Question 27 (1 point) On January 1, 2021, Solo Inc. issued 1,000 of its 8%, $1,000...
On January 1, 2021, Solo Inc. issued 2,400 of its 7%, $1,000 bonds at 97. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2031. Solo paid $40,000 in bond issue costs. Solo uses straight-line amortization. The amount of interest expense for 2021 is: - o $168,000. o $175,200. o $179,200. o $186,400.
On January 1, 2018, Solo Inc. issued 1,200 of its 7%, $1,000 bonds at 97.8. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2028. Solo paid $52,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2018, balance sheet?
On January 1, 2016, Solo Inc. issued $379,000 of its 6% bonds at 103. Interest is payable semiannually on January 1 and July 1. The bonds mature in ten years. Solo uses straight-line amortization. The amount of interest expense for the year is:
Question 7 O out of 0.5 points On January 1, 2019, Solo Inc. issued $271,000 of its 7% bonds at 93. Interest is payable semiannually on January 1 and July 1. The bonds mature in ten years. Solo uses straight-line amortization. The amount of interest expense for the year is: Question 8 0 out of 0.5 points Pope Industries purchased a machine from Fitz Corporation on October 1, 2016. In payment for the $211,000 purchase, Pope issued a two year...
P15.7A (LO 2, 3, 4, 7) AP On January 1, 2021, DC Ltd. issued bonds with a maturity value of $8 million when the market rate of interest was 4%. The bonds have a coupon (contractual) interest rate of 5% and mature on January 1, 2031. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31. Record bond transactions including bond redemption; show balance sheet presentation. Instructions...
On January 1, 2016, Bonita Industries issued 3900 of its 10%, $1,000 bonds for $4056000. These bonds were to mature on January 1, 2026 but were callable at 101 any time after December 31, 2019. Interest was payable semiannually on July 1 and January 1. On July 1, 2021, Bonita called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Bonita's gain or loss in 2021 on this early extinguishment of...
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 January 1, 2013, Sheffield Corp. issued 3100 of its 10%, $1,000 bonds for $3224000. 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, Sheffield called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, Sheffield's gain or loss in 2018 on this early extinguishment of...
Mitchell Inc., issued 40, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest semiannually each June 30 and December 31, and were issued to yield 7%. The bonds mature December 31, 2022, and the company will use the straight-line interest method to amortize the bond discount or premium. Assume that the difference between the effective interest method and the straight-line interest method is not material. Required a. Determine the selling price of the bonds. b. Prepare the...
On January 1, 2018, Clear View Video, Incorporated issued $1,200,000 of $1,000 par value, 10%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest payment due at the end of the period on July 1, 2018. The market rate of interest for similar non-convertible bonds on the date of the bond issue was 12%. The bonds were sold for $1,580,712, yielding an effective rate of 4%. Each bond is convertible into 80 shares...