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all questions and work please. thank you 3. What would be the total interest cost of the bonds over their full term? A. $1,359,033 B.
all questions and work please. thank you
3. What would be the total interest cost of the bonds over their full term? A. $1,359,033 B. $6,000,000 C. S4,640,967 D. $7,359,033 E. None of the above 4 On January 1, 201 l Ozark Minerals issued S 10,000,000 of 9%, 10-year convertible bonds at los The bonds pay interest on June 30 and December 31. The bonds are convertible into 400.000 shares of Ozark's no par common stock. The fair market value of Ozark's common on Jan. 1, 2011 was $25.50 per share. Upon issuance under GAAP, Ozark should credit premium on bonds payable $10 B. credit bonds payable $10,100,000. C. credit equity $100,000 D. debit discount on bonds payable $100,000. E. None of the above 5 On June 30, 2011, Hardy Corporation issued $10 million of its 8% bonds for S9.2 million. The bonds were priced to yield 10%. The bonds are dated June 30, 2011, and mature on June 30, 2018. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31. 2011? A. $40,000 B. $76,000 C. $60,000 D. $32,000 E None of the above 3. What would be the total interest cost of the bonds over their full term? A. $1,359,033 B. $6,000,000 C. S4,640,967 D. $7,359,033 E. None of the above 4 On January 1, 201 l Ozark Minerals issued S 10,000,000 of 9%, 10-year convertible bonds at los The bonds pay interest on June 30 and December 31. The bonds are convertible into 400.000 shares of Ozark's no par common stock. The fair market value of Ozark's common on Jan. 1, 2011 was $25.50 per share. Upon issuance under GAAP, Ozark should credit premium on bonds payable $10 B. credit bonds payable $10,100,000. C. credit equity $100,000 D. debit discount on bonds payable $100,000. E. None of the above 5 On June 30, 2011, Hardy Corporation issued $10 million of its 8% bonds for S9.2 million. The bonds were priced to yield 10%. The bonds are dated June 30, 2011, and mature on June 30, 2018. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, by how much should the bond discount be reduced for the 6 months ended December 31. 2011? A. $40,000 B. $76,000 C. $60,000 D. $32,000 E None of the above
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