Question
In: Accounting
At December 31, 2017, the following balances existed for Sweeney Corporation: Bonds Payable (10%) $1,500,000 Premium...
At December 31, 2017, the following balances existed for Sweeney Corporation:
|
Bonds Payable (10%) |
$1,500,000 |
|
Premium on Bonds Payable |
40,000 |
The bonds mature on 12/31/22. Straight-line amortization is used.
If 30% of the bonds are retired at 105 on January 1, 2019, what is the loss on early extinguishment?
Solutions
Expert Solution
Total Bond Premium yet to be amortized = 40000
30% of this premium = 12000
Year 2018 amortization on these bonds 12000/5 = 2400
Premium yet to be amortized on these 30% bonds = 9600
Journal entry on retirement will be
Bonds Payable 1500000/100*30 = 450000
Premium on Bonds Payable = 9600
Loss on Early extinguishment (Bal. Fig.) = 12900
Cash 1500000/100*30*1.05 = 472500
ANSWER:
Loss on Early extinguishment (Bal. Fig.) 12900
ekkarill92 answered 1 year agoRelated Solutions
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA
Corporation:
Bonds Payable (6%)
$600,000
Discount on Bonds Payable
50,000
The bonds mature on 12/31/28. Straight-line amortization is
used.
If 60% of the bonds are retired at 104
on January 1, 2025, what is the gain or loss on early
extinguishment?
Answer
$_______________
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA
Corporation:
Bonds Payable (6%)
$600,000
Discount on Bonds Payable
50,000
The bonds mature on 12/31/28. Straight-line amortization is
used.
If 60% of the bonds are retired at 104
on January 1, 2025, what is the gain or loss on early
extinguishment?
Answer
$_______________
2.
On January 1, 2020, Scottsdale Company issued its 12% bonds in
the face amount of $3,000,000, which mature on January 1, 2030. The
bonds were issued...
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA
Corporation:
Bonds Payable (6%)
$600,000
Discount on Bonds Payable
50,000
The bonds mature on 12/31/28. Straight-line amortization is
used.
If 60% of the bonds are retired at 104
on January 1, 2025, what is the gain or loss on early
extinguishment?
Answer
$_______________
2.
On January 1, 2020, Scottsdale Company issued its 12% bonds in
the face amount of $3,000,000, which mature on January 1, 2030. The
bonds were issued...
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA
Corporation:
Bonds Payable (6%)
$600,000
Discount on Bonds Payable
50,000
The bonds mature on 12/31/28. Straight-line amortization is
used.
If 60% of the bonds are retired at 104
on January 1, 2025, what is the gain or loss on early
extinguishment?
Answer
$_______________
2.
On January 1, 2020, Scottsdale Company issued its 12% bonds in
the face amount of $3,000,000, which mature on January 1, 2030. The
bonds were issued...
The December 31, 2017, balance sheet of Hess Corporation includes the following items: 9% bonds payable...
The December 31, 2017, balance sheet of Hess Corporation
includes the following items:
9% bonds payable due December 31, 2026 $5,000,000
Unamortized premium on bonds payable 135,000
The bonds were issued on December 31, 2016, at 103, with
interest payable on July 1 and December 31 of each year. Hess uses
straight-line amortization. On March 1, 2018, Hess retired
$2,000,000 of these bonds at 98 plus accrued interest. What should
Hess record as a gain on retirement of these bonds?...
The books of Crane Corporation carried the following account balances as of December 31, 2017. Cash...
The books of Crane Corporation carried the following account
balances as of December 31, 2017.
Cash
$ 206,000
Preferred Stock (6% cumulative, nonparticipating, $50 par)
282,000
Common Stock (no-par value, 328,000 shares issued)
1,640,000
Paid-in Capital in Excess of Par—Preferred Stock
141,000
Treasury Stock (common 2,900 shares at cost)
30,800
Retained Earnings
108,400
The company decided not to pay any dividends in 2017.
The board of directors, at their annual meeting on December 21,
2018, declared the following: “The current...
ABC reports the following accounts and balances at December 31, 2017: Accounts Payable $22,800 Accounts Receivable &nb
ABC reports the following accounts and balances at December 31,
2017:
Accounts
Payable
$22,800
Accounts
Receivable
18,800
Cash
24,400
Land
82,400
Machine
129,200
Merchandise
Inventory
63,600
Long-term Note
Payable
79,200
Short-term Note
Payable
14,400
Paid-in
Capital
200,000
Retained
Earnings
?
Sales
Revenue
122,000
Cost of Goods
Sold
80,000
Operating
Expenses
40,000
Required:
Prepare a balance sheet at December 31, 2017 Also, prepare an
income statement for the year ended December 31, 2017. Ignore
depreciation expense and interest expense.
Glenn Corporation had the following list of account balances for the year ended December 31, 2017....
Glenn Corporation had the following list of account
balances for the year ended December 31, 2017.
Net Sales
$1,350,000
Cash
$400,000
Accounts Receivable
120,000
Operating Expenses
380,000
Equipment
300,000
Common Stock
250,000
Accounts Payable
100,000
Interest Income
20,000
Accumulated Depreciation
30,000
Cost of Goods Sold
750,000
Inventories
30,000
Prepaid Rent
10,000
Income Taxes Payable
40,000
Income Taxes Expense
71,000
Notes Payable
Dividends
Interest Expense
200,000
10,000
4,000
Retained Earnings, January 1,
2017
85,000
Required:
Calculate net income for...
On December 31, 2018, Herndon Corporation issues 5%, 10-year convertible bonds payable with a face value...
On December 31, 2018, Herndon Corporation issues 5%, 10-year
convertible bonds payable with a face value of $2,000,000. The
semiannual interest dates are June 30 and December 31. The market
interest rate is 7%. Herndon amortizes bond discounts using the
effective-interest method.
1. Use the pv function in excel to calculate the issue price of
the bonds.
2. Prepare an effective-interest method amortization table for
the first four semiannual interest periods.
3. Journalize the following transactions:
a. Issuance of the...
On December 31, 2018, Tugaboo Corporation issues 5%, 10-year convertible bonds payable with a face value...
On December 31, 2018, Tugaboo Corporation issues 5%, 10-year
convertible bonds payable with a face value of $ 5 comma 000 comma
000. The semiannual interest dates are June 30 and December 31. The
market interest rate is 6%. Tugaboo amortizes bond discounts using
the effective-interest method.
1.
Use the PV function in Excel Superscript ® to calculate the issue
price of the bonds.
2.
Prepare an effective-interest method amortization table for the
first four semiannual interest periods.
3.
Journalize...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...
ADVERTISEMENT