Question

The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight...

The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $540,000 on November 1, 2021. The bonds sold for $486,560, a price to yield the market rate of 8%. The bonds mature October 31, 2041 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method. Required: 1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2021? 2. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2021? 3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2022? 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2022? (For all requirements, do not round your intermediate calculations. Enter your answers in whole dollars.)

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Thankyou.......

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight...
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 5% bonds with a face amount of $560,000 on November 1, 2021. The bonds sold for $495,280, a price to yield the market rate of 6%. The bonds mature October 31, 2041 (20 years). Interest is paid semiannually on April 30 and October 31 and is determined using the effective interest method. Required: 1. What amount of interest expense related...
Pharoah Co. has the following notes receivable outstanding at December 31, 2021: Issue Date Term Principal...
Pharoah Co. has the following notes receivable outstanding at December 31, 2021: Issue Date Term Principal Interest Rate 1. August 31, 2021 5 months $19,200 3% 2. February 1, 2021 12 months 33,600 3% 3. October 31, 2021 6 months 10,800 4% Interest on each of the above notes is payable at maturity. Calculate the interest revenue that Pharoah Co. will report on its income statement for the year ended December 31, 2021. Indicate where this will be presented on...
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased...
On January 1, 2021, Miller Company leased equipment from Alpha Louse Corp. Alphe Lease Corp purchased the equipment at a cost of $150.000. The agreement specified three payments of $50,000 beginning January 1, 2021, the beginning of the lense, and on each December 31 thereafter through 2022. The useful life of the equipment is estimated to be five years wor's implicit rate was 5%. The present value of those three payments at a discount rate of % is $142,971, On...
Cordova, Inc., reported the following receivables in its December 31, 2020, year-end balance sheet: Current assets:...
Cordova, Inc., reported the following receivables in its December 31, 2020, year-end balance sheet: Current assets: Accounts receivable, net of $45,000 in allowance for uncollectible accounts $ 377,000 Interest receivable    15,000 Notes receivable 350,000 Additional information: The notes receivable account consists of two notes, a $120,000 note and a $230,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $230,000 note is dated March 31, 2020, with principal and...
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $175 million....
On January 1, 2021, Baddour, Inc., issued 12% bonds with a face amount of $175 million. The bonds were priced at $153.5 million to yield 14%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2021? 2. What amount(s) related to the bonds would Baddour report in its income statement for the year ended September...
Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company...
Gerdes Psychological Services, Inc., closes its temporary accounts once each year on December 31. The company recently issued the following income statement as part of its annual report: GERDES PSYCHOLOGICAL SERVICES, INC. INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR Revenue:        Counseling revenue        $270,000 Expenses:        Advertising expense    $ 2,160    Salaries expense    112,800    Office supplies expense    1,440    Utilities expense    1,020    Malpractice insurance expense    7,200...
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are...
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: $61,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. Prepaid rent of $35,000, covering the period January 1, 2022, through December 31, 2023. Notes payable of $222,000. The notes are payable in annual installments of $31,000 each, with the first installment payable on March 1,...
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its...
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing’s 2021 financial statements were issued on April 1, 2022.     Accounts receivable $ 97,250 Accounts payable 52,600 15% notes, payable to bank 618,000 Mortgage note payable 1,334,000     Other information: The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 15%, payable at maturity. The mortgage...
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its...
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2021, the end of its fiscal year, included the following account balances. Manufacturing’s 2021 financial statements were issued on April 1, 2022.     Accounts receivable $ 90,000 Accounts payable 46,600 15% notes, payable to bank 654,000 Mortgage note payable 1,253,000     Other information: The bank notes, issued August 1, 2021, are due on July 31, 2022, and pay interest at a rate of 15%, payable at maturity. The mortgage...
Cypress Oil Company's December 31, 2021, balance sheet listed $734,000 of notes receivable and $21,200 of...
Cypress Oil Company's December 31, 2021, balance sheet listed $734,000 of notes receivable and $21,200 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $360,000 and interest at 10% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $230,000 and interest due 3/31/2022. Note 3 $150,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT