Homework Answers
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1. Cash proceeds = Face value of bond * 95% = 200,000 * 95% = 190,000 Option D is the answer |
| 2. Option A |
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If bonds with a face value of $200,000 are issued at 95, the amount of cash...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
State Street Beverage Company issues $812,000 of 8%, 10-year bonds on March 31, 2017. The bonds...
State Street Beverage Company issues $812,000 of 8%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true? O A. If the market rate of interest is 9%, the bonds will issue at a premium. OB. If the market rate of interest is 9%, the bonds will issue at par. OC. If the market rate of interest is 9%, the bonds will issue above par. OD. If...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
If bonds with a face value of $202,000 are issued at par, the amount of cash...
If bonds with a face value of $202,000 are issued at par, the amount of cash proceeds is _ O A. $201,891 O B. $220,180 O C. $202,000 OD. $238,360
On January 1, Year 1, Sheffield Co. issued bonds with a face value of $200,000, a...
On January 1, Year 1, Sheffield Co. issued bonds with a face value of $200,000, a term of ten years, and a stated interest rate of 6%. The bonds were issued at 105, and interest is payable each December 31. Sheffield uses the straight-line method to amortize the bond discount. The carrying value of the bonds that would be reported on the December 31, Year 4 balance sheet is: Multiple Choice A. $204,000. B. $200,000. C. $205,000. D. $206,000.
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...
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000....
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000. The bonds are sold for $50,440. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $6,396 Ob. $1,560 Oc. $6,240 Od. $520
Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest...
Victor Company issued bonds with a $250,000 face value and a 6% stated rate of interest on January 1, 2016. The bonds carried a 5-year term and sold for 95. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. A)The carrying value of the bond liability on the January 1, 2016 would be? B) The amount of interest expense appearing on the December 31, 2016 would be? C) The carrying value of the...
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...
Diaz Company issued $122,000 face value of bonds on January 1, 2018. The bonds had a...
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...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
State Street Beverage Company issues $812,000 of 8%, 10-year bonds on March 31, 2017. The bonds pay interest on March 31 and September 30. Which of the following statements is true? O A. If the market rate of interest is 9%, the bonds will issue at a premium. OB. If the market rate of interest is 9%, the bonds will issue at par. OC. If the market rate of interest is 9%, the bonds will issue above par. OD. If...
On January 1 of the current year, Barton Corporation issued 6% bonds with a face value of $87,000. The bonds are sold for $82,650. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is Oa. $435 Ob. $6,525 Oc. $2,610 Od. $6,090
If bonds with a face value of $202,000 are issued at par, the amount of cash proceeds is _ O A. $201,891 O B. $220,180 O C. $202,000 OD. $238,360
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...
Calculator On January 1, Elias Corporation issued 12 % bonds with a face value of $52,000. The bonds are sold for $50,440. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a. $6,396 Ob. $1,560 Oc. $6,240 Od. $520
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