On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on January 2, 2016. The bonds were issued for P4,695,000 to yield 10%. Interest is payable annually on December 31. Naruto uses the interest method of amortizing bond discount. In its June 30, 2006 balance sheet, what amount should Naruto report as bonds payable?
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- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?On January 1, 2006, Okon Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2016. Okon uses the straight line method of amortizing bon discount. On Okon’s December 31, 2006 balance sheet, how much would be shown as the carrying amount of the bonds payable?
- Terry Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2011 with interest payments on June 30 and December 31. When bonds are issued on November 1, 2011, Terry Company received cash of P5,150,000 ( excluding interest). a. What is the discount or premium from the issuance of the bonds payable? Indicate whethere discount/premium. b. How much is the total interest expense for the whole life of the bond?On January 1, 2006, Naruto Company issued 5,000 of its 9%, P1,000 face value bonds at 95. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2016. Naruto uses the straight line method of amortizing bond discount. On Naruto’s December 31, 2006 balance sheet, how much would be shown as the carrying amount of the bonds payable?help me
- On January 1, 2006, Carrow Company issued its 10% bonds in the face amount of P1,000,000 that mature on January 1, 2016. The bonds were issued for P886,000 to yield 12%, resulting in bond discount of P114,000. Carrow uses the interest method of amortizing bond discount. Interest is payable July and January 1. For the year ended December 31, 2006, Carrow should report bond interest expense atOn January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which mature on January 1, 2016. The bonds were issued for P5,675,000 to yield 8%, resulting in bond premium of P675,000. Naruto uses the interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2006, Naruto’s adjusted unamortized bond premium should beOn January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on January 1, 2016. The bonds were issued for P3,756,000 to yield 10%, resulting in bond discount of P244,000. Naruto uses the interest method of amortizing bond discount. Interest is payable annually on December 31. At December 31, 2006, Naruto’s unamortized bond discount should be
- Jacobs Company issued bonds with a $168,000 face value on January 1, Year 1. The bonds were issued at 105 and carried a 5-year term to maturity. They had a 9% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation? Multiple Choice Decreases both assets and stockholders' equity by $13,440 Decreases stockholders' equity by $13,440, decreases liabilities $1,680, and decreases assets by $15,120 Increases liabilities by $1,680, decreases assets by $13,440, and decreases stockholders' equity by $15,120 Decreases both assets and stockholders' equity by $15,120On January 2, 2001, Northern Co. issued 9% bonds in the amount of ₱500,000, which mature on January 2, 2011. The bonds were issued for ₱469,500 to yield 10% Interest is payable annually on December 31. West uses the effective interest method of amortizing bond discount. In its June 30, 2001 balance sheet, what amount should Northern report as bonds payable?Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing $ ? c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing $ ?