On the first day of 2021, Rooney Inc had outstanding $1,000,000 of 9% bonds with a book value of $970,500. Rooney called the bonds (retired them) at a call price of $987,000 on July 1, 2021. The bonds were issued previously at a price to yield 11% and interest payable semi-annually on July 1 and January 1. What is the amount of the loss on early extinguishment?

On January 1, 2020 Jinn Inc. issued 10-year, 10% $100,000 bonds for 105. because the market rate of interest on that date was 8%. The bonds pay interest annually on December 31st each year. One year later on January 1, 2021, Jinn Inc. retires the $100,000 bonds by repurchasing them in the market for $106,000. What is the amount of gain or loss on the retirement of the bonds? O $1,000 loss O $500 gain O $1.000 gain O $2,600 loss O $2,600 gain

On February 1, 2022, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is payable semiannually on January 31 and July 31 with the bonds maturing on February 1, 2032 (10-year bonds).  The bonds are callable at 102.  On February 1, 2022, Mojito retired $750,000 of the bonds at the call price.   Required:   Prepare the journal entry for the issuance of the bonds Prepare any required journal entries for interest payments on July 31, 2022 and January 31, 2023. Mojito uses straight-line amortization to amortize any discount or premium. Prepare the required entry to record the retirement of the bonds on February 1, 2023.

On January 1, 2021, Oak Ridge Ltd. purchased $185,000 of 11%, 10-year bonds at face value (100) with the intention of selling the bonds early the next year. Interest is received semi-annually on July 1 and January 1. At December 31, 2021, which is the company's fiscal year end, the bonds were trading in the market at 99 (this means 99% of maturity value). Using the fair value through profit or loss model, prepare the journal entry to record the purchase of the bonds on January 1. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Jan. 1 eTextbook and Media List of Accounts Date Account Titles and Explanation Prepare the journal entry to record the receipt of the interest on July 1. (List all debit entries before credit entries. Credit account titles are…

On January 1, 2020, Vaughn Corporation issued $5,480,000 of 10% bonds at 101 due December 31, 2029. Vaughn paid $75,000 in bond issue costs when the bonds were issue to the market. These will be amortized over the life of the bond. The premium on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "interest method".) The bonds are callable at 105 (i.e., at 105% of face amount), and on January 2, 2025, Vaughn called one-half of the bonds and retired them. Ignoring income taxes, compute the amount of loss, if any, to be recognized by Vaughn as a result of retiring the $2,740,000 of bonds in 2025. Loss on redemption $ Prepare the journal entry to record the retirement. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before…

Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid semiannually on June 30 and December 31. The bonds had a 10-year life from the date of issue, and the company uses the straight-line method of amortization. On April 30, 2021, Balboa recalls the bonds at the call price of 105 plus accrued interest. Journal entries for 2021 would include:

Naval Inc. Issued $20,000,000 face value bonds at a premium and recieved $21,450,000. At the end of 2019, the balance in the Premium on Bonds Payable account is $556,000. This year's balance sheet will show a net liability of

Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98.   At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period                                                                        select an opening section name                                                                                    enter a balance sheet item     $enter a dollar amount        select between addition and deduction                                                                       : enter a balance sheet item      enter a dollar amount   $enter a subtotal of the two previous amounts

On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of $965,500. The indenture specified a call price of $982,000. The bonds were issued previously at a price to yield 11% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment?

On January 1, 2021, the company issued $1,800,000, 6% bonds with a 10-year maturity. The bonds were issued to investors that require an effective interest rate of 9%.  The accountant did NOT record the issuance of these bonds.  Interest is paid annually and the accountant did NOT record the interest payment transaction.  The effective interest method is used to amortize any premium or discount.  NOTE – round calculations to nearest dollar. In the Excel spreadsheet, see the tab labelled “Bonds Payable – Series 2” to make any calculations, including an amortization schedule, to support journal entries.