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2, On January 1, the long-term liability section of a companys balance sheet showed a balance of $20,000 in the bonds payable account. On December 31, the balance in the same account was $35,000. The change would appear on the statement of cash flows as a inflow of cash of:
Long Term Liabilities -
...
$35,000
Bonds Payable
.
... 20,000
Less: Discount on Bonds Payable $15,000
You're completely off on the wrong topic. This is about cash flow, not about the bonds themselves. You only need to worry about the fact that it's a liability. What would have happened cash-wise to get an INCREASE in a long-time liability account? (Forget that it's a bond because you're trying to mix up subjects.)
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3, If a companys bonds are callable, the issuing company is likely to retire the bond before maturity if the bonds are paying 6% interest while the market rate of interest is 9%. Why?
The issuer will lose money.
Would you call in the bonds early if you were going to lose money?
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6, A Balance Sheet shows the following amounts: Current Liabilities - $5,000; Bonds Payable - $1,500; Less Obligations - $2,000; and Deferred Income Taxes - $300. Total Stockholders equity is - $6,000. The debt-to-equity is:
$5,000 + 1,500 + 2,000 + 300 = 8,800 = 1.47
6,000 6,000
I guess. The problem is worded very badly. "Less" obligations? If they're listing a bunch of liabilities, why would it be "less"? And deferred income taxes can be an asset or a liability, so I guess you're supposed to be assuming it too is a liability.
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7, A company issue bonds in the amount of $50,000 with a life of five years. If the face value rate is 5% and interest is paid annually, what is the total amount of interest paid over the life of the bonds?
$50,000 x .05 x 5 = $12,500
Correct.
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8, A company leases a machine. The annual payments are $6,000, and the life of the lease is eight years. It is estimated that the useful life of the machine is nine years. How would the company record the acquisition of the machine?
The machine would be recorded as an Asset, at the present value of the annual cash payments $6,000 for eight years, but how do I write it up?
How you figure out the present value is all part of this big subject, which is a big subject and you need to go back and start from scratch learning how to do this stuff. So I'm not going to address this question individually.
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Redemption Price... $300,000 x 1.03 = $309,000
$300,000 15,000 = 294,000
($15,000) Loss
300,000 - 15,000 = 294,000? Since when? You should have caught that one.
As for the rest of it, you've got too many different things here and you need to start in ONE place learning how to do them. As I said, big subject. There seems to be a lot on amortization and dealing with carrying values. So I'm going to give you a link where you can start reading. Please try to ask some specific questions about what you don't understand.
Principles of Accounting Chapter 13