ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 16

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