Question: Assume that Remington Inc sold bonds with a face value
Assume that Remington Inc. sold bonds with a face value of $100,000 for $104,000. Was the market interest rate equal to, less than, or greater than the bonds’ contractual interest rate? Explain.
Answer to relevant QuestionsRattigan Corporation is considering issuing a convertible bond. What is a convertible bond? Discuss the advantages of a convertible bond from the standpoint of (a) The bondholders (b) The issuing corporation.Kelli Deane is discussing the advantages of the effective-interest method of bond amortization with her accounting staff. What do you think Kelli is saying?The balance sheet for Miley Consulting reports the following information on July 1, 2014..:.Miley decides to redeem these bonds at 101 after paying semiannual interest. Prepare the journal entry to record the redemption on ...Prater Corporation issued $400,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $390,000, the company redeemed the bonds at 99. Prepare the entry to record the redemption of the ...Whitmore Company issued $500,000 of 5-year, 8% bonds at 97 on January 1, 2014. The bonds pay interest twice a year.Instructions(a) (1) Prepare the journal entry to record the issuance of the bonds. (2) Compute the total cost ...
Post your question