!Required informationP10-2 (Algo) Reporting Bonds Issued at Par LO 10-2[The following information applies to the questions displayed below.]On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon rate of 7.5 percent.The bonds mature in ten years and pay interest semiannually every June 30 and December 31. When the bonds weresold, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriatefactor(s) from the tables provided.)P10-2 Part 22. What amount of interest expense should be recorded on June 30 and December 31 of this year?Interest expenseJune 30December 31 Required informationP10-2 (Algo) Reporting Bonds Issued at Par LO 10-2[The following information applies to the questions displayed below.]On January 1 of this year, Nowell Company issued bonds with a face value of $140,000 and a coupon rate of 7.5 percent.The bonds mature in ten years and pay interest semiannually every June 30 and December 31. When the bonds weresold, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriatefactor(s) from the tables provided.)P10-2 Part 1Required:1. What was the issue price on January 1 of this year? (Round your final answers to nearest whole dollar amount.)Issue price

Price of bond is the present value of coupon payment and present value of par value of bond taken on…

10-2 (Algo) Reporting Bonds Issued at Par LO 10-2 The following information applies to the questions displayed below.] n January 1 of this year, Nowell Company issued bonds with a face value ne bonds mature in ten years and pay interest semiannually every June 3 old, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1 ctor(s) from the tables provided.) Part 1 d: was the issue price on January 1 of this year? (Round your final answers

10-2 (Algo) Reporting Bonds Issued at Par LO 10-2 The following information applies to the questions displayed below.] n January 1 of this year, Nowell Company issued bonds with a face value ne bonds mature in ten years and pay interest semiannually every June 3 old, the annual market rate of interest was 7.5 percent. (FV of $1, PV of $1 ctor(s) from the tables provided.) Part 1 d: was the issue price on January 1 of this year? (Round your final answers

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required Information P10-10 (Algo) Preparing a Bond Amortization Schedule for a Bond Issued at a Premium LO10-5 [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Interest $ 1,661 ? ? 1,640 Date January 1, Year 1 End of Year 1 End of Year 2 End of Year 3 End of Year 4 -10-10 Part 3 Cash $ 1,792 ? ? Cash received ? Amortization $ 131 ? 145 ? Balance 32,566 32,435 32,297 ? 32,000 $ . How much cash was received on the day the bonds were issued (sold)?
Recording Bonds Issued at a Premium-Effective Interest Yale Corporation issued $36,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method. If the bonds were sold to yield 7%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 b. June 30 Account Name To record the issuance of bonds. To record the first interest payment. > << Dr. Cr.
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3. Your company issues $10,000,000 in 4% bonds maturing in 10 years on January 1, Year 1 Interest will be paid annually on January 1, On the day the bonds are issued, the market rate was 3%, resulting in a bond price of $10,853,000. Prepare all of the journal entries to record issuance of these bonds and any end of year adjustments for Year 1. 1/1/X1 12/31/X1 4. Please record all of the necessary journal entries for Year 2. 1/1/X2 12/31/X2
Eagle Corporation issued $9,990,000, 5 percent bonds dated April 1, year 1. The market interest rate was 6 percent, with interest paid each March 31. The bonds mature in three years, on March 31, year 4. Eagle's fiscal year ends on December 31. Use Table 8C.1, Table 8C.2. Required: 1. What was the issue price of these bonds? (Round time value factor to 4 decimal places. Round the final answer to the nearest whole dollar.) Bond issue price $ 9,722,768 2. Compute the interest expense for the period ended December 31, year 1. The company uses the effective-interest method of amortization. (Round time value factor to 4 decimal places. Round intermediate and final answer to the nearest whole dollar.) Interest expense 3. Show how the bonds should be reported on the statement of financial position at December 31, year 1. (Round intermediate and final answer to the nearest whole dollar.) EAGLE CORPORATION As of December 31, Year 1 Statement of financial position: Bonds payable