Earl Lee Riser Alarm Co. issued $10,000 of bonds on January 1,
2018. The bonds pay...
Earl Lee Riser Alarm Co. issued $10,000 of bonds on January 1,
2018. The bonds pay interest semiannually. This is a partial bond
amortization schedule for the bonds.
What would be the total interest expense recognized for the bond
issue over its full term?
Payment
Cash
Effective
interest
Decrease in
balance
Outstanding
balance
9,080
1
400
409
9
9,089
2
400
409
9
9,098
3
400
409
9
9,107
4
400
Trader Joes issues $5,000,000 of 8%,
4-year bonds dated January 1, 2013, that pay interest semiannually...
Trader Joes issues $5,000,000 of 8%,
4-year bonds dated January 1, 2013, that pay interest semiannually
on June 30 and December 31. The bonds are issued at a price of
5,030,00
Prepare the January 1, 2013, journal
entry to record the issuance.
For each semiannual period, compute
the cash payment,
the straight-line premium or discount amortization
the bond interest expense
Cash proceeds=
Cash proceeds=
Bonds interest expense= cash interest
paid + bond discount
Bonds interest expense=
Bonds interest expense=
Bonds...
Prescott Corporation issued ten thousand $1,000 bonds on January
1, 2018. The bonds have a 10-year...
Prescott Corporation issued ten thousand $1,000 bonds on January
1, 2018. The bonds have a 10-year term and pay interest
semiannually. This is the partial bond
amortization schedule for the bonds.
Payment
Cash
Effective
Interest
Decrease in
Balance
Outstanding
Balance
11,487,747
1
400,000
344,632
55,368
11,432,379
2
400,000
342,971
57,029
11,375,350
3
400,000
341,261
58,739
11,316,611
4
400,000
What is the book value of the bonds as of December 31, 2019?
$11,432,379.
$11,375,350.
$11,316,611.
$11,256,109.
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, 2021, for $18 million, Marker Company issued 10%
bonds, dated January 1, 2021,...
On January 1, 2021, for $18 million, Marker Company issued 10%
bonds, dated January 1, 2021, with a face amount of $20 million.
For bonds of similar risk and maturity, the market yield is 12%.
Interest is paid semiannually on June 30 and December 31.
Required:
1. Prepare the journal entry to record interest on
June 30, 2021, using the effective interest method.
2. Prepare the journal entry to record interest on
December 31, 2021, using the effective interest method.
On January 1, 2021, for $17.1 million, Santiago Company issued
8% bonds, dated January 1, 2021,...
On January 1, 2021, for $17.1 million, Santiago Company issued
8% bonds, dated January 1, 2021, with a face amount of $19.1
million. For bonds of similar risk and maturity, the market yield
is 10%. Interest is paid semiannually on June 30 and December
31.
Required:
1. Prepare the journal entry to record interest on
June 30, 2021, using the effective interest method.
2. Prepare the journal entry to record interest on
December 31, 2021, using the effective interest method.
On January 1 of the current year, Feller Corporation issued
$6,000,000 of 10% debenture bonds on...
On January 1 of the current year, Feller Corporation issued
$6,000,000 of 10% debenture bonds on a basis to yield 9%, receiving
$6,269,160. Interest is payable annually on December 31 and the
bonds mature in 6 years. The effective-interest method is used.
What is the interest expense for the first year?
What is the interest expense for the second year?
On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face...
On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face amount of $20.7 million. The bonds mature in
2030 (10 years). For bonds of similar risk and maturity, the market
yield is 10%. Interest is paid semiannually on June 30 and December
31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $1) (Use appropriate factor(s) from the tables provided. Round
your intermediate calculations to...
On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face...
On January 1, 2021, Bishop Company issued 8% bonds dated January
1, 2021, with a face amount of $20.7 million. The bonds mature in
2030 (10 years). For bonds of similar risk and maturity, the market
yield is 10%. Interest is paid semiannually on June 30 and December
31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD
of $1) (Use appropriate factor(s) from the tables provided. Round
your intermediate calculations to...