Question: Lizard brand issues a $200,000 10 year bond with a stated interest rate of 8% while the market interest rate is 7% on January 1,

Lizard brand issues a $200,000 10 year bond with a stated interest rate of 8% while the market interest rate is 7% on January 1, 2020. On January 1, 2020 Lizard Brand receives cash for the issue price of $214,212 for the bond and will have a balance of $_____________ .

A. $14,212 in the Discount on Bonds Payable account.

B. $16,000 in the Discount on Bonds Payable account.

C. 14,212 in the Premium on Bonds Payable account.

D. 16,000 in the Premium on Bonds Payable account.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The above photos are the scenario for the required that I'll post below...It's Financial accounting 1 so can I please be assisted as soon as possible. Don't wait to send the whole solutions you can...

You can answer the required and send them each when you done need em' as soon as possible The financial statements for the 2019 financial year have been prepared and have been audited as correct. The...

I need help with the last 5 questions if possible. Thanks. ACCT 311 6980 - Quiz 1 Part 1, 16 questions, 5 points each 1. Rabb Co. records its purchases at gross amounts but wishes to change to...

LaTanya Corporation is planning to issue $110, 000, ten-year, 9percent bonds. Interest is payable each December 31. All of the bonds will be sold on January 1, 2014. (FV of $1, PV of $1. FVA of $1....

\fThe following events occurred in 2020: 1. Issued a $100,000 face-value bond on January 1, 2020 at 98. The bond had a stated interest rate of 8%, an effective interest rate of 8.508%, and a 5 year...

Match the accounting transaction with the right journal. 1. On the first day of the fiscal year, a company issues a $700,000, 9%, 10 year bond that pays semi-annual interest. receiving cash of...

Part I: Twilight Corp. A company listed on Toronto Stock Exchange, desired to raise cash to fund its expansion by issuing long-term bonds. On November 1, 2019, Twilight sold $500,000 in long-term...

Shell Co issues a to year $100.000 bond with a stated interest rate of 6 and market interest rate of 5%. The proper journal entry was recorded by Shell Co on January 1, 2020 at Issuance, which...

p can you please follow the 2nd picture instructions and answer the questions? and please make sure don't screenshot the answers present value table BONDS 1. Use the present value tables to calculate...

On January 1, 2020, Everly Bottle Company sold $3,000,000 in long-term bonds. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest...

Dry air whose molar analysis is 78.1 percent N2, 20.9 percent O2, and 1 percent Ar flows over a water body until it is saturated. If the pressure and temperature of air remain constant at 1 atm and...

Classify the given differential equations according to their order, degree, type, IV, DV and linearity. (Question 9) Order Degree Type IV DV Linearity

Patrick invests 1 5 % of his gross income into his RRSP and $ 5 , 0 0 0 annually into his TFSA. His income does not change for 1 5 years and his returns are consistent at 1 0 % compounded weekly....

Answer the questions Outliers In many statistical analysis programs, data values that are considerably outside the range of the majority of the values are simply dropped from consideration. using...