Question

11. On January 1, 2019, Haste Enterprises issues 4-year, $100,000 bonds that pay semiannual interest of...

11. On January 1, 2019, Haste Enterprises issues 4-year, $100,000 bonds that pay semiannual interest of $5,000. The bonds pay interest on June 30 and December 31. If the effective annual rate of interest is 12%, what is the issue price of the bonds?

a. 95,653

b. 94,601

c. 93,790

d. 78,739

13. On January 1, 2018, Solo Inc. issued 500 of its 10%, $1,000 bonds at 105. Interest is payable semiannually on June 30 and December 31. The bonds mature on December 31, 2027. Solo paid $10,000 in bond issue costs. Solo uses straight-line amortization.

The amount of interest expense for 2018 is:

a. 48,500

b. 50,000

c. 52,500

d. 55,000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,200,000 par value,...
Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $2,200,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already...
Brussels Enterprises issues bonds at par dated January 1, 2019, that has a $3,500,000 par value,...
Brussels Enterprises issues bonds at par dated January 1, 2019, that has a $3,500,000 par value, mature in four years, and pay 9% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2022 (assume semiannual interest is already...
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 January 1, 2018, Splash City issues $460,000 of 8% bonds, due in 15 years, with...
On January 1, 2018, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $422,536 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. (If no...
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, 2018, Splash City issues $350,000 of 8% bonds, due in 15 years, with...
On January 1, 2018, Splash City issues $350,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $382,187. Required: 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.(If no...
On January 1, Boston Enterprises issues bonds that have a $1,550,000 par value, mature in 20...
On January 1, Boston Enterprises issues bonds that have a $1,550,000 par value, mature in 20 years, and pay 7% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31....
On January 1, 2018, Solo Inc. issued 1,600 of its 8%, $1,000 bonds at 98.3. Interest...
On January 1, 2018, Solo Inc. issued 1,600 of its 8%, $1,000 bonds at 98.3. Interest is payable semiannually on January 1 and July 1. The bonds mature on January 1, 2028. Solo paid $54,000 in bond issue costs. Solo uses straight-line amortization. What is the carrying value of the bonds reported in the December 31, 2018, balance sheet? Multiple Choice A. $1,526,920. B. $2,560,000. C. $2,614,000. D. $1,595,520.
On January 1, 2018, Universe of Fun issues $850,000, 7% bonds that mature in 15 years....
On January 1, 2018, Universe of Fun issues $850,000, 7% bonds that mature in 15 years. The market interest rate for bonds of similar risk and maturity is 8%, and the bonds issue for $776,509. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. 2. & 3. Record the issuance of the bonds on January 1, the interest payments on June 30, and December 31, 2018. (If no...
Question 10: On January 1, 2018, Splash City issues $450,000 of 7% bonds, due in 10...
Question 10: On January 1, 2018, Splash City issues $450,000 of 7% bonds, due in 10 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 $419,423. 2. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT