A$600,000 bond was retired at 101 when the carrying value of the bond was $622,000 The entry to record the retirement would include a gain on bond redemption of ($ nearest dollar, eg 325-33, 324-32)
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- What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…A comapny has issued a $162, 000, 3 year, zero interest bond dated January 1, 2023. The market interest rate for similar bonds was 11%. Assume the company used the effective interest method of amortization. Prepare a schedule of bond discount/premium amortization. (Round answers to 0 decimal places, e. g. 5, 275. Do not leave any answer field blank. Enter 0 for amounts.)PB5. LO 13.3 Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
- A$560000 bond was retired at 98 when the carrying value of the bond was $550000. The entry to record the retirement would include a O gain on bond redemption of $10000. O loss on bond redemption of $10000. Q gain on bond redemption of $1200. Ở loss on bond redemption of $1200. eTextbook and Media Assistance Used Save for Later Attempts: 0 of 2 used Submit Answer SAMSUNG C-6036 96 5 6 e t f g h b n m altThe Titan retires a $24.9 million bond tssue when the carrying value of the bonds is $22.5 million, but the market value of the bonds Is $28.0 millon. The entry to record the retirement will Include: Multiple Choice No gain or loss on retirement. A debit of $55 million to a loss account A credit of S5.5 milion to a gain account A credit to cash for $225 million. Ps Ps 40% 99+ Type here to search ** *** PrISc F10 F9 F11 F12 F4 RI & 4 . 6. 7 8 T. P F K B N |組PB6. LO 13.3Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. July 1, 2018: entry to record issuing the bonds Dec. 31, 2018: entry to record payment of interest to bondholders Dec. 31, 2018: entry to record amortization of discount
- On January 1, 2025, Blue Company sold 11% bonds having Prepare a schedule of interest expense and bond amortization for 2025 - 2027. (Round answer to 2 decimal places, e.g . 38, 548.25.) Schedule of Interest Expense and Bond Premium Amortization Effective - Interest Method a maturity value of $500,000.00 for $518, 953.45, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2025, and mature January 1, 2030, with interest payable December 31 of each year. Blue Company allocates interest and unamortized discount or premium on the effective - interest basis.of 6 - 1:22:32 ook 17 rint ! Required information [The following information applies to the questions displayed below.] Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) Date 1/1/2024 6/30/2024 12/31/2024 (2) Cash Paid for Interest $1,470,000 1,470,000 Stated annual interest rate (3) Interest Expense 4. What is the stated annual interest rate? $1,378,755 1,376,473 % (4) Decrease in Carrying Value $91,245 93,527 (5) Carrying Value $55,150, 180 55,058,935 54,965,408 ↳A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to record the redemption would include a Oa. loss on bond redemption of $3,000 Ob. gain on bond redemption of $3,000 Oc. loss on bond redemption of $4,000 Od. gain on bond redemption of $4,000 7 a I' B in 20 D W 14 Previous Next ^04) O
- 4. What is the carrying value of the bonds at the end of the second period (third number)? Premium 57,913.01 Carrying value (bonds) 432,913.01 Face Rate Market Rate Semiannual payments a. b. Cash Payment C. d. e. 14% 10% 0 or 1 2 or 3 4 or 5 6 or 7 8 or 9 Interest Expense Today Period #1 26,250.00 Period #2 26,250.00 Carrying value at end of second period (third number) ___________?__ 2. Disc. or Prem. Amort. 21,645.65 21,415.43 Disc. or Prem. 4,604.35 4,834.57 57,913.01 53,308.66 48,474.10 Face Value 375,000.00 375,000.00 375,000.00 Carrying Value 432,913.01 428,308.66 423,474.10PB5. LO 13.3Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. July 1, 2018: entry to record issuing the bonds June 30, 2019: entry to record payment of interest to bondholders June 30, 2019: entry to record amortization of discount June 30, 2020: entry to record payment of interest to bondholders June 30, 2020: entry to record amortization of discountof 6 4:21:47 ook rint Required information [The following information applies to the questions displayed below.] Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) Date 1/1/2024 6/30/2024 12/31/2024 (2) Cash Paid for Interest $1,470,000 1,470,000 Market annual interest rate (3) Interest Expense $1,378,755 1,376,473 (4) Decrease in % Carrying Value $91,245 93,527 (5) Carrying Value $55,150, 180 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) 55,058,935 54,965,408 4
