[Leeann10100]

Please help me I tried some but the rest is headache.

1, If a company issues 10-year, 8%, $100,000 bonds paying interest on an annual basis, at a $5,200 premium, the annual interest expense on the bonds will be:

2, On January 1, the long-term liability section of a company's 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

3, If a company's 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.

4, If a company issued $100,000 of 6% bonds when the market rate of interest was 4.6% and received proceeds of $104,500, amortization of the premium for the first interest period will be: (Using the effective interest method of amortization).

5, A company sold $750,000 of bonds for $725,000 in January. The bonds mature in 10 years and pay interest annually on December 31. If the company properly recorded the payment of interest and amortization of the discount using the effective interest method at the end of the first year the carrying value will be:

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

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

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?

9, Jason Corporation made the decision to redeem $300,000 of its bonds prior to maturity. The bonds had been issued at a discount, and the balance in the discount account at the time of redemption was $15,000. The corporation's bond certificates indicated that the bonds could be retired early at 103 (103%). Jason's retirement of the bonds be:

Redemption Price... $300,000 x 1.03 = $309,000
$300,000 – 15,000 = 294,000
($15,000) Loss

[morgaine300]

2, On January 1, the long-term liability section of a company’s 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.)

3, If a company’s 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?

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.

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.

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.

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