The bond premium was amortized on straight-line basis

Assignment Help Financial Accounting
Reference no: EM13912010

On January 1, 2011, F Corp. issued 2,800 of its 9%, $1,000 bonds for $2,884,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semi annually on July 1 and January 1. On July 1, 2016, F called all of the bonds and retired them. The bond premium was amortized on a straight-line basis. Before income taxes, F Corp.'s gain or loss in 2016 on this early extinguishment of debt was:

Reference no: EM13912010

Questions Cloud

Cash receipts versus revenues : Expenses totaled $624,000, and accrual basis net income was $168,000.
Calculate firm ks net income average total assets : Calculate Firm K's net income, average total assets, and return on investment (ROI).
Assume straight-line amortization : Cramer Company sold five-year, 6% bonds on October 1, 2016. The face amount of the bonds was $180,000, while the issue price was $190,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much in..
Logistics systems deal with topic : Logistics systems deal with topics such as investment management, financing operations, raising capital, risk analysis, and credit approval.TrueFalse
The bond premium was amortized on straight-line basis : On January 1, 2011, F Corp. issued 2,800 of its 9%, $1,000 bonds for $2,884,000. These bonds were to mature on January 1, 2021, but were callable at 101 any time after December 31, 2014. Interest was payable semi annually on July 1 and January 1. On ..
Recognize as gain on redemption of bonds before income taxes : On June 30, 2016, K Co. had outstanding 8%, $17,000,000 face value bonds maturing on June 30, 2021. Interest is payable semi annually every June 30 and December 31. what amount should K Co. recognize as gain on redemption of bonds before income taxes..
Explain why the grade point average is a weighted mean : Consider calculating a student's grade point average using a scale where 4.0 represents an A and 0.0 represents an F. Explain why the grade point average is a weighted mean. What are the xi values? What are the weights?
Notes payable interest accrual and payment : Notes payable interest accrual and payment. Proco had an account payable of $84,000 due to Shirmoo, Inc., one of its suppliers.
Bond issue proceeds increase shareholders equity : On March 1, 2016, E Corp. issued $1,000,000 of 8% nonconvertible bonds at 103, due on February 28, 2026. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $80, one share of Evan's $25 pa..

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the firm turnover and average total assets

Firm E has net income of $150,000, sales of $2,500,000, and ROI of 15%. Calculate the firm's turnover and average total assets. (Omit the "tiny_mce_markerquot; sign in your response.) Turnover $ Average total assets.

  What will be the adjusting entry to accrue wages

What will be the adjusting entry to accrue wages expense at the end of January?

  Which investment should be accounted for using equity method

Which investment should be accounted for using the adjusted to market method and which investment should be accounted for using the equity method?

  Beginning inventory in mixing processing center consisted

Jolly Company uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,500 units, 75% complete with respect to conversion costs. Ending work in process inventory consisted of 3,500 units, ..

  Prepare incremental analysis

Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manufacture 20,000 Tri-Robos is as follows.

  Determining value of ending inventory using product costing

determining value of ending inventory using product costing by split off method.oregon lumber processes timber into

  Compute depreciation for each year-depreciation method

A machine costing $215,600 with a four-year life and an estimated $18,000 salvage value is installed in Luther Company’s factory on January 1. The factory manager estimates the machine will produce 494,000 units of product during its life. Compute de..

  Make a choice we are faced with an opportunity cost

Every time we have to make a choice we are faced with an opportunity cost. Using an example in your professional life, identify a situation where you were presented with a choice, the opportunity cost of the choice you made, and the process you..

  Adjusted prior to the preparation of the statements

Why do you think the loan officer suspected that the accounts had not been adjusted prior to the preparation of the statements and indicate possible accounts that might need to be adjusted before an accrete set of financial statements could be prep..

  True with regard to budgeting vs long-range planning

Which of the following is true with regard to budgeting vs. long-range planning? The potential benefit that may be obtained by following an alternative course of action is termed a(n): An order at a special price that is accepted will increase income..

  Calculate dahls 20x6 consolidated net income

Calculate Dahls 20X6 consolidated net income and identify the amount attributable to Dahl's shareholders and to the non-controlling interest. Be sure to show all your calculations. You are not required to prepare a consolidated income statement.

  Compute the walmarts value-to-book ratio

Computing Walmart's Value-to-Book Ratio Using the Value-to-Book Valuation Approach. Use the CAPM to compute the required rate of return on common equity capital for Walmart.

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!

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