User Account

All Pages

What is the gain or loss on redemption

Assignment Help Accounting Basics
Reference no: EM132604245

Questions -

Q1. A bond with a face value of $300,000 is redeemed at 103 when the amortized cost ( carrying value ) of the bond is $315,000. The journal entry to record the redemption would include:

A) A loss on bond redemption of $6,000

B) A gain on bond redemption of $6,000

C) A gain on bond redemption of $9,000

D) A loss on bond redemption of $9,000

Q2. A corporation has Bonds Payable with a face value of $1,000,000 and an amortized cost (carrying value) of $985,000. If the corporation redeems the bonds at 97.5, what is the gain or loss on redemption?

A) $10,000 loss

B) $10,000 gain

C) $25,000 loss

D) $25,000 gain

Reference no: EM132604245

Questions Cloud

What is the net cash inflow from operating activities : What is the net cash inflow from operating activities? Profit from ordinary activities before income tax expense, Income tax expense
What is total shareholders equity : What is total shareholders' equity based on the following account balances - Common Shares $450,000 and $2.25 Preferred Shares 90,000
Explain and backup your responses with facts and examples : Briefly respond to all the following questions. Make sure to explain and backup your responses with facts and examples. This assignment should be in APA format.
Determine how transaction appear in financial statements : Find How transaction will appear in the financial statements? Totally 1 million shares were issued and subscribed fully. Entire amount is collected.
What is the gain or loss on redemption : An amortized cost (carrying value) of $985,000. If the corporation redeems the bonds at 97.5, what is the gain or loss on redemption
Interacted with child with disability : Describe a time when you or someone you know interacted with a child with a disability.
Describe threat modeling technique which could have assisted : Describe threat modeling techniques which could have assisted in the mitigation of breach. How can the organization be better postured for future attacks?
What the revenue that would be recorded by onetel co : What the revenue that would be recorded by OneTel Co at the commencement of the agreement is? OneTel Co provides a bundled-service package
Describe how carbon is cycles in the environment : Describe how carbon is cycles in the environment

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd