amortizatlon LO P3 Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8, 291 7,462 6,633 Carrying Value $117, 291 () (1) (2) 116,462 115,633 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transacfion list Journal entry worksheet 3 Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01

amortizatlon LO P3 Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $109,000 and semiannual interest payments. Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8, 291 7,462 6,633 Carrying Value $117, 291 () (1) (2) 116,462 115,633 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transacfion list Journal entry worksheet 3 Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01

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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Ces Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $107,000 and semiannual interest payments. Seniannual Period-End Unamortized Premium Carrying Value $ 8,251 $ 115,251 7,426 114,426 6,601 113,601 (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bonds on January 1. Record entry Note: Enter debits before credits. Date January 01 General Journal Clear entry
Amortize Premium by Interest Method Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shunda’s fiscal year begins on January 1. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Determine…
Premium Amortization On the first day of the fiscal year, a company issues a $5,100,000, 8%, 5-year bond that pays semiannual interest of $204,000 ($5,100,000 × 8% × ½), receiving cash of $5,312,072. Journalize the first interest payment and the amortization of the related bond premium Round to the nearest dollar If an amount box does not require an entry, leave it blank.
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $90,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $ 6,533 $ 83,467 (1) June 30, first payment 5,716 84,284 (2) December 31, second payment 4,899 85,101 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1.(b) The first interest payment on June 30.(c) The second interest payment on December 31.
Paulson Company issues 10%, four-year bonds, on January 1 of this year, with a par value of $98,000 and semiannual interest payments. Carrying Value $ 91,307 92,144 92,981 Semiannual Period-End Unamortized Discount (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment $ 6,693 5,856 5,019 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 > Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Record entry Clear entry View general journal
Premium amortization On the first day of the fiscal year, a company issues a $3,600,000, 11%, 10-year bond that pays semiannual interest of $198,000 ($3,600,000 x 11% x 1/2), receiving cash of $4,068,286. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash Feedback ▼ Check My Work ✓ 198,000 Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond.
x Premium Amortization On the first day of the fiscal year, a company issues a $8,500,000, 9%, 10-year bond that pays semiannual interest of $382,500 ($8,500,000 × 9% × ½), receiving cash of $9,077,589. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank fill in the blank Premium on Bonds Payable fill in the blank fill in the blank Cash
Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000 and semiannual interest payments. Semiannual Period-End Unamortized Discount (0) (1) (2) January 1, issuance June 30, first payment December 31, second payment $6,933 6,066 5,199 Carrying Value $103,067 103,934 104,801 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 3O. (c) The second interest payment on December 31. es View transaction list Journal entry worksheet 3 Record the issue of bonds with a par value of $110,000 cash January 1. Note: Enter debits before credits. Date General Journal Debit Credit January 01 Prev 1 of 2 Next > 中

es and Equities Computation es for issuing bonds and amortizing premium by straight-line method ey Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $6,400,000 of 4-year, 7% bonds at a market (effective) interest rate of 5%, receiving cash of $6,858,887. est is payable semiannually on April 1 and October 1. Cash Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. Account Credit Premium on Bonds Payable Bonds Payable Interest Expense Premium on Bonds Payable Cash Feedback Account eBook Check My Work The market rate of interest is less than Check My Work Debit Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for 6 months, using the straight-line method. Round to the nearest dollar. If an amount box does ot require an entry, leave it blank. 6,858,887 0 0 6,400,000 Debit Credit 000 Show Me How 0 000 c.…
Question Content Area Oak Branch Inc. issued $860,000 of 7%, 10-year bonds when the market rate was 6%. They received $923,988. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount. Cash InterestPayment Interest onCarrying Value Amortization ofPremium Carrying Value Jan. 1, Year 1 $fill in the blank 1 June 30, Year 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 fill in the blank 5 Dec. 31, Year 1 fill in the blank 6 fill in the blank 7 fill in the blank 8 fill in the blank 9 June 30, Year 2 fill in the blank 10 fill in the blank 11 fill in the blank 12 fill in the blank 13 Dec. 31, Year 2 fill in the blank 14 fill in the blank 15 fill in the blank 16 fill in the blank 17 June 30, Year 3 fill in the blank 18 fill in the blank 19 fill in the blank 20 fill in the…
Premium Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%, 9-year bond that pays semiannual interest of $105,000 ($3,500,000 × 6% × ½), receiving cash of $4,322,808. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
Exercise 10-5 (Algo) Straight-Line: Recording bond issuance and discount amortization LO P2 Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $90,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment (2) December 31, second payment Unamortized Discount $ 6,533 5,716 4,899 Carrying Value $ 83,467 84,284 85,101 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The second interest payment on December 31. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bonds on January 1. Note: Enter debits before credits. Date January 01 General Journal Debit Credit