97.On January? 1, 2018, Waller Sales issued? $30,000 in bonds for? $23,300. These are? eight-year bonds with a stated rate of? 11%, and pay semiannual interest. Waller Sales uses the? straight-line method to amortize the bond discount. After the second interest payment on December? 31, 2018, what is the bond carrying?amount? (Round your intermediate answers to the nearest? cent, and your final answer to the nearest?dollar.) A.$24,138 B.?$30,000 C.?$23,719 D.$23,300 99.Irrespective of the original? profit-and-loss-sharing ratio, the bonus received by existing partners—by admitting a new partner—will be allocated equally True or false
ans 97 | |||
Par value of bonds | $30,000 | ||
Less: Issue price of bonds | $23,300 | ||
Discount on Bonds payable | $6,700 | ||
No. of period | 16 | ||
Amortization per period | $418.75 | ||
Till Dec 31 2018 discount amortized is | |||
418.75*2 | $838 | ||
Carrying value | |||
23300+838 | 24138 | ||
Option A $24138 is correct option | |||
ans 99 | |||
FALSE | |||
No the bonus is not allocated equally among the | |||
existing partner, it is allocated in profit and loss sharing ratio | |||
or as per the terms in the agreement. |
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