Winrow Company received proceeds of 565500 on 10 year 8 bonds issued on January

Winrow company received proceeds of 565500 on 10 year

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185.Winrow Company received proceeds of $565,500 on 10-year, 8% bonds issued onJanuary 1, 2013. The bonds had a face value of $600,000, pay interest annually onDecember 31st, and have a call price of 101. Winrow uses the straight-line method ofamortization. Winrow Company decided to redeem the bonds on January 1, 2015. Whatamount of gain or loss would Winrow report on its 2015 income statement?a.$27,600 gainb.$33,600 gainc.$33,600 lossd.$27,600 lossAns: C, LO: 6, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:Problem Solving, IMA: ReportingSolution: ($600,000 $565,500) 10 $3,450; ($600,000 1.01) [$565,500 + ($3,450
2)] $33,600186.Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued onJanuary 1, 2013. The bonds had a face value of $400,000, pay interest annually onDecember 31st, and have a call price of 102. Sparks uses the straight-line method ofamortization. What is the amount of interest Sparks must pay the bondholders in 2013?
FOR INSTRUCTOR USE ONLY10-36
Reporting and Analyzing Liabilities*187.Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued onJanuary 1, 2013. The bonds had a face value of $400,000, pay interest annually onDecember 31st, and have a call price of 102. Sparks uses the straight-line method ofamortization. What is the amount of interest expense Sparks will show with relation tothese bonds for the year ended December 31, 2014?
*188.Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued onJanuary 1, 2013. The bonds had a face value of $400,000, pay interest annually onDecember 31st, and have a call price of 102. Sparks uses the straight-line method ofamortization. What is the carrying value of the bonds on January 1, 2015?
189.Sparks Company received proceeds of $423,000 on 10-year, 8% bonds issued onJanuary 1, 2013. The bonds had a face value of $400,000, pay interest annually onDecember 31st, and have a call price of 102. Sparks uses the straight-line method ofamortization. Sparks Company decided to redeem the bonds on January 1, 2015. Whatamount of gain or loss would Sparks report on their 2015 income statement?a.$18,400 gainb.$10,400 gainc.$10,400 lossd.$18,400 lossAns: B, LO: 6, Bloom: AP, Difficulty: Medium, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC:Problem Solving, IMA: ReportingSolution: ($423,000 $400,000) 10 $2,300; ($400,000 1.02) [$423,000 ($2,300
2)] $10,400

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