Reference no: EM131702170
Q1. On January 1, 2015, Geller Company issued its 8% bonds in the face amount of $3,000,000, which mature on January 1, 2025. The bonds were issued for $3,441,591 to yield 6%. Geller uses the effective-interest method of amortizing bond premium. Interest is payable annually on December 31. At December 31, 2016, the adjusted unamortized bond premium should be
Q2. On July 1, 2016, Scheich Company issued 8% bonds in the face amount of $5,000,000, which mature on July 1, 2022. The bonds were issued for $4,365,416 to yield 11%. Scheich uses the effective-interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2019, the unamortized bond discount should be
Q3. The Whittier Company issues $100,000, 10% bonds at 104 on April 1, 2016. The bonds are dated January 1, 2016 and mature ten years from that date. Straight-line amortization is used. Interest is paid annually each December 31. Compute the bond carrying value as of December 31, 2022.
Q4. At December 31, 2017, the following balances existed for Sweeney Corporation:
Bonds Payable (10%) $1,500,000
Premium on Bonds Payable 40,000
The bonds mature on 12/31/22. Straight-line amortization is used.
If 30% of the bonds are retired at 105 on January 1, 2019, what is the loss on early extinguishment?