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1. On January 1, 2020, Scottsdale Company issued its 11% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds
1. On January 1, 2020, Scottsdale Company issued its 11% bonds in the face amount of $3,000,000, which mature on January 1, 2030. The bonds were issued for $$3,385,058 to yield 9%. Scottsdale uses the effective interest method of amortising bond premium. Interest is payable annually on December 31. The 12/31/23 Premium on Bond Payable balance is: Answer 2. On April 1, 2020, Sydney Company issued 300 $1,000 bonds at 98. Each bond was issued with three detachable stock warrants. Shortly after Issuance, the bonds were selling at 96, and the warrants were selling for $50 each. Instructions: Prepare the entry to record the issuance of the bonds and warrants. 3. The Cinci Company issues $100,000, 10% bonds at 103 on April 1, 2020. The bonds are dated January 1, 2020 and mature eight years from that date. Straight-line amortization is used. Interest is paid annually each December 31. Compute the bond carrying value as of December 31, 2023 Answer $ 4. At December 31, 2026, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. 60% of the bonds are retired at 103 on January 1, 2028, what is the gain or loss on early extinguishment? Answer $ Required: Compute the answer for each of the four problems. Show supporting computation. No need to show questions
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