Gacia Company issued $600,000 of 8%, 5-year bonds at 106, with interest paid annually. Assuming straight-line amortization,
Question:
Gacia Company issued $600,000 of 8%, 5-year bonds at 106, with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after one year?
A) $636,000
B) $632,400
C) $628,800
D) $639,600
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
Computation of the Carrying value of the bonds ...View the full answer
Answered By
Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 978-1118875056
12th edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
Question Posted:
Students also viewed these Corporate Finance questions
-
What is the carrying value of a bond?
-
What is the carrying value of a bond payable?
-
What is the carrying value of a long-lived asset?
-
In Fig. P2.72 gate AB is circular. Find the moment of the hydrostatic force on this gate about axis A. Neglect atmospheric pressure.
-
The audit committee is required to evaluate the independence of both the internal and external audit functions. Required a. What factors would you suggest an audit committee look at in evaluating the...
-
How does technology influence the ways in which individuals and groups organize, communicate, and mobilize for social change ?
-
What would it mean if a difference were statistically significant but the effect size were not meaningful?
-
1. Identify possible actors and use cases involved in ATAs bus operations. 2. Create a use case diagram for the bus system. 3. Create a sequence diagram for the use case you selected. 4. Create a...
-
In 2021 John and Larry filed a joint tax return. They are cash-basis taxpayers. They paid the following. They itemize their deductions. FICA taxes on their wages $1,000 Property tax on home in Los...
-
Note 3 describes Cisco's 2013 acquisition of NDS Group Limited (NDS") for cash totaling $5,005 million and reports the allocation of the purchase price to specific asset and liability accounts. i....
-
On January 1, Patterson Inc. issued $5,000,000,9% bonds for $4,695,000.The market rate of interest for these bonds is 10%.Interest is payable annually on December 31.Patterson uses the...
-
Why do bond prices go down when interest rates go up?
-
Which graph in Fig. P29.74 best represents the time t dependence of the current i induced in the brain tissue, assuming that this tissue can be modeled as a resistive circuit? (The units of i are...
-
Al Harrington's Wacky Waving Inflatable Arm Flailing Tubeman Warehouse and Emporium recorded the following information from its lunch period: # of Customers 100 # of Servers 4 # of Seats 50 Total...
-
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Sales...
-
Global Enterprises has identified three cost pools and three corresponding cost drivers to allocate overhead costs. The following estimates are provided for the coming year: Cost Pool Overhead Costs...
-
We can compare supplier's performance based on the total cost of ownership. What is encompassed by total cost of ownership? How does a company understand all of the costs? How might higher...
-
Apply the MacDonald methodology to solve the case You are a junior auditor at Mallett&Stevens Audit and have assigned to the audit team for one of your firm's largest audit client: COOL SODA Inc...
-
Angela filed her 2017 income tax return on February 14, 2018, showing gross income of \(\$ 20,000\). She mistakenly deducted a \(\$ 6,000\) casualty loss that in good faith she considered deductible....
-
The May 2014 revenue and cost information for Houston Outfitters, Inc. follow: Sales Revenue (at standard).............. $ 540,000 Cost of Goods Sold (at standard) ..........341,000 Direct Materials...
-
``The Geometry of the Arms Race,'' by Steven J. Brams,Morton . Davis, and Philip Staffin, Jr., UMAP 311. This module analyzes the possibilities of both parties disarming by introducing elementary...
-
The information presented below is for Steff en Sweet Shop. a. Interest of $12,600 is payable for September 2012 through December 2012 on a 7%, $540,000 loan and has not been recorded. b. Rent of...
-
An analysis of cash records and account balances of Wells, Inc., for 2012 is as follows: Required: Determine the amounts that should be included on the 2012 income statement for (1) Wages expense,...
-
An analysis of cash records and account balances of High-Rise Properties, Inc., for 2012 is as follows: Required: Determine the amounts that should be included on the 2012 income statement for (1)...
-
Diaz Company issued $91,000 face value of bonds on January 1, Year 1. The bonds had a 9 percent stated rate of interest and a ten- year term. Interest is paid in cash annually, beginning December 31,...
-
Manvir had to make payments of $1,125 every 6 months to settle a $22,000 loan that he received at 4.52% compounded semi-annually. a. How long did it take to settle the loan?
-
If I invest a single amount of $14,000 in an account earning 8% p.a. compounding quarterly for 5 years, how much interest will I have earned in those 5 years?
Study smarter with the SolutionInn App