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##### I have been trying to study for test of 150 but th...

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I have been trying to study for test of 150 but these are the one were I'm having trouble. The calculation of bonds, I'm struggling a little bit to complete these questions. 1. Bonds with the following characteristics are retired on January 1, 2005, at 104: Issue date: January 1, 2004; maturity date: January 1, 2009; face value: \$300,000; bond issue costs: \$5,000, amortized semiannually using the straight-line method of amortization. The unamortized bond discount is \$8,500 as of January 1, 2005. What is the amount of the gain or loss on the bond retirement? a. Gain of \$8,500 b. Loss of \$12,500 c. Gain of \$12,500 d. Loss of \$24,500 2.Assume that a bond is issued with the following characteristics:Date of bonds: January 1, 2005; maturity date: January 1, 2010; face value: \$200,000; Face interest rate: 10 percent paid semiannually (5 percent per period); market interest rate: 12 percent (6 percent per semiannual period); issue price: \$185,280; bond discount is amortized using the effective interest method of amortization. What is the amount of bond discount amortization for the June 30, 2005, adjusting entry? a. \$100 b.\$500 c.\$1,000 d.\$5,000 3.Assume that on January 1, 2005, Weber Company issues bonds with a face value of \$100,000 that pay 10 percent interest, semiannually (5 percent per period) and mature in five years. Assume that the market interest rate at the date of issuance is 8 percent (4 percent per semiannual period). What is the issue price of the bond? a.\$100,000. b.\$108,111. c.\$121,880. d.\$126,948. 4. Sasha Co. shipped 100,000 rebate coupons in products sold during 2005. The coupons are redeemable for \$15 each. Each product is sold for \$200 and has a cost of \$100. Sasha anticipates that 70 percent of the rebate coupons will be redeemed. The coupons expire on December 31, 2006. There were 40,000 coupons redeemed in 2005.The journal entry to accrue a liability for coupons would include a a. Debit to Estimated Liability for Coupons. b.Debit to Expense for Coupons to Be Redeemed. c.Debit to Inventory. d.Credit to Sales.,Dear professor, My due date is today 08-05 before 8:00 pm ET. Thank you

Paper#12824 | Written in 18-Jul-2015

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