Answer : TRUE
Bonds Ca issue at Par, Discount or Premium . Bond Carrying Value in Balance sheet will be Shown as
If bond Has Unamortized Discount
Carrying Value = bond Face Value - Unamortized discount
It the Bond Has Unamortized Premium
Carrying Value = Bonds Face Value + Unamortized Premium
The carrying value of a bond is computed as the face value minus any unamortized discount...
Assuming that a bond is originally issued at a discount, the carrying value of the bond liability will decrease over the life of the bond. This statement is True or False
1. Assuming that a bond is originally issued at a premium, the carrying value of the bond liability will decrease over the life of the bond. This statement is True or False 2.On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the...
Diaz Company issued $84,000 face value of bonds on January 1, 2018. The bonds had a 8 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 98. The straight-line method is used for amortization. Required Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense,...
18( true or false) Caylng value on the balance sheet. C The unamortized Discount on Bonds Payable account is a contra - liability account. 18. The balance in Premium on Bonds Payable should be reported as a deduction from Pavable on the balance choot. 19.
e carrying value of bonds at maturity always equals. Multiple Choice O the amount in excess of par value. O the amount of cash originally received in exchange for the bonds. O the amount of discount or premium O the amount of cash originally received in exchange for the bonds plus any unamortized discount or less any premium. O the par value of the bond. < Prev 1 of 2 Next > Multiple Choice o The contract rate is above...
Bond Amortization = Bond Discount or Premium / Number of Interest Periods Interest Paid = Face Amount of Bonds x Stated Interest Rate Interest Expense = Interest Paid + Discount ( or – Premium) Amortization On October 1, 2018 ABC issued 5%, 10-year bonds with a face value of $4,000,000 at 104. Interest is paid on October 1 and April 1, with any premiums or discounts amortized on a straight-line basis. What is interest expense for 2018? Assume ABC Company...
Diaz Company issued $122,000 face value of bonds on January 1, 2018. The bonds had a 5 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 99. The straight-line method is used for authorization. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018. Determine the amount of interest expense reported on the 2018 income...
Determine whether a bond will sell at Face Value, Premium or Discount. Bond Contractual RateMarket Interest RateBond Sells at: a. 15%20% b. 15%12% c. 15%15%
On January 1, 2017, Bobcat Company sold 12% bonds having a face value of $300,000 to yield 10% market rate. The bonds are dated January 1, 2017 and mature January 1, 2022 (5 year term), with interest payable quarterly (April 1, July 1, October 1, and January 1) each year. Instructions Prepare complete bond amortization schedules for Bobcat using the Excel templates on the following tabs. Tab 1: Assume Bobcat allocates interest and unamortized discount or premium on the EFFECTIVE-INTEREST...
Any regular coupon bond of any maturity will sell for its face value if the coupon rate is the same as yield of Maturity. True or False