Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions