I didn't really understand what you meant but I think it's $275
Answer:
a.
January 1 Cash 720000 Dr
Discount on Bonds Payable 30000 Dr
Bonds Payable 750000 Cr
b.
January 1 Cash 772500 Dr
Bonds Payable 750000 Cr
Premium on Bonds Payable 22500 Cr
Explanation:
a.
When the bonds are issued at 96, this means that they are issued at 96% of the face value of the bond which is 750000 * 0.96 = 720000
So, the cash received from issuing the bonds is 720000. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the discount amount which will be debited.
b.
When the bonds are issued at 103, this means that they are issued at 103% of the face value of the bond which is 750000 * 1.03 = 772500
So, the cash received from issuing the bonds is 772500. As the face value of the bonds is 750000 which will be recorded as bonds payable, the difference between the cash received and the face value is the premium amount which will be credited.
Answer:
$885,000
Explanation:
How you are going to report the assets depends on whether you want to use the current rate method or the temporal (historic) method. Under the temporal method, you should use the historical rates, therefore, the total amount reported on the balance sheet is $885,000. if you want to use the current rate method, you should report the assets at $755,000, but you must also report an unrealized loss = $885,000 - $755,000 = $130,000 in the cumulative translation adjustment account. The total amount reported will not change, only the way you report it will change.
D) Can be submitted online or by mail
