Keaubie Co. issued $280,000, 10%, 10-year bonds payable at a
price of 95, on Jan. 1,...
Keaubie Co. issued $280,000, 10%, 10-year bonds payable at a
price of 95, on Jan. 1, 2019 a. Journalize the issuance of the
bonds b. Journalize the first semi - annual interest payment and
amortization of the discount or premium.
Sheridan Company issued $501,000, 8%, 30-year bonds on January
1, 2022, at 102. Interest is payable...
Sheridan Company issued $501,000, 8%, 30-year bonds on January
1, 2022, at 102. Interest is payable annually on January 1.
Sheridan uses straight-line amortization for bond premium or
discount.
Prepare the journal entries to record the following events.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
(a)
The issuance of the bonds.
(b)
The accrual of interest and the premium amortization on
December 31, 2022.
(c)
The payment of interest on January 1, 2023....
On January 1, 2021, Sheridan Satellites issued $1,200,000,
10-year bonds. The bonds pay semi-annual interest on...
On January 1, 2021, Sheridan Satellites issued $1,200,000,
10-year bonds. The bonds pay semi-annual interest on July 1 and
January 1, and Sheridan has a December 31 year end. A partial bond
amortization schedule is presented below:
Semi-Annual
Interest Period
Interest
Payment
Interest
Expense
Amortization
Bond
Amortized Cost
Jan. 1, 2021
$1,114,726
July 1, 2021
$ [1]
$ [2]
$3,015
1,117,741
Jan. 1, 2022
36,000
39,121
3,121
1,120,862
July 1, 2022
36,000
39,230
[3]
1,124,092
Jan. 1, 2023
36,000
39,343...
On January 1, 2021, Cullumber Satellites issued $1,430,000,
10-year bonds. The bonds pay semi-annual interest on...
On January 1, 2021, Cullumber Satellites issued $1,430,000,
10-year bonds. The bonds pay semi-annual interest on July 1 and
January 1, and Cullumber has a December 31 year end. A partial bond
amortization schedule is presented below:
Semi-Annual
Interest Period
Interest
Payment
Interest
Expense
Amortization
Bond
Amortized Cost
Jan. 1, 2021
$1,328,381
July 1, 2021
$ [1]
$ [2]
$3,593
1,331,974
Jan. 1, 2022
42,900
46,619
3,719
1,335,693
July 1, 2022
42,900
46,749
[3]
1,339,542
Jan. 1, 2023
42,900
46,884...
On January 1, 20X1, WP Industries issued $200,000 (face value)
of bonds with a stated (coupon)...
On January 1, 20X1, WP Industries issued $200,000 (face value)
of bonds with a stated (coupon) rate of 6%. The bonds pay interest
semi-annually on June 30 and December 31 and mature in 15 years. If
the market rate of interest on the issue date was 8%, the bonds
will sell for
Link to TVM Tables (will open in a new window)
Select one:
a. $171,420
b. $239,201
c. $165,762
d. $200,000
e. $165,416
On January 1, of the current year, Colour Inc. issued bonds with
a face value of...
On January 1, of the current year, Colour Inc. issued bonds with
a face value of $500,000. The bonds pay interest annually and
mature in 10 years. The bonds have a stated interest rate of 6%.
The market rate on the date of issue was 4%.
1. Compute the issue price of the bonds
2. What will the carrying value of the bond be at maturity?
3. What will be the total amount of interest expense recognized
over the life...
Debt Issued at a Premium (Straight Line) On January 1, 2020,
Ironman Steel issued $800,000, 8-year...
Debt Issued at a Premium (Straight Line) On January 1, 2020,
Ironman Steel issued $800,000, 8-year bonds for $869,000. The
stated rate of interest was 6% and interest is paid annually on
December 31. Required: Prepare the necessary journal entry on
December 31, 2023, assuming the straight-line method is followed.
2023 Dec. 31 Interest Expense Premium on Bonds Payable Cash (Record
interest expense)
On
January
1,
Year
1,
assume Smart
Touch Learning issued
10-year,
$100,000 bonds at 95% with...
On
January
1,
Year
1,
assume Smart
Touch Learning issued
10-year,
$100,000 bonds at 95% with an interest rate of 6% paid
semi-annually. Using
the
straight-line amortization
method, what
is the amount of interest expense recorded each
interest
period?
A.
3,000
B.3,250
C.
6,000
D.
6,500
6. On January 1, 2019, Larkspur Corporation issued $500,000,
10%, 5-year bonds, at 98. The bonds...
6. On January 1, 2019, Larkspur Corporation issued $500,000,
10%, 5-year bonds, at 98. The bonds pay semiannual interest on
January 1 and July 1. The company uses the straight-line method of
amortization for bond premium and discount.
Prepare all of the journal entries that
Larkspur Corporation would make related to this bond issue on
a) The January 1, 2019 issue date.
b) The July 1, 2019 interest payment date.
c) Based on the above information, what was the carrying...
On January 1, 2012, Concord Corporation issued $18000000 of 9%
ten-year bonds at 102. The bonds...
On January 1, 2012, Concord Corporation issued $18000000 of 9%
ten-year bonds at 102. The bonds are callable at the option of
Concord at 104. Concord has recorded amortization of the bond
premium on the straight-line method (which was not materially
different from the effective-interest method).
On December 31, 2018, when the fair value of the bonds was 95,
Concord repurchased $3980000 of the bonds in the open market at 95.
Concord has recorded interest and amortization for 2018. Ignoring...