Clabber Company has bonds outstanding with a par value of $108,000 and a carrying value of...
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.
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$3,100 loss.
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$5,900 gain.
Homework Answers
Gain on retirement = Carrying value - Calls price
= $102100 - 99000
= $3100 gain
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Clabber Company has bonds outstanding with a par value of
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Paulson Company issues 8%, four-year bonds, on December 31, 2018, with a par value of $108,000...
Paulson Company issues 8%, four-year bonds, on December 31,
2018, with a par value of $108,000 and semiannual interest
payments.
Semiannual Period-End
Unamortized Discount
Carrying Value
(0)
12/31/2018
$
6,893
$
101,107
(1)
6/30/2019
6,031
101,969
(2)
12/31/2019
5,169
102,831
Use the above straight-line bond amortization table and prepare
journal entries for the following.
(a) The issuance of bonds on December 31, 2018.
(b) The first interest payment on June 30, 2019.
(c) The second interest payment on December...
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Woodwick Company issues 8%, five-year bonds, on December 31, 2016, with a par value of $108,000...
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Unamortized Discount
Carrying Value
(0)
12/31/2018
$
6,893
$
101,107
(1)
6/30/2019
6,031
101,969
(2)
12/31/2019
5,169
102,831
Use the above straight-line bond amortization table and prepare
journal entries for the following.
(a) The issuance of bonds on December 31, 2018.
(b) The first interest payment on June 30, 2019.
(c) The second interest payment on December...
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