e entry to record the retirement will include:
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NYK, Inc.retires a $45 million bond issue when the carrying
The entry to record the retirement will include:
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- Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?
- On September 30, Franz Corporation notices a decline in value of its investment in held-to-maturity bonds. On that date, the carrying value of the bonds is 38,500 and the fair value is 22,980. Franz evaluation of this investment reveals that expected credit losses are 10,000. Prepare the journal entry to record the impairment.Chung Inc. issued $50,000 of 3-year bonds on January 1, 2018, with a stated rate of 4% and a market rate of 4%. The bonds paid interest semi-annually on June 30 and Dec. 31. How much money did the company receive when the bonds were issued? The bonds would be quoted at what rate?Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
- Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumEdward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discountNYK, Inc.retires a $45 million bond issue when the carrying value of the bonds is $47 million, but the market value of the bonds is $45 million. The entry to record the retirement will include: Select one: a. A credit of $4 million to Gain on Bond Retirement. b. A debit of $4 million to Loss on Bond Retirement. c. No gain or loss on retirement d. A debit of $2 million to Loss on Bond Retirement e. A credit of $2 million to Gain on Bond Retirement.
- The Titan retires a $24.7 million bond issue when the carrying value of the bonds is $21.9 million, but the market value of the bonds is $28.1 million. The entry to record the retirement will include: Multiple Choice A credit of $6.2 million to a gain account. No gain or loss on retirement. A credit to cash for $21.9 million. A debit of $6.2 million to a loss account.The Titan retires a $25.9 million bond issue when the carrying value of the bonds is $22.6 million, but the market value of the bonds is $29.0 million. The entry to record the retirement will include: Multiple Choice A credit to cash for $22.6 million. No gain or loss on retirement. A debit of $6.4 million to a loss account. A credit of $6.4 million to a gain account.The Titan retires a $24.6 million bond issue when the carrying value of the bonds is $21.2 million, but the market value of the bonds is $27.8 million. The entry to record the retirement will include: Multiple Choice A debit of $6.6 million to a loss account. No gain or loss on retirement. A credit of $6.6 million to a gain account. A credit to cash for $21.2 million.
