Smart Workout Fitness Gym has $300,000 of 20-year bonds payable outstanding. These bonds had a discount of $24,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The currentcarrying amount of these bonds payable isA. $276,000.B. $312,000.C. $288,000.D. $300,000. Superb Entertainment Center borrowed money by issuing $3,500,000 of 4% bonds payable at 94.5. Interest is paid semiannually.Requirements1. How much cash did Superb Entertainment Center receive when it issued the bonds payable?2. How much must Superb Entertainment Center pay back at maturity?3. How much cash interest will Superb Entertainment Center pay each six months?Requirement 1. How much cash did Superb Entertainment Center receive when it issued the bonds payable?Amount of cash Superb Entertainment Center received when the bonds payable were issued =...

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Answered: Smart Workout Fitness Gym has $300,000…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 6EA: Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received...

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Similar questions

Irving Inc. sold bonds with a $50,000, 10% interest, and 10-year term at $52,000. What is the total amount of interest expense over the life of the bonds?
Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Prepare a table to amortize the premium of the bonds. Assume that the bonds were issued for $421,844.
Oak Branch Inc. issued $700,000 of 5%, 10-year bonds when the market rate was 4%. They received $757,243. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds.
Nicholas Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a discount of $56,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is $672,000. $644,000. $700,000. $728,000.
Superior drive ins Ltd borrowed money by issuing $5500,000 of 6% bonds payable at 93.5 on July 1,2018. The bonds are 10 year bonds and pay interest of each January 1 and July 1. 1. How much cash did superior receive when it issued the bonds payable? Journalize transaction Superior received $5,142,500 when the bonds payable were issued JOURNALIZE RHE ISSUANXE OF BONDS PAYABLE RECORD DEBIRS FIRST THEN CREDITS EXCLUDE EDPLANATKONS FOR ANY JOURNAL ENTRIES
Alan Smith Fitness gym has 200,000 of 20 year bonds payable outstanding. These bonds had a discount of 18000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is?
On January 2, Year 1, Kampai Sushi Bar sold $800,000 of bonds for $785,000. The bonds will mature in 10 years and pay interest annually on December 31. The company properly recorded the payment of interest and the amortization of the discount using the effective interest method. What will be the carrying value of the bonds at the end of Year 1? a.$800,000 b.less than $785,000 c.$785,000 d.greater than $785,000, but less than $800,000
Nicholas Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a discount of $56,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is a. $672,000. b. $644,000. c. $700,000. c. $700,000.
Superior Drive ins Ltd borrowed money by issuing $5,500,000 of 6% bonds payable at 93.5 on July 1,2018. The bonds are 10 year bonds and pay interest each January 1 and July 1. Superior received $5,142,5000 when the bonds payable were issued. Journalizing- July 1 Cash. 5142500 (debit) Discounts on bonds payable 357,500 (debit) Bonds payable. 5,500,000(credit) HOW MUCH MUST SUPERIOR PAY BACK AT MATURITY? WHEN IS THE MATURITY DATE?
Wildhorse Company purchased bonds with a face amount of $1225000 between interest payment dates. Wildhorse purchased the bonds at 101, paid brokerage costs of $15900, and paid accrued interest for three months of $25900. The amount to record as the cost of this long-term investment in bonds is $1253150. $1237250. $1225000. $1279050.
Hermosa Vista Company issued $180,000 5-year, 6.00% bonds and received $183,843 in cash. The market rate of interest when the bonds were issued was 5.50%. What is the amount of interest expense to be recorded for the first annual interest period if the company uses simplified effective-interest amortization? Multiple Choice $9,900.00 $10,111.37 $10,800.00 $11,030.58
A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000 at issuance, which was 5 years ago. If the company uses the straight line amortization method. The current carrying amount of these bonds payable will be?

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