If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

Question

Question

If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from the sale is

a.$986,700

b.$897,000

c.$672,750

d.$921,668

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Here, $897,000 of 10% bonds are issued at 102 3/4 (= 102.75)

Amount of cash received from the sale bond

                        = Value of Bond x ( Issue price of bond/ Face Value of Bond)
                        = $897,000 x (102.75/100)
                        = $921668

Hence

d. $921,668 is the correct Answer

Add a comment

Answer 2

Similar Homework Help Questions

If $816,000 of 8% bonds are issued at 102 3/4, the amount of cash received from...

If $816,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is a.$612,000 b.$816,000 c.$881,280 d.$838,440
If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the...

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is
If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the...

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the sale is $2,060,000 $1,940,000 $2,000,000 $2,100,000

If $482,000 of 9% bonds are issued at 96, the amount of cash received from the...

If $482,000 of 9% bonds are issued at 96, the amount of cash received from the sale is a.$525,380 b.$462,720 c.$438,620 d.$482,000
If $1,034,000 of 6% bonds are issued at 102 1/2, what is the amount of cash...

If $1,034,000 of 6% bonds are issued at 102 1/2, what is the amount of cash received from the sale? Select the correct answer. $1,059,850 $1,034,000 $775,500 $1,096,040
if $691,000 of 8% bonds are issued at 94, what is the amount of cash recieved...

if $691,000 of 8% bonds are issued at 94, what is the amount of cash recieved from the sale ? Calculator If $691,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. $635,720 $649,540 $746,280 $691,000 Assignment Main.do?invokerStake AssignmentSessionLocator Binprogressa false Calculator A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time when the market rate of interest is 12%. The straight-line...

A firm's cash flows from investing activities include: A) Cash received from the sale of a...

A firm's cash flows from investing activities include: A) Cash received from the sale of a plant asset B) Cash paid as dividends C) Cash received from the rendering of services to customers D) Cash paid to retire bonds payable 3. A firm's cash flow from financing activities includes: A) Cash paid to reacquire treasury stock B) Cash paid for merchandise purchased C) Cash received from sale of investment in bonds D) Cash received as interest income 4 Nacho Company...
7.(20%) On Apr 1, 2018, X Cop issued a P1,000,000, 10% bonds 102% and will mature on Dec. 31, 202...

7.(20%) On Apr 1, 2018, X Cop issued a P1,000,000, 10% bonds 102% and will mature on Dec. 31, 2021. Interest are paid semi-annually on July 1 and Jan. 1. Effective interest is 15%. (a) How much cash was received on April 1, 2018. How much interest expense was paid for the year? (c) How much was the actual interest expense for the year (d) How much is the carrying value of the bond at Dec. 31, 2018 assuming straight...
For each of the following scenarios: a) Prepare b) What was the amount of cash received...

For each of the following scenarios: a) Prepare b) What was the amount of cash received when the bond was issued? an amortization schedule for 3 years. c) What amount was recorded as Bonds Payable when the bond was issued? d) What is the amount of interest to be paid for the 2nd year? e) What is the amount of interest reported on the income statement for the 2nd year? f) Show how interest and bonds would be presented on...

P10-3 10-2, 10-4, 10-5 Comparing Bonds Issued at Par, at a Discount, and at a Premium...

P10-3 10-2, 10-4, 10-5 Comparing Bonds Issued at Par, at a Discount, and at a Premium (AP10-2) On January 1 of this year, Barnett Corporation sold bonds with a face value of $500,000 and a coupon rate of 7 percent. The bonds mature in 10 years and pay interest annually on December 31. Barnett uses the effective interest amortization method. Ignore any tax effects. Each case is independent of the other cases Required: Complete the following table. The interest rates...

If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

Homework Answers

Add Answer to:
If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

Post as a guest

Earn Coins

If $816,000 of 8% bonds are issued at 102 3/4, the amount of cash received from...

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the...

If $2,000,000 of 10% bonds are issued at 97, the amount of cash received from the...

If $482,000 of 9% bonds are issued at 96, the amount of cash received from the...

If $1,034,000 of 6% bonds are issued at 102 1/2, what is the amount of cash...

if $691,000 of 8% bonds are issued at 94, what is the amount of cash recieved...

A firm's cash flows from investing activities include: A) Cash received from the sale of a...

7.(20%) On Apr 1, 2018, X Cop issued a P1,000,000, 10% bonds 102% and will mature on Dec. 31, 202...

For each of the following scenarios: a) Prepare b) What was the amount of cash received...

P10-3 10-2, 10-4, 10-5 Comparing Bonds Issued at Par, at a Discount, and at a Premium...

If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

Homework Answers

Add Answer to: If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...

Post as a guest

Earn Coins

Add Answer to:
If $897,000 of 10% bonds are issued at 102 3/4, the amount of cash received from...