Suppose serials bonds with face value of P1,000,000 scheduled to be retired on December 31, 2024 are retired at 104 on December 31, 2022, two years prior to their redemption date, what amount should Elizabeta report in its 2022 income statement as gain (loss) on early extinguishment of debt?

Hh3.

Requ a. Using the present value tables in Chapter 6, calculate the proceeds (issue price) of Learned, Inc.'s, bonds on January 1, 2013, assuming that the bonds were sold to provide a market rate of return to the investor. b. Assume instead that the proceeds were $93,000,000. Use the horizontal model (or write the journal entry) to record the payment of semiannual interest and the related premium amortization on June 30, 2013, assuming that the premium of $3,000,000 is amortized on a straight-line basis. o 0ompound interest method

H1.

On December 31, 2021, Danny purchased $23,000 of newly issued bonds of Howard Corporation for $19,045. The bonds are dated December 31, 2021. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirement. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Year Interest Received December 31, 2021 June 30, 2022 December 31, 2022 Amortization of Original Issue Discount Taxpayers Basis Interest Income for the Bond The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Danny must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Danny must recognize as ordinary income for the first semiannual period is…

Gadubhai

3. On January 1, 2021, Joanna Reece paid $291,000 for bonds with a face amount of $311,000. The coupon rate of interest is 11%. The effective rate of interest is 14%. Using the effective interest method, how much interest income is recognized by Joanna in 2022 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)

On December 31, 2020, Phil purchased $20,000 of newly issued bonds of Texas Corporation for $16,568. The bonds are dated December 31, 2020. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirements. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Amortization of Original Issue Discount Taxpayers Basis for the Bond Year Interest Received Interest Income December 31, 2020 June 30, 2021 December 31, 2021 The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Phil must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Phil must recognize as ordinary income for the first semiannual period is Requirement…

On July 1, 2019, Montana Company has bonds with balances as shown below.                  Bonds Payable   70,000       Discount on Bonds Payable 3600         If the company retires the bonds for $71,150, what will be gain or loss on the retirement.

At the end of 2020, Majors Furniture Company failed to accrue $61,500 of Interest expense that accrued during the last five months of 2020 on bonds payable. The bonds mature in 2032. The discount on the bonds is amortized by the straight-line method. The following entry was recorded on February 1, 2021, when the semiannual Interest was pald: Interest expense Discount on bonds payable Cash Required: 1-a. Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described. (Ignore Income taxes.) 1-b. Prepare the journal entries that should have been recorded, If done correctly to start. Req 1A Complete this question by entering your answers in the tabs below. Req 18 View transaction list Prepare any journal entries necessary to correct the error, as well as any adjusting entry for 2021 related to the situation described. (Ignore income taxes.) (Do not round intermediate calculations and round your final answers to nearest…