ACCT 304 Final: ACCT 304 Chapter 14 Practice
Document Summary
Chapter 14 in-class practice: cox co. issued ,000 of ten-year, 10% bonds that pay interest semiannually. Semiannual adjustment: 1) double the interest periods, 10 years -> 20 interest periods. 2) half the interest rates, stated rate 10% * -> 5% = ,591: benson industries, inc. issued ,000,000 of 8% debentures on january 1, 2017 and received cash totaling ,323,577. The bonds pay interest semiannually on june 30 and december 31. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. ,000,000: sam company had ,000 of 10% bonds with a carrying value of ,000 on. These bonds had been issued to yield 8%. Interest is paid semiannually: calculate the gain or loss on the retirement if these bonds are retired at 107 on 1/1/18. ,000: calculate the gain or loss on the retirement if these bonds are retired at 107 on 7/1/18.
