Sold $44,000 of the bonds at 103 plus accrued interest of $500. Cash 100

Q: If $945,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is 4 Oa.…

A: The bonds' face value is $100 per bond. Bonds are issued at a premium of $2.75 at a total issue…

Q: ddie Industries issues $950,000 of 8% bonds at 103. The amount of cash received from the sale is…

A: In the given question, Bonds having face value of $ 950,000 are issued at 103. It implies that…

Q: r. 1 Purchased $100,000 of Welch Co. 6%, 15-year bonds at their face amount plus accrued interest of…

A: The question is based on the concept of Financial Accounting.

Q: Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the…

A: When bonds are issued at premium  the difference  between  face value and issue proceeds  is…

Q: If $906,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is Oa.…

A: If a bond is issued at 102 ¾ it means that the bond has been issued at 102.75% of face value. Amount…

Q: A company purchased $30,000 of 5% bonds for investment purposes on May 1. The bonds pay interest on…

A: The interest revenue accrued shall be recorded for the months for which interest has been earned but…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: (a) Prepare the journal entry to issue $500,000 bonds that sold for $470,000.

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Sandhill Corporation had the following transactions relating to debt investments: Jan. 1, 2022…

A: Investment in bonds is considered as a long term investment but the interest accrued on them is…

Q: If $522,000 of 8% bonds are issued at 94, the amount of cash received from the sale is:

A: Bonds price is indicated as a percentage of par value and par value is assumed at 100. So price…

Q: Purchased for cash $200,000 of Jakob, Inc. 9% bonds at 100 plus accrued interest of $3,000. DATE…

A: 1. When bonds are purchased, then it may happen that bonds purchase date and interest due date are…

Q: Apr. 1 Purchased for cash $338,000 of Vasquez City 3% bonds at 100 plus accrued interest of $2,535.…

A: When a company's bond is purchased as an investment, it carries a fixed rate of interest. At the…

Q: Purchased for cash $130,000 of Jackson, Inc. 10% bonds at 100 plus accrued interest of $3,000. DATE…

A: The conditions are given as, a)Purchased for $130,000, Inc. 10% bonds at 100 with accrued interest…

Q: Kern Company purchased bonds with a face amount of €400,000. Kern purchased the bonds at 397,000 and…

A: Answer Cost of Investment  include cost of Investment plus transaction cost like brokerage,…

Q: If $1,093,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is

A: Given that  $1093000 of 8% Bonds issued at 102 3/4

Q: On April 1, 2011, Gina Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value…

A: Net cash received from bonds issue = Issue price of the bonds + Accrued interest on the bonds where,…

Q: On April 1, 2011, ABC Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value…

A: Net cash received from bonds issue = Issue price of the bonds + Accrued interest on the bonds where,…

Q: If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount…

A: Solution: Cash paid for bond interest = Bond interest expense - Increase in bond payable - Decrease…

Q: Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at…

A: Total cash paid for investment = Bonds + Accrued interest = $400,000 + $4,500 = $404,500

Q: Foren Corporation had the following transactions pertaining to debt investments. Jan 1: Purchased 50…

A: Bonds are the form of investments or loans given by the company. Interest is received or paid on…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $60,400,000 of…

A: Journal entries are prepared to record the financial and non-financial transactions of the business…

Q: Crane Corporation issued 3,200, 6%, 5-year, $ 1,000 bonds dated January 1, 2022, at 100. Interest is…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000.…

A:

Q: Accounting Sold May Corporation bond purchase for cash of $5,100. The May Corporation Bonds were:…

A: journal entry with proper explanation are as follows

Q: Superior drive ins Ltd borrowed money by issuing $5500,000 of 6% bonds payable at 93.5 on July…

A: solution : given : face value of bond       =$5500,000 coupon rate                   =6% issue price…

Q: If $4,000,000 of 12% bonds are issued at 103 1/4, the amount of cash received from the sale is:

A: Number of bonds=Par value of bondsPer share value=$4,000,000$100=40,000

Q: Eddie Industries issues $834,000 of 8% bonds at 105, The amount of cash received from the sale is a.…

A:

Q: Accounting on 7/2/Y1 Loch Ness, Inc. purchased 50 of the $1,000 face bonds issued by EBerry Corp.…

A: Investment- Investment is defined as the purchase of an asset in order to generate income or capital…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $14,000,000 of…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: Purchased $84,000, 10 year, 7% government bonds at 95. Brokerage commission was $250.The semi-annual…

A: Prepare journal entry for issuance of bonds payable.

Q: On July 1, 2002, Roger Co. paid P1,198,000 for 10% 20-year bonds with a face amount of P1,000,000.…

A: Interest expense in 2002 = Carrying amount of the note on initial recognition x interest rate x no.…

Q: Sold P480,000 of ABC Corporation 7% bonds at 102, plus accrued interest of P2,790.00.

A: The current portion of the investments means the amount of investment remaining after adjusting the…

Q: If $381,000 of 9% bonds are issued at 97, the amount of cash received from the sale is a.$381,000…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: If $1,000,000 of 8% bonds are issued at 102.5, the amount of cash received from the sale is

A: Cash Received from the sale of Bond : The total cash received from the sale of bond to the company…

Q: Starks products uses the cost method to account for investments in bonds. They purchased cash…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the…

A: The par value of Bonds is $1000. But the bonds are issued at a 5% premium. Therefore, Par value of…

Q: Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: P1,032,880 for P1,000,000 face amount, 12% bonds, a orice that vields 10%

A: Solution: Premium amortized at Dec 31, 2019 = cash paid for interest - interest expense =…

Q: Eddie Industries issues $926,000 of 8% bonds at 102. The amount of cash received from the sale is…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds.* 2.…

A: Under the effective interest rate method, Bond premium is amortized over the bond term under the…

Q: Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with interest payable…

A: From July 1 to December 31 = 6 months Interest expense has been accrued for 6 months in the month of…

Q: O Prepare the journal entry to issue $500,000 bonds that sold for $470,000. O Prepare the journal…

A: Bonds are debt instruments where the holder of the bond is the creditor and the issuer of the bond…

Q: Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual…

A: Correct answer is d Interest payment on bond is recorded as follows.  Interest expenses Dr.  Cash…

Q: Surmount Inc. Sold bonds with a $50,000 face value, 12% interest and 10-year term at $48,000. What…

A: Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at…

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: