2. Bond Issue B a. Were the bond B issued at a premium and/or discount?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please answer all parts of the question within 30 minutes with detailed explanation. Make sure the answers are in detailed manner for better understanding. Else i will give negative ratings.
Transcribed Image Text:(A)
Cash
Interest
(B)
Period
Interest
Paid
$610,000.0
(E)
Carrying.
Value
$610,000
Expense
(C)
(D)
Period
x
(E) x 6.5% Amort.
Ending 6.08 x 3/12 x 3/12 (A) (B)
Apr.
Unamortized
Balance
(D)
$22,299
1/18
$587,701
Jul.
$ 9,150 $ 9,550 $ 400
21,899
588,101
1/18
1
#
1
⠀
1
Apr.
9,150
9,810
660
5,677
604,323
1/26
Jul.
9,150
9,820
670
5,007
604,993
1/26
Oct.
9,150
9,831
681
4,326
605,674
1/26
Jan.
9,150
9,842
692
3,634
606,366
1/27
Apr.
9,150
9,853
703
2,931
607,069
1/27
Jul.
JUL
9,150
9,865
715
2,216
607,784
1/27
23
Oct.
9,150
9,876
726
1,490 608,510
1/27
Jan.
9,150
9,888
738
752
609,248
1/28
Apr.
752
0
610,000
9,150
9,902*
1/28
Totals $366,000
$388,299 $22,299
*Adjusted for rounding
2. Bond Issue B
a. Were the bond B issued at a premium and/or discount?
Issued at discount
O Issued at premium
O Issued at premium & discount
b. Journalize the issuance of bond B on April 1, 2018.
View transaction list
Journal entry worksheet
< 1
Record the Issuance of bonds at a discount.
c. What is the contract interest rate for the issue bond B?
Contract interest rate
d. Interest of how much is paid how often for bond B issued?
Transcribed Image Text:(A)
Cash
Interest
(B)
Period
Interest
Paid
$610,000.0
(E)
Carrying.
Value
$610,000
Expense
(C)
(D)
Period
x
(E) x 6.5% Amort.
Ending 6.08 x 3/12 x 3/12 (A) (B)
Apr.
Unamortized
Balance
(D)
$22,299
1/18
$587,701
Jul.
$ 9,150 $ 9,550 $ 400
21,899
588,101
1/18
1
#
1
⠀
1
Apr.
9,150
9,810
660
5,677
604,323
1/26
Jul.
9,150
9,820
670
5,007
604,993
1/26
Oct.
9,150
9,831
681
4,326
605,674
1/26
Jan.
9,150
9,842
692
3,634
606,366
1/27
Apr.
9,150
9,853
703
2,931
607,069
1/27
Jul.
JUL
9,150
9,865
715
2,216
607,784
1/27
23
Oct.
9,150
9,876
726
1,490 608,510
1/27
Jan.
9,150
9,888
738
752
609,248
1/28
Apr.
752
0
610,000
9,150
9,902*
1/28
Totals $366,000
$388,299 $22,299
*Adjusted for rounding
2. Bond Issue B
a. Were the bond B issued at a premium and/or discount?
Issued at discount
O Issued at premium
O Issued at premium & discount
b. Journalize the issuance of bond B on April 1, 2018.
View transaction list
Journal entry worksheet
< 1
Record the Issuance of bonds at a discount.
c. What is the contract interest rate for the issue bond B?
Contract interest rate
d. Interest of how much is paid how often for bond B issued?
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