Mandarin Company has 9%, 20-year bonds outstanding with a par
value of
$500,000 and a carrying value of $475,000. The company calls the
bonds at
$482,000. Calculate the gain or loss on the retirement of these
bonds.?
Gain or loss on the retirement of bonds = Call value of bonds-Carrying value of bonds
= 482000-475000
Loss on the retirement of bonds = 7000
Mandarin Company has 9%, 20-year bonds outstanding with a par value of $500,000 and a carrying...
Clabber Company has bonds outstanding with a par value of $100,000 and a carrying value of $97,300. If the company calls these bonds at a price of $95,000, the gain or loss on retirement is: $5,000 loss $2,700 gain $2,700 loss $2,300 loss $2,300 gain
Clabber Company has bonds outstanding with a par value of $108,000 and a carrying value of $102,100. If the company calls these bonds at a price of $99,000, the gain or loss on retirement is: $5,900 loss. $3,100 gain. $9,000 loss. $3,100 loss. $5,900 gain.
6. A company has bonds outstanding with a par value of $200,000. The unamortized discount on these bonds is $4,500. The company retired bonds by buying them on the open market at $195,000. What is the gain or loss on this retirement? A. $0 gain or loss B. $5,000 loss C. $5,000 gain D. $500 loss E. $500 gain (show your work please)
1a) A company holds a $150,000 par value of bonds with a carrying value of $147,950. The company calls the bonds at $151,000. Prepare the journal entry to record the retirement of the bonds. 1b) On January 1 of Year 1, Congo Express Airways issued $3,240,000 of 8% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $2,980,000 and the market rate of interest for similar bonds is 9%. The bond premium or...
A company issues 8%, 20-year bonds with a par value of $500,000. The current market rate for the bonds is 8%. The amount of interest owed to the bondholders for each semiannual interest payment is a. $40,000. b. $0. c. $20,000. d. $800,000. e. $400,000.
The Lone Star Company has $1,000 par value bonds outstanding at 9 percent interest. The bonds will mature in 20 years. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bonds if the present yield to maturity is. (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.) c. 13 percent
S Company issued $1,000,000 par value 10-year bonds at 102 on January 1, 20X5, which M Corporation purchased. The coupon rate on the bonds is 9 percent. Interest payments are made semiannually on July 1 and January 1. On Jan 1, 20X8, P Company purchased $500,000 par value of the bonds from M for $492,200. P owns 65 percent of S’s voting shares. Required: What amount of gain or loss will be reported in S's 20X8 income statement on the...
The Raptor retires a $20 million bond issue when the carrying value of the bonds is $18 million, but the market value of the bonds is $15 million. The entry to record the retirement will include: Muliple Choice c ) A debit of $3 million to a loss account Acredit of $3 million to gain account O C ) No gain or loss on retirement O O A credit to cah for $million
The carrying value of $60,000 face value bonds at the end of the third year is $61,116. The stated rate is 6%; the effective rate is 5%. On September 1, Year 4, the bonds are purchased on the market for $60,200 plus accrued interest. What is the gain or loss on retirement? Interest is paid annually.
On January 1, 2018, Patel Company issued $500,000 of 11%, five-year bonds payable at 102. Patel Company has extra cash and wishes to retire the bonds payable on January1, 2019, immediately after making the second semiannual interest payment. To retire the bonds, Patel pays the market price of 99. 1. What is Patel Company's carrying amount of the bonds payable on the retirement date? 2. How much cash must Patel Company pay to retire the bonds payable? 3. Compute Patel...