Bonds | Accounting homework help



Bangor Company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Bangor uses effective-interest amortization. What amount of interest expense will Bangor record for the June 30 payment?

A.    392,082

B.     196,041

C.     195,000

D.    200,000


On January 1, 2012, Blanco Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Blanco uses the effective-interest method of amortizing bond discount. At December 31, 2012, Blanco should report unamortized bond discount of

A.    274,500

B.     285,500

C.     258,050

D.    255,000





On June 30, 2012, Rosen Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2022. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2012 were $105,000 and $30,000, respectively. On June 30, 2012, Rosen acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?

A.    2,870,000

B.     2,865,000

C.     2,895,000

D.    2,970,000


On January 1, 2012, Gise loaned $90,156 to Carter in exchange for a 3 year, zero-interest-bearing note with a face amount, $120,000. The prevailing rate of interest for a loan of this type is 10%. The adjusting journal entry made by Carter at December 31, 2012 with regard to the note will include

A.    A debt to interest expense for $12,000

B.     A debt to interest expense for $2,985

C.     A credit to interest payable for $6,000

D.    A credit to discount on notes payable for $9,016





Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.