Question
In: Accounting
On March 1, 2020, Spring Break Company sold 4,000 individual bonds. The bond terms were as...
On March 1, 2020, Spring Break Company sold 4,000 individual bonds. The bond terms were as follows: 25 years, $1,000 face value, and 2.1% coupon rate. The bonds were issued at an annual effective interest rate of 1.9%. Interest is payable semi-annually and is due each year on September 1 and March 1. As of March 1, 2020, bond issue costs of $103,500 were incurred in preparing and selling the bond issue. Calculate the selling price of the bond
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1,...
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March
1, 2020, on June 1, 2020. The bonds paid interest on September 1
and March 1 of each year. The bonds' maturity date was March 1,
2030, and the bonds were issued to yield 12%. Novak's fiscal
year-end was February 28, and the company followed IFRS. On June 1,
2021, Novak bought back $2,430,000 worth of bonds for $2,330,000
plus accrued interest.
1)
Using 1. a financial calculator, or...
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1,...
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March
1, 2020, on June 1, 2020. The bonds paid interest on September 1
and March 1 of each year. The bonds' maturity date was March 1,
2030, and the bonds were issued to yield 12%. Novak's fiscal
year-end was February 28, and the company followed IFRS. On June 1,
2021, Novak bought back $2,430,000 worth of bonds for $2,330,000
plus accrued interest.
1)
Using 1. a financial calculator, or...
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March 1, 2020, on June 1,...
Novak Ltd. sold $6,430,000 of 10% bonds, which were dated March
1, 2020, on June 1, 2020. The bonds paid interest on September 1
and March 1 of each year. The bonds' maturity date was March 1,
2030, and the bonds were issued to yield 12%. Novak's fiscal
year-end was February 28, and the company followed IFRS. On June 1,
2021, Novak bought back $2,430,000 worth of bonds for $2,330,000
plus accrued interest.
1 )
Using 1. a financial calculator,...
Marin Ltd. sold $6,120,000 of 12% bonds, which were dated March 1, 2020, on June 1,...
Marin Ltd. sold $6,120,000 of 12% bonds, which were dated March
1, 2020, on June 1, 2020. The bonds paid interest on September 1
and March 1 of each year. The bonds' maturity date was March 1,
2030, and the bonds were issued to yield 14%. Marin's fiscal
year-end was February 28, and the company followed IFRS. On June 1,
2021, Marin bought back $2,120,000 worth of bonds for $2,020,000
plus accrued interest.
1- Using 1. a financial calculator, or...
Whispering Ltd. sold $6,830,000 of 8% bonds, which were dated March 1, 2020, on June 1,...
Whispering Ltd. sold $6,830,000 of 8% bonds, which were dated
March 1, 2020, on June 1, 2020. The bonds paid interest on
September 1 and March 1 of each year. The bonds' maturity date was
March 1, 2030, and the bonds were issued to yield 10%. Whispering's
fiscal year-end was February 28, and the company followed IFRS. On
June 1, 2021, Whispering bought back $2,830,000 worth of bonds for
$2,730,000 plus accrued interest.
a,Using 1. a financial calculator, or 2....
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March 1, 2015. The bonds were dated January...
Wainwright Electric sold $3,000,000, 10%, 10-year bonds on March
1, 2015. The bonds were dated January 1 and pay interest September
1 and March 1. Wainwright Electric uses the straight-line method to
amortize bond premium or discount. The bonds were sold at 104. The
company’s year ends on December 31.
Instructions
(a) Prepare the journal entry to record the issuance of the
bonds on March 1, 2015.
(b) Prepare a bond premium amortization schedule for the first 4
interest...
On March 1, 2020, Crane Company sold goods to Goosen Inc. for $702,000 in exchange for...
On March 1, 2020, Crane Company sold goods to Goosen Inc. for
$702,000 in exchange for a 5-year, zero-interest-bearing note in
the face amount of $1,182,911 (an inputed rate of 11%). The goods
have an inventory cost on Crane’s books of $395,000.
(a) Prepare the journal entries for Crane on March
1, 2020. (Credit account titles are automatically
indented when the amount is entered. Do not indent manually. If no
entry is required, select "No entry" for the account titles...
Jack's Electric sold $4,495,000, 13%, 10-year bonds on January 1, 2020. The bonds were dated January...
Jack's Electric sold $4,495,000, 13%, 10-year bonds on January
1, 2020. The bonds were dated January 1, 2020, and paid interest on
January 1. The bonds were sold at 98.
Prepare the journal entry to record the issuance of the bonds on
January 1, 2020.
At December 31, 2020, $7,500 of the Discount on Bonds Payable
account has been amortized. Show the balance sheet presentation of
the long-term liability at December 31, 2020.
On January 1, 2022, when the carrying...
On 1 March 2020, goods valuing $1000 were bought from Mr. D. On 15 March 2020,...
On 1 March 2020, goods valuing $1000 were bought from
Mr. D.
On 15 March 2020, goods, valued at $200, returned to Mr.
D .
On 1 May 2020, goods for $2000 were sold to Mr.
E.
On 15 May 2020, Mr. E returned goods, valued at $500, to
the business.
On 1 June 2020, goods, valued at $600, were bought from
Mr. Z on credit.
On 15 June 2020, the due amount of $800 was paid to Mr.
D...
1. On March 31, 2020, if the balance in Bonds Payable is $3,000,000 and the balance...
1. On March 31, 2020, if the balance in Bonds Payable is
$3,000,000 and the balance in Unamortized Premium on Bonds Payable
(Premium on Bonds Payable) is $100,000, what is the amount for the
carrying value of the bonds at March 31, 2020?
A. 3,100,000
B. 3,000,000
C. 2,900,000
D. 100,000
E. None of the above
2. STATEMENT OF CASH FLOW: Company A has a net income of
1,000,000, depreciation of 500,000, a decrease in accounts
receivable of 300,000, and...
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