At what amount will Federal report the bonds among its liabilities in the December 31, 2024, balance sheet?

On January 1, Elias Corporation issued 7% bonds with a face value of $78,000. The bonds are sold for $75,660. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elías records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is Oa. $455 Ob. $5,694 Oc. $5,460 Od. $2,340

On June 30, 2024, Blair Industries had outstanding $94 million of 7% convertible bonds that mature on June 30, 2025. Interest is payable each year on June 30 and December 31. The bonds are convertible into 8 million shares of $10 par common stock. On June 30, 2024, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2024, half the bonds were converted when Blair's common stock had a market price of $38 per share. When recording the conversion, Blair should credit paid-in capital-excess of par: Multiple Choice $7 million. $9 million. $5 million. $3 million.

On January 1, 2022, P Corp. issued eight-year, 3% bonds with a face value of $400,000, with interest payable semi- annually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Present value of 1 for 8 periods at 3% .789 Present value of 1 for 8 periods at 4% 731 Present value of 1 for 16 periods at 1.5% 788 Present value of 1 for 16 periods at 2% .728 Present value of annuity for 8 periods at 3% Present value of annuity for 8 periods at 2% 7.020 7.325 Present value of annuity for 16 periods at 1.5% 14.131 Present value of annuity for 16 periods at 2% 13.578 What is the issue price of the bond?

On January 1, 20X5, Seymond Corporation issued $100,000 in 10-year, zero-coupon bonds. The interest rate is 5% and Seymond uses the effective interest rate method."A. Record the issuance of the bonds. B. Record the interest accrual on December 31, 20X5. C. Record the interest accrual on December 31, 20X6. "

On January 1, Elias Corporation issued 10% bonds with a face value of $100,000. The bonds are sold for $97,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $10,000 b. $3,000 C. $833 d. $10,300

The Wilfred Company sold 8% bonds, dated January 1, with a face amount of $90 million on January 1, year 1 to Rexton-Base Corporation. The bonds mature on December 31, year 10 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record interest revenue on June 30, year 1 (at the effective rate).