10) Given the following Bond Amortization Table, answer the multiple choice question belowthe Table.InterestUnamortizedDATEPMTExpenseAmortization Amortization Carrying Value1/1/2018$45,242 $654,7586/30/2018 $ 28,000 $12/31/2018 $ 28,000 $6/30/2019 $ 28,000 $12/31/2019 $ 28,000 $6/30/2020 $ 28,000 $40,505 $35,530 $32,738 $4,738 $659,4954,975 $5,224 $32,975 $664,47033,224 $33,485 $30,306 $669,6945,485 $24,822 $675,17833,759 $5,759 $19,063 $680,93734,047 $34,349 $13,016 $6,667 $0.00 $12/31/2020 $ 28,000 $6,047 $686,9846/30/2021 $ 28,000 $6,349 $693,33312/31/2021 $ 28,000 $34,667 $6,667 $700,000Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entryon January 1, 2021 would show:A. Credit to Discount on Bond Payable in the amount of $3,016B. Debit to Discount on Bond Payable in the amount of $3,016C. Gain in the amount of $3,016D. Loss in the amount of $3,016

10) Given the following Bond Amortization Table, answer the multiple choice question below the Table. Interest Unamortized DATE PMT Expense Amortization Amortization Carrying Value 1/1/2018 6/30/2018 $ 28,000 $ 12/31/2018 $ 28,000 $ 45,242 $ 654,758 32,738 $ 32,975 $ 4,738 $ 40,505 $ 659,495 35,530 $ 30,306 $ 4,975 $ 664,470 6/30/2019 $ 28,000 $ 33,224 $ 5,224 $ 5,485 $ 669,694 12/31/2019 $ 28,000 $ 6/30/2020 $ 28,000 $ 12/31/2020 $ 28,000 $ 33,485 $ 24,822 $ 675,178 33,759 $ 5,759 $ 19,063 $ 680,937 6,047 $ 6,349 $ 34,047 $ 13,016 $ 686,984 34,349 $ 34,667 $ 6,667 $ 0.00 $ 6/30/2021 $ 28,000 $ 693,333 12/31/2021 $ 28,000 $ 6,667 $ 700,000 Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entry on January 1, 2021 would show: A. Credit to Discount on Bond Payable in the amount of $3,016 B. Debit to Discount on Bond Payable in the amount of $3,016 C. Gain in the amount of $3,016 D. Loss in the amount of $3,016

10) Given the following Bond Amortization Table, answer the multiple choice question below the Table. Interest Unamortized DATE PMT Expense Amortization Amortization Carrying Value 1/1/2018 6/30/2018 $ 28,000 $ 12/31/2018 $ 28,000 $ 45,242 $ 654,758 32,738 $ 32,975 $ 4,738 $ 40,505 $ 659,495 35,530 $ 30,306 $ 4,975 $ 664,470 6/30/2019 $ 28,000 $ 33,224 $ 5,224 $ 5,485 $ 669,694 12/31/2019 $ 28,000 $ 6/30/2020 $ 28,000 $ 12/31/2020 $ 28,000 $ 33,485 $ 24,822 $ 675,178 33,759 $ 5,759 $ 19,063 $ 680,937 6,047 $ 6,349 $ 34,047 $ 13,016 $ 686,984 34,349 $ 34,667 $ 6,667 $ 0.00 $ 6/30/2021 $ 28,000 $ 693,333 12/31/2021 $ 28,000 $ 6,667 $ 700,000 Question: If this bond were retired on January 1, 2021 at $690,000, then the journal entry on January 1, 2021 would show: A. Credit to Discount on Bond Payable in the amount of $3,016 B. Debit to Discount on Bond Payable in the amount of $3,016 C. Gain in the amount of $3,016 D. Loss in the amount of $3,016

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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(Debt Investments) Presented below is information taken from a bond investment amortization schedule with related fair values provided. These bonds are classified as available-for-sale. 12/31/17 12/31/18 12/31/19 Amortized cost $491,150 $519,442 $550,000 Fair value 497,000 509,000 550,000 Instructions(a) Indicate whether the bonds were purchased at a discount or at a premium.(b) Prepare the adjusting entry to record the bonds at fair value at December 31, 2017. The Fair Value Adjustment account has a debit balance of $1,000 prior to adjustment.(c) Prepare the adjusting entry to record the bonds at fair value at December 31, 2018.
ES PA10-6 (Algo) (Supplement 10A) Recording Bond Issue, Interest Payments (Straight-Line Amortization), and Early Bond Retirement [LO 10-S1] On January 1, 2021, Loop Raceway issued 630 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $613,148. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired early on January 1, 2023 instead of at their maturity date of 12/31/2023, record the entry to retire the bonds early assuming a price of 98.…
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of 6 4:21:47 ook rint Required information [The following information applies to the questions displayed below.] Temptation Vacations issues $49 million in bonds on January 1, 2024, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: (1) Date 1/1/2024 6/30/2024 12/31/2024 (2) Cash Paid for Interest $1,470,000 1,470,000 Market annual interest rate (3) Interest Expense $1,378,755 1,376,473 (4) Decrease in % Carrying Value $91,245 93,527 (5) Carrying Value $55,150, 180 5. What is the market annual interest rate? (Round your answer to the nearest whole percent.) 55,058,935 54,965,408 4