On September 21, one year before maturity, Duller Image, Inc., retired $1,200,000 of its 5% gross...
On September 21, one year before maturity, Duller Image, Inc., retired $1,200,000 of its 5% gross bonds payable at the current market price of 98% of the face amount (or 0.98 × $1,200,000 = $1,176,000. The bond book value on September 21 is $1,150,000, reflecting an unamortized discount of $50,000. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of these bonds? Ignore fees.
Homework Answers
Gain / (Loss) on retirement = Proceeds from retirement - Carrying value of the bonds = $ 1,176,000 - $ 1,150,000 = $ 26,000
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On September 21, one year before maturity, Duller Image, Inc.,
retired $1,200,000 of its 5% gross...
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company...
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 x 1.01 = $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of...
On September 1, 2020, Hall Corp. retired early its 15 year bonds with a face of...
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1.Do the following problems in Excel. Submit your Excel spreadsheet so I can see how you solved t...
1.Do the following problems in Excel. Submit your Excel spreadsheet so I can see how you solved the problems. Gain or Loss on Bond redemption On April 20, 2018, two years before maturity, Van Gogh Company retires £150,000 of its 5.6% semi-annual bonds payable at the price of 105. The bond book value April 20, 2018 is £155,000, reflecting an unamortized premium. Bond interest is fully paid and recorded up to the date of retirement. What is the gain or...
Hi, I wanna know those questions how to solve step by step. I put solutions on...
Hi, I wanna know those
questions how to solve step by step.
I put solutions on the below, but I don't know where those
numbers came?
Is there any ways to calculate them more easily? Thank you.
89. c [BC1]
= $2,053,000 (CV of retired bonds)
$2,053,000
– ($2,000,000 × .98) = $93,000.
90. b [BC2]
= $4,036,000 (CV of retired bonds)
$4,036,000
– ($4,000,000 .96) = $196,000.
91. b $2,850,000
+ [($2,850,000 × .06) – ($3,000,000 × .05)] = $2,871,000 (CV of
bonds)
$2,871,000...
EXAn Fat the bej and a $5 mm urke ing rate I. Select the best answer...
EXAn Fat the bej and a $5 mm urke ing rate I. Select the best answer (60 points) The conversion of bonds is most commonly recorded by the 1 gslain the mit entries eries: C fair v a. incremental method b. proportional method. c. market value method. d. book value method If a company offers additional considerations to convertible bondholders In order to encourage 2. conversion, it is called a(an): of end mont nsid mobi a. forced conversion. b. sweetener...
One Product Corp. (OPC) incorporated at the beginning of last year. The balances on its postclosing...
One Product Corp. (OPC) incorporated at the beginning of last
year. The balances on its postclosing trial balance prepared on
December 31, at the end of its first year of operations, were:
Cash $ 19,500
Accounts Receivable 8,250
Allowance for Doubtful Accounts 885
Inventory 12,060
Prepaid Rent 1,600
Equipment 25,000
Accumulated Depreciation 2,400
Accounts Payable 0
Sales Tax Payable 500
FICA Payable 600
Withheld Income Taxes Payable 500
Salaries and Wages Payable 1,600
Unemployment Tax Payable 300
Unearned Revenue 4,500...
One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its post-closing...
One Product Corporation (OPC) incorporated at the beginning of last year. The balances on its post-closing trial balance prepared on December 31, at the end of its first year of operations, were: Cash 21,980 Accounts Receivable 8,310 Allowance for Doubtful Accounts 1,065 Inventory 12,420 Prepaid Rent 1,960 Equipment 46,600 Accumulated Depreciation 4,560 Accounts Payable 0 Sales Tax Payable 500 FICA Payable 600 Withheld Income Taxes Payable 500 Salaries and Wages Payable 1,600 Unemployment Tax Payable 300 Deferred Revenue 4,500 Interest...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is...
CCC Conglomerates is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $378,000, annual operating costs of $22,000, and a 3-year life. Machine B costs $257,000, has annual operating costs of $43,000, and a 2-year...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
Determining Gain or Loss on Bond Redemption On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 x 1.01 = $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of...
Hi, I wanna know those
questions how to solve step by step.
I put solutions on the below, but I don't know where those
numbers came?
Is there any ways to calculate them more easily? Thank you.
89. c [BC1]
= $2,053,000 (CV of retired bonds)
$2,053,000
– ($2,000,000 × .98) = $93,000.
90. b [BC2]
= $4,036,000 (CV of retired bonds)
$4,036,000
– ($4,000,000 .96) = $196,000.
91. b $2,850,000
+ [($2,850,000 × .06) – ($3,000,000 × .05)] = $2,871,000 (CV of
bonds)
$2,871,000...
EXAn Fat the bej and a $5 mm urke ing rate I. Select the best answer (60 points) The conversion of bonds is most commonly recorded by the 1 gslain the mit entries eries: C fair v a. incremental method b. proportional method. c. market value method. d. book value method If a company offers additional considerations to convertible bondholders In order to encourage 2. conversion, it is called a(an): of end mont nsid mobi a. forced conversion. b. sweetener...
One Product Corp. (OPC) incorporated at the beginning of last
year. The balances on its postclosing trial balance prepared on
December 31, at the end of its first year of operations, were:
Cash $ 19,500
Accounts Receivable 8,250
Allowance for Doubtful Accounts 885
Inventory 12,060
Prepaid Rent 1,600
Equipment 25,000
Accumulated Depreciation 2,400
Accounts Payable 0
Sales Tax Payable 500
FICA Payable 600
Withheld Income Taxes Payable 500
Salaries and Wages Payable 1,600
Unemployment Tax Payable 300
Unearned Revenue 4,500...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
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