A company has an investment in 7% bonds with a par value of $180,000 that pays interest on October 1 and April 1. The amount of Interest accrued on December 31 (the company's year-end) would be: Multiple Choice O $2,100, $3,150. $1,050. $6,300. $12,600.
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- The following investment account was taken from the general ledger of One Dream Investment Company: Debt Investments - Fulfilled Dream 6% bonds (2,000,000 face value, due December 31, 2027) Date PR Debit Credit Balance January2, 2022 VR VR P1,812,300 P1,812,300 June 30, 2022 CRJ 60,000 1,752,300 Dec. 31, 2022 CRJ 60,000 1,692,300 Dec. 31, 2022 195,000 1,497,300 In the course of your examination, you obtained the following information: Interest checks were received on June 30 and December 31 and were credited to the investment account. One dream sold P200,000 of its investment on December 31, 2022 for P195,000. Effective interest rate on this investment, as computed by your audit staff, is 8%. (4% - semi annual) One Dream included this investment in a portfolio that is held to collect and for sale. The fair value at December 31, 2022 and 2023 is 97.5 and 105, respectively. How much is the gain or…If $1,012,000 of 12% bonds are issued at 102 1/2, the amount of cash received from the sale is Oa. $1,037,300 O b. $1,012,000 O c. $759,000 O d. $1,133,440If $800,000 of 11% bonds are issued at 102 3/4, the amount of cash received from the sale is O a. $800,000 O b. $888,000 Oc. $822,000 O d. $600,000
- BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. 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 and enter 0 for the…Your company sells $41,000 of one-year, 12% bonds for an issue price of $39,500. The journal entry to record this transaction will include a credit to Bonds Payable in the amount of: Multiple Choice $39,500. $41,000. $44,420. $45,920.Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
- Martin Company issues $2,000,000, 6%, 5-year bonds on lanuary 1, Year 4. The bonds pay interest semiannually on June 30 and December 31. The market yleld for bonds of similar risk and maturity is 5% What is the total amount of interest Martin will pay bondholders if the bondholders hold the bonds until maturity? Select one O a $120,000 Ob $300,000 Oc $600,000 Od $500,000 O e None of these choices. Of. $100,000Wildhorse Ltd. issued a $1,159,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Wildhorse followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ORDINARY ANNUITY OF 1. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to O decimal places e.g. 58,971.) Proceeds from sale of bond on bond Date $ $ Prepare the journal entries for above transactions. (Round answers to O decimal places, e.g. 5,275. 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 and enter O…- cdn.student.uae.examus.net/?rk ACC 101 FEX_2021_2_Male A company issues 9%, 20-year bonds with a par value of SR750,000. The current market rate is 9%. The amount of interest owed to the bondholders for each semiannual interest payment is. 23 -34 18 abe18ce3: 67,500 a. 33,750 b. C. 750,000 95abe18ce33 d. 95abe18ce 33 95abe18ce 33 95abe18ce 95abe18ce33 95abe18ce33 95abe18ce33 MacBook Pro F3 F4 13 F5 E 5 F7 6 & DII R 7 V PD T. Y **** *** **** II
- On January 1, the Ryan Company issued $400,000 of 6%, 6-year bonds when the market rate of interest was 8%. The bonds pay interest semiannually on June 30 and December 31. How much are the proceeds that Ryan will receive from the bond issue date? Select one: A. $360,032 B. $399,800 C. $362,460 D. $280,400 *if there is excel function/shortcut show itOn 1 may 20x3, Amazon Limited purchased $5,000,000 of price Limited 6.3% bonds to be held to maturity. The bonds pay semiannual interest each 1 May and 1 November. The market interest rate was 8% on the date of purchase. The bonds mature on 1 November 20x7. Required Calculate the price paid by Amazon Limited Construct a table that shows interest revenue reported by Amazon, and the carrying value of the investment, for each interest period to maturity. Use the effective interest method. Give entries for 20x3 and 20x4 for Amazon Limited, including adjusting entries at the year end, which is December 31.A company issues 8%, 20-year bonds with a par value of $500,000. The current market rate for the bonds is 8%. The amount of interest owed to the bondholders for each semiannual interest payment is a. $40,000. c. $20,000. e. $400,000. b. $0. d. $800,000.
