moose inc acquired 100 900 par value 6% year bonds on their date of moose purchas them at a 101% face value what is their effective vield rate?
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- On April 30, 2015, Company acquired 10%, P100,000 bonds dated January 1, 2021 at 102. If the purchase price excludes interest, how much is the initial carrying amount of the investment? If the purchase price includes interest, how much is the initial carrying amount of the investment?Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?
- Blossom Company has $2080000 of bonds outstanding. The unamortized premium is $30000. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption? $9200 gain $20800 loss $20800 gain $9200 lossHodsonCorp. purchased ten $1,000 8% bonds of Eagle Corporation when the market rate of interestwas 6%. Interest is paid semiannually, and the bonds will mature in four years. Using the PVfunction in Excel®, compute the price Hodson paid (the present value) for the bond investment.On 1 July 2021, Jill Ltd acquired some corporate bonds issued by Soy Ltd • These bonds cost $1 038 870. They had a ‘face value’ of $1 million and offered a coupon rate of 10 per cent paid annually ($100 000 per year, paid on 30 June). The bonds would repay the principal of $1 million on 30 June 2026 • At the time the market only required a rate of return on 9 per cent on such bonds • Jill Ltd operates within a business model where government bonds are held in order to collect contractual cash flows and there is no intention to trade them • Assume that there were no direct costs associated with acquiring the bonds Based on the above information, calculate the amortised cost of the bonds as at30 June 2022, 2023, 2024, 2025 and 2026
- The face value of Ace Hardware Company's outstanding bonds is S400,000 and unamortized premium is $20,000. The company calls 50% of the outstanding bonds at a price of $205,000. What is the gain or loss on retirement of bonds?The face value of Ace Hardware Company's outstanding bonds is $400,000 and unamortized premium is $20,000. The company calls 50% of the outstanding bonds at a price of $205,000. What is the gain or loss on retirement of bonds? a. $5,000 loss b. $25,000 gain c. $5,000 gain d. $25,000 lossCrane Company issued $850000 of 8%, 5-year bonds at 109, which pay interest annually. Assuming straight-line amortization, what is the total interest cost of the bonds? $340000 $187000 $416500 $263500
- On January 1.2018, Ellison Company purchased 12% bonds, having a maturity value of C800,000, for €860,652. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2018, and mature January 1. 2023, with interest receivable December 31 of each year. Cash Interest Premium Carrying Amount Fair Value Date Received Revenue Amortized of Bonds 01/01/2018 860.652 31/12/2018 €96.000 €86.065 € 9,935 850,717 849,000 31/12/2019 96.000 85,072 10,928 839.789 842.152 The journal entry to be recorded 31/12/2018, IncludesOn January 1, 2020, Clown Company acquired P8,000,000 12% bonds to be held as financial assets at amortized cost for P8,400,000 plus transaction cost of P198,400. Interest is payable annually on December 31. The bonds mature on December 31, 2024. The effective interest method of amortization is used. The bonds have a 10% effective yield. Required: Prepare an amortization table. Compute for the following: Carrying value of the bond investment on December 31, 2020 Interest income on December 31, 2021. Assuming all the bond investment was sold at 110 plus accrued interest on July 1, 2023: C.1. Compute for the carrying value on the selling date on July 1, 2023. C.2. Compute for the cash price received. C.3. Compute for the gain or loss on sale of bond investment.On January 1, 2020, Clown Company acquired P8,000,000 12% bonds to be held as financial assets at amortized cost for P8,400,000 plus transaction cost of P198,400. Interest is payable annually on December 31. The bonds mature on December 31, 2024. The effective interest method of amortization is used. The bonds have a 10% effective yield. Required: Prepare an amortization table. Compute for the following: A. Carrying value of the bond investment on December 31, 2020 B. Interest income on December 31, 2021. C. Assuming all the bond investment was sold at 110 plus accrued interest on July 1, 2023: C.1. Compute for the carrying value on the selling date on July 1, 2023. C.2. Compute for the cash price received. C.3. Compute for the gain or loss on sale of bond investment.