Homework Answers
The answer would be Debit bonds payable $328000.
$314000 is not the actual value, when dealing with such transactions where two costs are given we should look at which figure is the value in the books, from the question we can understand 328000 is the book value. Since they are a liability, and liabilities have a credit balance, we would to debit the amount and then credit it to Equity/commonstock.
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On January 1, $314,400 of par value bonds with a carrying value of $328,000 is converted...
on january 1, $362,400 of par value bonds with a carrying value of $388,000 is converted...
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A company issues 7% bonds with a par value of $140,000 at par on January 1 The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is: ο ο $8, 400. ο $4900. ο 4,200. ο A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $11,600. The present value of...
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15 and Question 2 If bonds with a face value of $128000 are converted into common...
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Exercise 16-4 On January 1, 2016, when its $30 par value common stock was selling for...
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On January 1, a company issues bonds dated January 1 with a par value of $210,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $218,105. The journal entry to record the issuance of the bond is: Multiple Choice O Debit Cash $218,105; credit Premium on Bonds Payable $8,105, credit Bonds Pable $210,000 Debit Cash $218,105,...
On January 1, 2018, when its $30 par value common stock was selling for $80 per...
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On January 1, a company issues bonds dated January 1 with a par value of $320,000....
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On January 1, a company issues bonds dated January 1 with a par value of $450,000....
On January 1, a company issues bonds dated January 1 with a par value of $450,000. The bonds mature in 5 years. The contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The market rate is 11% and the bonds are sold for $433,026. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice O Debit Interest Expense $21,183.57; debit Premium on Bonds Payable $1,316.43;...
On January 1, a company issues bonds dated January 1 with a par value of $220,000....
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
A company issues 7% bonds with a par value of $140,000 at par on January 1 The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is: ο ο $8, 400. ο $4900. ο 4,200. ο A company purchased equipment and signed a 5-year installment loan at 10% annual interest. The annual payments equal $11,600. The present value of...
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the issuance of the bond is: Multiple Choice C Debit Cash $228,930; credit Bonds Payable $228,930 Debit Cash $228,930; credit Premium on Bonds Payable $8,930...
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Exercise 16-4 On January 1, 2016, when its $30 par value common stock was selling for $80 per share, Pina Corp. issued $12,500,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $13,500,000. The present value of the bond payments at the time of issuance was $10,625,000, and the corporation believes the difference between...
On January 1, a company issues bonds dated January 1 with a par value of $210,000. The bonds mature in 5 years. The contract rate is 11%, and interest is paid semiannually on June 30 and December 31. The market rate is 10% and the bonds are sold for $218,105. The journal entry to record the issuance of the bond is: Multiple Choice O Debit Cash $218,105; credit Premium on Bonds Payable $8,105, credit Bonds Pable $210,000 Debit Cash $218,105,...
On January 1, 2018, when its $30 par value common stock was selling for $80 per share, a corporation issued $20 million of 10% convertible debentures due in 10 years. The conversion option allowed the holder of each $1,000 bond to convert it into five shares of the corporation's $30 par value common stock. The debentures were issued for $21 million. At the time of issuance, the present value of the bond payments was $18.5 million, and the corporation believes...
On January 1, a company issues bonds dated January 1 with a par value of $320,000. The bonds mature in 5 years. The contract rate is 7% , and interest is paid semiannually on June 30 and December 31. The market rate is 6 % and the bonds are sold for $333,650. The journal entry to record the first interest payment using the effective interest method of amortization is: (Rounded to the nearest dollar.) Multiple Choice Debit Bond Interest Expense...
On January 1, a company issues bonds dated January 1 with a par value of $450,000. The bonds mature in 5 years. The contract rate is 10%, and interest is paid semiannually on June 30 and December 31. The market rate is 11% and the bonds are sold for $433,026. The journal entry to record the second interest payment using the effective interest method of amortization is: Multiple Choice O Debit Interest Expense $21,183.57; debit Premium on Bonds Payable $1,316.43;...
On January 1, a company issues bonds dated January 1 with a par value of $220,000. The bonds mature in 5 years. The contract rate is 9% and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $228,930. The journal entry to record the first interest payment using the effective interest method of amortization is (Rounded to the nearest dollar.) Multiple Choice Debt Bond Interest Expense 39157, de...
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