ACC 304 All Assignments ACC 304 All Assignments | Page 11

The entry to record the issuance of the bonds would include a credit of
8) Farmer Company issues $25,000,000 of 10-year, 9% bonds on
March 1, 2014 at 97 plus accrued interest. The bonds are dated January
1, 2014, and pay interest on June 30 and December 31. What is the
total cash received on the issue date?
9) On its December 31, 2014 balance sheet, Emig Corp. reported
bonds payable of $3,000,000 and related unamortized bond issue costs
of $160,000. The bonds had been issued at par. On January 2, 2015,
Emig retired $1,500,000 of the outstanding bonds at par plus a call
premium of $35,000. What amount should Emig report in its 2015
income statement as loss on extinguishment of debt (ignore taxes)?
10) Feller Company issues $15,000,000 of 10-year, 9% bonds on March
1, 2014 at 97 plus accrued interest. The bonds are dated January 1,
2014, and pay interest on June 30 and December 31. What is the total
cash received on the issue date?