3. Bonds Payable:On January 1, 2021, a large corporation issued bonds with a face value of $8 million and an annual interest rate of 3%, paid semi-annuallyon June 30 and December 31, and will reach maturity on December 31, 2031. On January 1, 2021, the bonds were issued at 91.82 to amarket rate of 4%.1. Calculate the proceeds on the issuance of the bonds.- Zoom Me2. Complete the bond amortization table from Jan 1, 2021 to June 30, 2021.InterestInterestDiscountDiscountCarryingPayments ExpenseAmortization BalanceAmountJan1,2021June30,Unmute20213. Record the issuance of bonds on Jan 1, 2021.AccountsDebitCredit« Previous PageNext PageDELLF5 TranslateMapsimail YouTube2. Complete the bond amortization table from Jan 1, 2021 to June 30, 2021.DiscountDiscountCarryingInterestInterestAmortization BalanceAmountPayments ExpenseJan1,2021June30,20213. Record the issuance of bonds on Jan 1, 2021.AccountsDebitCredit4. Show the journal entry the interest payment and expense on Jun 30, 2021.AccountsDebitCreditDELLリF4F5

If market rate is higher than the coupon rate of bond, the bonds are to be issued at discount.

3. Bonds Payable: On January 1, 2021, a large corporation issued bonds with a face value of $8 million and an annual interest rate of 3%, paid semi-annua on June 30 and December 31, and will reach maturity on December 31, 2031. On January 1, 2021, the bonds were issued at 91.82 to a market rate of 4%. 1. Calculate the proceeds on the issuance of the bonds. - Zoc 2. Complete the bond amortization table from Jan 1, 2021 to June 30, 2021. Interest Interest Discount Discount Carrying Payments Expense Amortization Balance Amount Jan 1, 2021 June 30, 2021 Un 3. Record the issuance of bonds on Jan 1, 2021. Accounts Debit Credit

3. Bonds Payable: On January 1, 2021, a large corporation issued bonds with a face value of $8 million and an annual interest rate of 3%, paid semi-annua on June 30 and December 31, and will reach maturity on December 31, 2031. On January 1, 2021, the bonds were issued at 91.82 to a market rate of 4%. 1. Calculate the proceeds on the issuance of the bonds. - Zoc 2. Complete the bond amortization table from Jan 1, 2021 to June 30, 2021. Interest Interest Discount Discount Carrying Payments Expense Amortization Balance Amount Jan 1, 2021 June 30, 2021 Un 3. Record the issuance of bonds on Jan 1, 2021. Accounts Debit Credit

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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3. On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year bonds have a 10% interest rate in a market with a rate of 8%. Interest is payable semi-annually and the effective-interest method is used for amortization. Prepare journal entries for the following transactions. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For each of the following journal entries there is one account's treatment (DR or CR), that depends on whether it is a bond issued at a premium or a discount. You are to identify if it is a DR or a CR. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). July 1, 2018: to record issuing the bonds DR DR/CR ? CR Dec. 31, 2018: to record the amortization & payment of interest to bondholders: DR…
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Prepare entry for bonds issued. BE10.9 (LO 3), AP Ravine Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022. Prepare journal entries for bonds issued at face value.
Hi there, Can you help with attached questions, thanks kindly.
ABC company issued a 5 year $200,000 bond. The bond has a stated rate of 6% and the market rate of 8%. The company issued the bond at .91889 or $183,778 on January 1", 2019. AMORTIZATION OF BOND DISCOUNT st H J K Interest on Cash Interest Amortization Carrying Value (K + J) Carrying Year Payment. of Discount. Date Description Debit Credit Value. (A * D) (I - H) (K * E) Jan 1 2019 Jan 1, 2019 June 30, 2019 December 31, 2019 June 30, 2020 December 31, 2020 June 30, 2021 December 31, 2021 June 30, 2022 December 31, 2022 June 30, 2023 December 31, 2023 June 30, 2019 Dec 31, 2019 June 30, 2020 A Bond Par Value Discount on Bond Payable B Coupon Rate Jan 1, 2019 June 30, 2,019 Market Rate Dec 31, 2019 Dec 31, 2020 6month coupon rate (B/2) 6 month market rate (C/2) D June 30, 2020 E Dec 31, 2020 Money Received Discount (A-F) F Dec 31,2023
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
I need part B done please and thank you.
Ivanhoe Corporation has issued three different bonds during 2024. Interest is payable annually on each of these bonds. (a) Your answer is partially correct. On January 1, 2024, Ivanhoe issued 1,050, 8%, 5-year, $1,000 bonds dated January 1, 2024, at face value. Prepare the journal entry to record the bond transaction at the date of issue. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles Debit Credit Jan. 1 Cash Bonds Payable