Question 2 Bonds may be redeemed (retired) before maturity by the issuing corporation. Explain why a...
Question 2 Bonds may be redeemed (retired) before maturity by the issuing corporation. Explain why a company would decide to retire bonds before maturity and the necessary steps to record the redemption.
Four companies are redeeming bonds before the maturity date. Each company had bonds with the following characteristics: Face value of $300,000 Unamortized premium on bonds payable of $1,500 Which company would record the greatest loss on bond redemption? A : Company 4, which redeemed bonds at 99 B : Company 1, which redeemed bonds at 97 C : Company 2, which redeemed bonds at 102 D : Company 3, which redeemed bonds at 105
On January 1, 2017, Marin Corporation redeemed $400,000 of bonds at 96. At the time of redemption, the unamortized premium was $12,000. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0...
The following are independent situations. 1. Concord Corporation redeemed $135,300 face value, 12% bonds on June 30, 2020, at 109. The carrying value of the bonds at the redemption date was $120,300. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded. 2. Ivanhoe Company redeemed $147,000 face value, 15% bonds on June 30, 2020, at 93. The carrying value of the bonds at the redemption date was $149,000. The bonds...
Brief Exercise 14-09 On January 1, 2020, Cullumber Corporation redeemed $450,000 of bonds at 97. At the time of redemption, the unamortized premium was $13,500. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final...
Brief Exercise 14-09 On January 1, 2020, Cullumber Corporation redeemed $450,000 of bonds at 97. At the time of redemption, the unamortized premium was $13,500. Prepare the corporation's journal entry to record the reacquisition of the bonds. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final...
What are the two obligations incurred by a corporation when issuing bonds and why do bonds sell at a discount or premium? Please explain in paragraph or two
QUESTION 1 Bonds Payable has a balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing corporation redeems t bonds at 97.5, what is the amount of gain or loss on redemption? a $25,000 loss b. $ 10,000 loss .$25,000 gain Od.$15,000 gain QUESTION 2 Basil Corporation issues for cash $1,000,000 of 8%, 10-year bonds, interest payable annually, at a time when the miarket rate ofinterest is 7% The straight-line method is adopted for...
1 QUESTION 2 Term bonds are O bonds that have a single maturity date. bonds secured by specific assets of the issuing corporation. issued only by the federal government. issued on the general credit of the corporation and do not pledge certain assets as collateral.
Exercise 15-10 a-b (Part Level Submission) Pharoah Company borrowed $316,000 on January 1, 2020, by issuing a $316,000, 10% mortgage note payable. The terms call for annual installment payments of $57,000 on December 31. (a) Prepare the journal entries to record the mortgage loan and the first two installment payments. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit...