Carrying value of bonds = 1060000+(32000*60%) = 1079200
Gain (loss) = Carrying value-Redemption value = 1079200-1049400 = 29800
So answer is d) $29800 Gain
A corporation issued 8% bonds with a par value of $1,060,000, receiving a $32,000 premium. On...
A corporation issued 8% bonds with a par value of $1,190,000, receiving a $58.000 premium. On the interest date 5 years later, after the bond interest was paid and after 40% of the premium had been amortized, the corporation purchased the entire issue on the open market at 99 and retired it. The gain or loss on this retirement is: Multiple Choice o o o О 6200 gain o o st 900 gain
7. A company issued 6-year, 8% bonds with a par value of $550,000. The market rate when the bonds were issued was 7.5%. The company received $555,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: 8. A corporation issued 8% bonds with a par value of $1,010,000, receiving a $22,000 premium. On the interest date 5 years later, after the bond interest was paid and after 40%...
On February 1, 2017, Pat Weaver Inc. (PWI) issued 9%, $1,900,000 bonds for $2,200,000. PWI retired all of these bonds on January 1, 2018, at 103. Unamortized bond premium on that date was $195,700. How much gain or loss should be recognized on this bond retirement? Multiple Choice $171,000 gain. Ο $138,700 gain. Ο Ο $0 gain. Ο $198,000 gain.
Q8. On Jan. 1, 2010, General Bell Corporation issued at 97%, bonds with a par value of SR 800,000 due in 20 years. It incurred bond issue cost totaling SR 16,000. Eight years after the issue date, General Bells calls the entire issue at 101% and cancels it. Compute the loss on redemption (extinguishment). Q.9. On Jan. 1, 2011, STC retired SR 500,000 of bonds at 99%. At the time of retirement, the unamortized premium was SR 15,000 and unamortized...
On January 1, Elias Corporation issued 6% bonds with a face value of $94,000. The bonds are sold for $91,180. 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. $470 b. $2,820 c. $5,640 d. $5,922 Bonds Payable has a balance of $946,000...
On January 1, 2013, Swifty Corporation issued 2100 of its 10%, $1,000 bonds for $2184000. These bonds were to mature on January 1, 2023 but were callable at 101 any time after December 31, 2016. Interest was payable semiannually on July 1 and January 1. On July 1, 2018, Swifty called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Swifty's gain or loss in 2018 on this early extinguishment of...
On February 1, 2020, Pat Weaver Inc. (PWI) issued 7%, $1,600,000 bonds for $1,900,000. PWI retired all of these bonds on January 1, 2021, at 104. Unamortized bond premium on that date was $166,400. How much gain or loss should be recognized on this bond retirement? Multiple Choice $112,000 gain. $0 gain. $102,400 gain. $133,000 gain.
Saved 10 On February 1, 2020, Pat Weaver Inc. (PWI) issued 9%, $1,100,000 bonds for $1,400,000. PWI retired all of these bonds on January 1, 2021, at 105. Unamortized bond premium on that date was $115,500. How much gain or loss should be recognized on this bond retirement? Multiple Choice $126,000 gain. $99,000 gain. $60,500 gain. $0 gain.
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 February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,800,000 bonds for $2,100,000. PWI retired all of these bonds on January 1, 2021, at 103. Unamortized bond premium on that date was $185,400. How much gain or loss should be recognized on this bond retirement? Multiple Choice o $131,400 gain. O sogon O $231,000 gain. o $198,000 gain