Question
In: Accounting
Enterprise Group issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2015 for $102,000. Enterprise...
Enterprise Group issued $100,000 of 3-year, 6% bonds outstanding on December 31, 2015 for $102,000. Enterprise uses straight-line amortization. On April 1, 2016, $20,000 of the bonds were retired at 104.
What is the book value of the bonds sold on April 1? (PLEASE SHOW ALL WORK AND EXPLAIN)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
5a) If MSG Corporation issued $102,000 of 3-year, 7% bonds outstanding on December 31, 2020 for...
5a) If MSG Corporation issued $102,000 of 3-year, 7% bonds
outstanding on December 31, 2020 for $106,000. The bonds pay
interest annually and MSG uses straight-line amortization. On May
1, 2021, $10,200 of the bonds were retired at 120. As a result of
the retirement, MSG will report: (Do not round intermediate
calculations and round final answer to nearest whole
dollar.)
Multiple Choice
a $1,640 loss.
a $1,684 loss.
a $3,280 loss.
a $3,280 gain.
5b) But then on January...
Cullumber Corporation had 102,000 common shares outstanding on December 31, 2019. During 2020, the company issued...
Cullumber Corporation had 102,000 common shares outstanding on
December 31, 2019. During 2020, the company issued 12,000 shares on
March 1, retired 6,800 shares on July 1, issued a 20% stock
dividend on October 1, and issued 18,300 shares on December 1. For
2020, the company reported net income of $408,000 after a loss from
discontinued operations of $64,000 (net of tax). The company issued
a 2-for-1 stock split on February 1, 2021, and the company’s
financial statements for the...
On January 1, 2016, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2020, for...
On January 1, 2016, Gates Corporation issued $100,000 of 5-year
bonds due December 31, 2020, for $103,604.79 minus debt issuance
costs of $3,000. The bonds carry a stated rate of interest of 13%
payable annually on December 31 and were issued to yield 12%. The
company uses the effective interest method of amortization to
amortize any discounts or premiums and the straight-line method to
amortize the debt issuance costs.
Required:
Prepare the journal entries to
record the issuance of the...
On January 1, 2016, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2020, for...
On January 1, 2016, Gates Corporation issued $100,000 of 5-year
bonds due December 31, 2020, for $103,604.79 minus debt issuance
costs of $3,000. The bonds carry a stated rate of interest of 13%
payable annually on December 31 and were issued to yield 12%. The
company uses the effective interest method of amortization to
amortize any discounts or premiums and the straight-line method to
amortize the debt issuance costs.
Required: Prepare the journal entries to record the issuance of
the...
Paulson Company issues 6%, four-year bonds, on December 31, 2017, with a par value of $100,000...
Paulson Company issues
6%, four-year bonds, on December 31, 2017, with a par value of
$100,000 and semiannual interest payments.
Semiannual Period-End
Unamortized Discount
Carrying Value
(0)
12/31/2017
$
6,733
$
93,267
(1)
6/30/2018
5,891
94,109
(2)
12/31/2018
5,049
94,951
Use the above straight-line bond amortization table and prepare
journal entries for the following.
(a) The issuance of bonds on December 31, 2017.
(b) The first interest payment on June 30, 2018.
(c) The second interest payment on December...
Arthur, Inc., had 610,000 shares of common stock issued and outstanding on December 31, 2015. On...
Arthur, Inc., had 610,000 shares of common stock issued and
outstanding on December 31, 2015. On July 1, 2016, an additional
40,000 shares of common stock were issued for cash. Arthur, Inc.
also had unexercised stock options to purchase 32,000 shares of
common stock at $15 per share outstanding at the beginning and end
of 2016. The average market price of Arthur, Inc. common stock was
$20 during 2016. How many shares that should be included in
computing diluted earnings...
Suomi Corp had a $4,000,000 6% 10-year bonds that were issued on December 31, 2014 at...
Suomi Corp had a $4,000,000 6% 10-year bonds that were issued on
December 31, 2014 at 94, with interest payable semiannually, on
June 30 and December 31. Suomi uses straight-line method of
amortization. On April 1, 2017, Suomi retired $600,000 of its bonds
at 102 plus accrued interest. Prepare the two journal entries to
record the retirement and show your computations. Do not use cents
- round to nearest dollar.
On December 31, 2015, Jenna Corp issued $1,000,000, 8%, 5-year bonds. Interest is payable semi-annually on...
On December 31, 2015, Jenna Corp issued $1,000,000, 8%, 5-year
bonds. Interest is payable semi-annually on June 30 and December
31. The corporation uses the effective interest method of
amortizing bond premium or discount.
Required
a. Using the present value tables, estimate the issue price of
the bonds under the following three assumptions:
i. Market Rate is 8%
ii. Market Rate is 6%
iii. Market Rate is 10%
b. Prepare the journal entries for each of the assumptions
On January 2, 2015, L Corporation issued $2,050,000 of 10% bonds at 96 due December 31,...
On January 2, 2015, L Corporation issued $2,050,000 of 10% bonds
at 96 due December 31, 2024. Interest on the bonds is payable
annually each December 31. The discount on the bonds is also being
amortized on a straight-line basis over the 10 years.
(Straight-line is not materially different in effect from the
preferable “interest method.”)
The bonds are callable at 101 (i.e., at 101% of face amount), and
on January 2, 2020, L Corp. called $1,230,000 face amount of...
On January 2, 2015, Concord Corporation issued $1,300,000 of 10% bonds at 98 due December 31,...
On January 2, 2015, Concord Corporation issued $1,300,000 of 10%
bonds at 98 due December 31, 2024. Interest on the bonds is payable
annually each December 31. The discount on the bonds is also being
amortized on a straight-line basis over the 10 years.
(Straight-line is not materially different in effect from the
preferable “interest method.”)
The bonds are callable at 101 (i.e., at 101% of face amount),
and on January 2, 2020, Concord called $780,000 face amount of the...
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