Manji Several years ago. Cyclop Company issued bonds with a face value of $1,000,000 for $1,115,000. As a result of declining interest rates,Assessment Tool iFrame ecided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of$1,028,000.Required:Record the retirement of the bonds, using a premium account.Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.View transaction listJournal entry worksheet1Record the retirement of the bonds, using a premium account.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Bonds payableBond premiumLoss on bond callCash

Analyzing the Bond Retirement ScenarioThis task describes a scenario where Cyclop Company issued…

Answered: Several years ago. Cyclop Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,145,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,039,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Required: Record the retirement of the bonds, using a premium account.
Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,070,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,035,000. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) I'm unsure how to calculate loss on bond call. Thanks. Required: Record the retirement of the bonds, using a premium account.
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash (a2) Discount on Bonds Payable Bonds Payable * Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing 177310 Debit 489600 20400 Credit 510000
Several years ago, Cyclop Company issued bonds with a face value of $1,000,000 for $1,045,000. As a result of declining interest rates, the company has decided to call the bonds at a call premium of 5 percent over par. The bonds have a current book value of $1,010,000. Record the retirement of the bonds, using a premium account.
Pizza Pier retires its 7% bonds for $70,800 before their scheduled maturity. At the time, the bonds have a face value of $72,800 carrying value of $74,965.Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Record the early retirement of the bonds. Transaction General Journal Debit Credit 1
Premium Pizza retires its 5% bonds for $64,000 before their scheduled maturity. At the time, the bonds have a face amount of $61,800 and a carrying value of $66,380. Record the early retirement of the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.). How do you figure out the "gain"?
The balance sheet for Pina Colada Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable Less: Discount on bonds payable $1,280,000 51,200 $1,228,800 Pina Colada decides to redeem these bonds at 105 after paying annual interest. Prepare the journal entry to record the redemption on July 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest annually. (a1) Your answer is correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Cash Discount on Bonds Payable Bonds Payable Your answer is incorrect. Compute the total cost of borrowing for these bonds. Total cost of borrowing eTextbook and Media List of Accounts - Your answer is partially correct. Account Titles and Explanation Interest Expense (DZ). Premium on Bonds Payable $ Interest Payable Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 104. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Total cost of borrowing Debit eTextbook and Media $ 489600 Debit 20400 Compute the total cost of borrowing for these bonds, assuming the bonds were…
Wildhorse Corporation issued $410,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $379,250, the company redeemed the bonds at 94. Prepare the entry to record the redemption of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102.Assuming that no interest is payable, make the entry to record the redemption. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1
A company retired $75 million of its 9% bonds at 102 ($76.5 million) before their scheduled maturity. At the time, the bonds had a remaining discount of $2 million. Prepare the journal entry to record the redemption of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e.. 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) No 1 Event 1 Answer is complete but not entirely correct. General Journal Bonds payable Loss on early extinguishment Discount on bonds payable Cash Debit 75,000,000.0x 3,500,000.0 Credit 2,000,000.0 76,500,000.0
The balance sheet for Ivanhoe Company reports the following information on July 1, 2022. IVANHOE COMPANYBalance Sheet (partial) Long-term liabilities Bonds payable $400,000 Less: Discount on bonds payable 9,000 $391,000 Ivanhoe decides to redeem these bonds at 109 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 1 enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount

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