(1) FacebookA New tabE Intermediate Accounting 2.pdfO FileC:/Users/Admin/Desktop/2nd%20Year%20-%201st%20Sem/Intermediate%20Accounting%202.pdf...O Page viewA Read aloudV Draw- HighlightO Erase34of 382. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. Thebonds pay interest semi-annually on June 30 and December 31. The bonds are issued toyield5%. What are the proceeds from the bond issue?2.5%3.0%P 5.0%6.0%Present value of a single sum for 588385periods86261.78353.74726.7812031Present value of a single sum for 10periods4.6458374409.6139155839Present value of annuity for 5 periodsPresent value of annuity for 10 8.752064.579714.329484.21236periods8.530207.721737.36009O Type here to search6:15 pm11/09/202183.8%29°CG 1) O ENG

Interest=Issue price×6%×612=P 5,000,000×6%×612=P 150,000

Answered: 2. Downing Company issues P5,000,000,…

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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26. Bonds Issued at a Premium (Effective Interest) Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.
1->> O O O Baxter's Hamburgers issued 6%, 10-year bonds payable at 95 on December 31, 2024. At December 31, 2026, Baxder reported the bonds payable as follows: (Click the icon to view the bonds payable.) Requirement 1. Answer the following questions about Baxter's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2026? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? Requirement 2. Record the June 30, 2026, semiannual interest payment and amortization of discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date 2026 Jun. 30 Accounts and Explanation Debit Baxter's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Credit D
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