Question
1. On January 1, 2016 Nick issued a $100,000 bond that matures in 20 years and...
1. On January 1, 2016 Nick issued a $100,000 bond that matures in 20 years and pays 4% interest (stated or coupon rate) a year. (Payment date is December 31.) The market (yield) rate is 6%.
$ _______________________
2. Record the entry Nick has to make on January 2 when he issues the Bonds Payable.
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/16 |
|||
For the rest of this quiz, assume the bond was sold @ 95.
3. Complete the first two years of the following table:
|
Year |
Interest Expense |
Book |
||
|
1/1/16 |
||||
|
1 |
||||
|
2 |
4. Complete the entries at the end of the year for the first two years. Please use the table above.
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/16 |
|||
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/17 |
|||
1. On January 1, 2016 Nick issued a $100,000 bond that matures in 20 years and pays 8% interest (stated or coupon rate) a year. (Payment date is December 31.) The market (yield) rate is 6%.
$ _______________________
2. Record the entry Nick has to make on January 2 when he issues the Bonds Payable.
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/16 |
|||
For the rest of this quiz, assume the bond was sold @ 104.
3. Complete the first two years of the following table:
|
Year |
Interest Expense |
Book |
||
|
1/1/16 |
||||
|
1 |
||||
|
2 |
4. Complete the entries at the end of the year for the first two years. Please use the table above.
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/16 |
|||
|
Date |
Accounts |
Debit(s) |
Credit(s) |
|
12/31/17 |
|||
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
On January 1, 2016 Nick issued a $100,000 bond that matures in 20 years and pays...
On January 1, 2016 Nick issued a $100,000 bond that matures in
20 years and pays 4% interest (stated or coupon rate) a year.
(Payment date is December 31.) The market (yield) rate is
6%.assume the bond was sold @
95.
Complete the first two years of the following table:
Year
Interest Expense
Book
1/1/16
1
2
4. Complete the entries at the end of the year for the first two
years. Please use the table above....
On January 1, 2018, White Water issues $560,000 of 6% bonds, due in 20 years, with...
On January 1, 2018, White Water issues $560,000 of 6% bonds, due
in 20 years, with interest payable annually on December 31 each
year.
Assuming the market interest rate on the issue date is 5%, the
bonds will issue at $629,789.
Required:
1. Complete the first three rows of an amortization
table.
Date
Cash Paid
Interest Expense
Decrease in Carrying Value
Carrying Value
1/1/18
12/31/18
12/31/19
2. Record the journal entries for bond issue on
January 1, 2018, and the...
On January 1, Year 1, a company issues $440,000 of 9% bonds, due in 20 years,...
On January 1, Year 1, a company issues $440,000 of 9% bonds, due
in 20 years, with interest payable semiannually on June 30 and
December 31 each year.
Assuming the market interest rate on the issue date is 8%, the
bonds will issue at $483,544.
A) Complete the first three rows of an amortization table.
B) Record the bond issue on January 1, Year 1, and the first two
semiannual interest payments on June 30, Year 1, and December 31,...
On January 1 20X1, Jude Company issues bonds with a face value of $1,000,000 in exchange...
On January 1 20X1, Jude Company issues bonds with a face value
of $1,000,000 in exchange for cash. On that date the market rate is
12%. The bond has a stated rate of 15% and matures in five years.
Interest is paid every four months. Which of the following is part
of the journal entry that Jude Company records at the date of the
bond issuance.
CREDIT to Premium on Bond Payable for $110,900
DEBIT to Bond Payable for $1,000,000...
On January 1, 2018, Splash City issues $470,000 of 9% bonds, due in 20 years, with...
On January 1, 2018, Splash City issues $470,000 of 9% bonds, due
in 20 years, with interest payable semiannually on June 30 and
December 31 each year. Assuming the market interest rate on the
issue date is 8%, the bonds will issue at $516,513. 1.Complete the
first three rows of an amortization table. 2. Record the bond issue
on January 1, 2018, and the first two semiannual interest payments
on June 30, 2018, and December 31, 2018.
On 1/1/19 Impish Corp. issued a 10-year bond with a par value of $100,000, an annual...
On 1/1/19 Impish Corp. issued a 10-year bond with a par value of
$100,000, an annual stated rate of 10%, and a market rate (yield)
of 12%. Interest payments are made annually each
12/31. The bonds were issued for a price of
$88,702.
Required (1): Record the journal
entries for the first two interest payments (on 12/31/2019 and
12/31/2020) assuming the company uses the
effective-rate method (round to the nearest
dollar).
Remember to include financial statement effects in
parentheses. All journal...
On January 1 of Year 1, Lily Company issued a $100,000, 16%, 15-year bond. Interest is...
On January 1 of Year 1, Lily Company issued a $100,000, 16%,
15-year bond. Interest is paid semi-annually each June 30 and
December 31, so the first contract interest payment was made on
June 30 of Year 1 and the second contract interest payment was made
on December 31 of Year 1. On the day the bond was issued, the
annual market interest rate on bonds with the same degree of
riskiness was 8%. Lily uses the effective-interest method on...
On January 1 of Year 1, Lily Company issued a $100,000, 16%, 10-year bond. Interest is...
On January 1 of Year 1, Lily Company issued a $100,000, 16%,
10-year bond. Interest is paid semi-annually each June 30 and
December 31, so the first contract interest payment was made on
June 30 of Year 1 and the second contract interest payment was made
on December 31 of Year 1. On the day the bond was issued, the
annual market interest rate on bonds with the same degree of
riskiness was 8%. Lily uses the effective-interest method on...
Example #3, On January 1, 2019 a company issues 100 bonds, each for $1,000, for par,...
Example #3, On January 1, 2019 a company issues 100 bonds, each
for $1,000, for par, as the interest rate on the bond
(stated/coupon rate) is 4% and the market rate is also
4%. They then used this cash to purchase an automobile
for $100,000 cash. The bond is to be paid in at the end
of THREE years (December 31, 2021).
PREPARE THE JOURNAL ENTRIES FOR 2019:
Date
Account Name
Debit
Credit
1/1/2019
12/31/2019
PREPARE THE JOURNAL ENTRIES FOR 2020:
Date...
On January 1, 2018, White Water issues $440,000 of 7% bonds, due in 10 years, with...
On January 1, 2018, White Water issues $440,000 of 7% bonds, due in
10 years, with interest payable annually on December 31 each
year.
Assuming the market interest rate on the issue date is 6%, the
bonds will issue at $472,382.
1.
Complete
the first three rows of an amortization table.
Date Cash PaidI Interest Expense Decrease in Carrying Value
Carrying Value
1/1/18
12/31/18
12/31/19
2.
Record
the bond issue on January 1, 2018, and the first two interest
payments...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 4 minutes ago
asked 16 minutes ago
asked 21 minutes ago
asked 29 minutes ago
asked 33 minutes ago
asked 35 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago