Question

1. At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000...

1.

  1. At December 31, 2022, the following balances existed for MICPA Corporation:

Bonds Payable (6%)

$600,000

Discount on Bonds Payable

50,000

The bonds mature on 12/31/28. Straight-line amortization is used.

If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment?

Answer

$_______________

2.

On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with two detachable stock warrants. Shortly after issuance, the bonds were selling at 96, and the warrants were selling for $50 each.

Instructions:

Prepare the entry to record the issuance of the bonds and warrant

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment? Answer $_______________
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount...
At December 31, 2022, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment? Answer $_______________ 2. On January 1, 2020, Scottsdale Company issued its 12% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued...
At December 31, 2020, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Premium...
At December 31, 2020, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Premium on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 104 on January 1, 2025, what is the gain or loss on early extinguishment? (Please show computations and explanation)
On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued...
On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with two detachable stock warrants. Shortly after issuance, the bonds were selling at 96, and the warrants were selling for $50 each. Instructions: Prepare the entry to record the issuance of the bonds and warrants.
At December 31, 2014 the following balances existed on the books of Rentro Corporation: Bonds payable...
At December 31, 2014 the following balances existed on the books of Rentro Corporation: Bonds payable $1,380,000; interest payable $37,000. If the bonds are retired on January 1, 2015, for $1,530,000, what will Rentro report as a loss on extinguishment? Select one: a. $187,000 b. $113,000 c. $150,000 d. $37,000 Clear my choice
1.   On August 1, 2022, United Corporation issued $6 million of 8% convertible bonds at 102....
1.   On August 1, 2022, United Corporation issued $6 million of 8% convertible bonds at 102. The bonds mature in 20 years. Each $1,000 bond was issued with 10 detachable stock warrants, each of which entitled the bondholder to purchase, for $30, one share of United no par common stock. On August 1, 2022, the market value per share for United stock was $33 and the market value of each warrant was $3. In March 2028, when United common stock...
At December 31, 2018 the following balances existed on the books of Ian Corporation: Bonds Payable$4,000,000...
At December 31, 2018 the following balances existed on the books of Ian Corporation: Bonds Payable$4,000,000 Premium on Bonds Payable300,000 Unamortized Bond Issue Costs200,000 If the bonds are retired on January 1, 2015, at 100, what will Ian report as a loss or gain on redemption? $500,000 Gain $500,000 Loss $100,000 Gain $100,000 Loss
On September 1, 2017, Stellar Company sold at 104 (plus accrued interest) 4,560 of its 9%,...
On September 1, 2017, Stellar Company sold at 104 (plus accrued interest) 4,560 of its 9%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $17 per share. Shortly after issuance, the warrants were quoted on the market for $2 each. No fair value can be determined for the Stellar Company bonds. Interest is payable on December 1...
On December 31, 2020, the Company issued $600,000 of 10 year, 6% bonds payable for $624,000,...
On December 31, 2020, the Company issued $600,000 of 10 year, 6% bonds payable for $624,000, yielding an effective interest rate of 5.75%. Interest is payable annually on December 31st of each year. Show the entry for the issuance of the bonds, and the annual payment of interest on December 21, 2021.
On September 1, 2017, Riverbed Company sold at 104 (plus accrued interest) 4,920 of its 8%,...
On September 1, 2017, Riverbed Company sold at 104 (plus accrued interest) 4,920 of its 8%, 10-year, $1,000 face value, nonconvertible bonds with detachable stock warrants. Each bond carried two detachable warrants. Each warrant was for one share of common stock at a specified option price of $15 per share. Shortly after issuance, the warrants were quoted on the market for $3 each. No fair value can be determined for the Riverbed Company bonds. Interest is payable on December 1...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT