Reference no: EM132960320
Tango Company issued a three-year bond dated March 1, 2020 with a face value of P2,000,000. These bonds have a coupon rate of 12% payable semi-annually every March 1 and September 1. The prevailing market rate of interest on the date the bonds were issued was at 10%. Tango Company as planned, was able to sell all of its bonds on March 1, 2020 at the prevailing market rate of interest. The entries prepared by the company were: 3/1: Debit to Cash and credit to Bonds Payable for the total proceeds from the issuance of the bonds; 9/1 Debit to Interest expense and credit to Cash at P50,000. No amortization has been made per books nor were accruals at year-end.
Required:
Problem 1. Proceeds from bond issuance on March 1, 2020.
Problem 2. Interest expense to be reported for the year ended December 31, 2020.
Problem 3. Carrying value of the bonds payable to be reported as of December 31, 2020.
Problem 4. Assuming all the bonds were reacquired on April 30, 2021, for P2,100,000, what is the gain or loss on the early retirement of the bonds.
|
Make a three-column comparative income statement
: Prepare a three-column comparative income statement that reports the Annual income without the special order and Annual income from the special order.
|
|
Analise the importance of employee relations
: Analise the importance of employee relations in respect to influencing HRM decision making in Hampton by Hilton London Park Royal. Identify the key elements of
|
|
What is the equity component of the compound instrument
: Whiskey Corp. issued 1,000 of its January 1, 2015,What is the credit to share premium assuming that 80% of the warrants issued with bonds were exercised in 2022
|
|
How much is gain to be recognized in the income statement
: When the prevailing quoted value of bonds were at 96, how much is the gain or loss to be recognized in the income statement for the retirement?
|
|
What is the gain or loss on the early retirement of the bond
: Assuming all the bonds were reacquired on April 30, 2021, for P2,100,000, what is the gain or loss on the early retirement of the bonds.
|
|
Make budgeted balance sheet as of march for stillwater video
: Prepare a budgeted balance sheet as of March 31.? Stillwater Video Company, Inc. produces and markets two popular video games.
|
|
What is the present value of the project revenues
: If the current value of the installments is equal to 3.5 for 8 years and 6.7 for 16 years, what is the present value of the project revenues
|
|
Determine the average inventory held during the year
: The company is using Economic Order Quantity model in placing the orders. Determine the average inventory held during the year
|
|
What depreciation method being used for financial reporting
: What depreciation method(s) is (are) being used for financial reporting purposes? How much total depreciation and amortization expense did the firm report?
|