If $100,000 (Face Value) in bonds are issued at 102, then the bonds were issued at:...

Question

Question

Answer 1

Answer #1

answer: b. A premium of $2000

Assuming face value per bond = $100

Number of bonds issued = $100,000/100 = 1000 bonds

Given that the issue price = $102

So there is a premium of $2 per bond ( i.e, 102 - 100)

Now the total value of premium = 1000 bonds * $2

= $2000

Answer 2

Similar Homework Help Questions

If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a...

If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a a. premium of $2,000. discount of $2,000, C. gain of $2,000. d. loss of $2,000
If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a...

If $100,000 (face value) in bonds are issued at 98, then the bonds were issued a a. premium of $2,000. discount of $2,000, C. gain of $2,000. d. loss of $2,000
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...

EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...

Question 2: Chupack Ltd. has issued bonds with a face value of $2,200,000. The bonds were...

Question 2: Chupack Ltd. has issued bonds with a face value of $2,200,000. The bonds were issued on Jan 1st, 2015. The company got $2,403,407 in cash for the bonds. The bonds carry 10% annual coupon rate with interest payable at the end of the year, and maturity of 6 years. Investors demand 8% annual yield for similar risk bonds. Required: a. Were the bonds issued in a discount or premium? Explain why. b. Show Interest expense, Discount/premium amortization, Discount/premium...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...

EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par?
Philosophy Insights Corporation retires its $500,000 face-value bonds at 102 on January 1, after interest is...

Philosophy Insights Corporation retires its $500,000 face-value bonds at 102 on January 1, after interest is paid. The bonds’ carrying value at the date of retirement is $481,250. What should the entry to record the redemption include? $10,000 debit to premium on bonds payable $18,750 credit to discount on bonds payable $18,750 credit to loss on bond redemption $28,750 debit to gain on bond redemption

QUESTION 4 "Bonita Industries retires its 5400000 face value bonds at 102 on January 1, following...

QUESTION 4 "Bonita Industries retires its 5400000 face value bonds at 102 on January 1, following the payment of interest. The carrying value of the bonds at the redemption date is $385000. The entry to record the redemption will include a debit of 58000 to Premium on Bonds Payable. credit of $15000 to Loss on Bond Redemption credit of $15000 to Discount on Bonds Payable. debit of $23000 to Gain on Bond Redemption,
Q.6 Three year bonds are issued at face value of SR 100,000 on Jan. 1, 2007,...

Q.6 Three year bonds are issued at face value of SR 100,000 on Jan. 1, 2007, and a stated interest rate of 8%. Calculate the issue price of the bonds assuming a market interest rate of 6%. The present value of SR 1 is .83962 at 6% after 3 years and the present value of an ordinary annuity of SR 1 is 2.67301 at 6% after 3 years. Q.7. Three year 8% bonds of SR 100,000 issued on Jan. 1,...
On the day the bonds were dated, Willow Corp. issued 12% bonds having a face value...

On the day the bonds were dated, Willow Corp. issued 12% bonds having a face value of $100,000 for $95,233 On the day the bonds were dated, Willow Corp. issued 12% bonds having a face value of $100,000 for $95,233. a. What entry is required to record the sale of the bonds? b. What amount of interest would be paid to bondholders annually?! c. What amount of interest would be paid to bondholders semi-annually?

A. On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The...

A. On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7%.Based on this information the carrying value of the bond liability on January 1, Year 1 is $52,000. $50,000. $48,000. $46,500. B. On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at...