anuary 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest receivable annually on June 30 and December 31 each year. ming the market interest rate on the issue date is 8%, Dora will purchase the bonds for $159,869.
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- Required information [The following information applies to the questions displayed below.] On January 1, Dora purchases 175 of the $1,000, 7%, 15-year bonds issued by Splash City, with interest receivable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, Dora will purchase the bonds for $159,869. 2. Record the purchase of the bonds by Dora on January 1 and the receipt of the first two semiannual interest payments on June 30 and December 31. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest whole dollar amount.)On December 31, 2021, Danny purchased $23,000 of newly issued bonds of Howard Corporation for $19,045. The bonds are dated December 31, 2021. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirement. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Year Interest Received December 31, 2021 June 30, 2022 December 31, 2022 Amortization of Original Issue Discount Taxpayers Basis Interest Income for the Bond The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Danny must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Danny must recognize as ordinary income for the first semiannual period is…Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $335,539. Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Change in Carrying Value Carrying Value Interest Date Cash Paid Expense 1/1/21 $ 335,539 6/30/21 12/31/21
- Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 10%, the bonds will issue at $283,405. Required: 1. Complete the first three rows of an amortization table. (Round your intermediate and final answers to the nearest whole dollar.) Change in Carrying Value Interest Carrying Value Date Cash Paid Expense 1/1/21 6/30/21 12/31/21! Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $350,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $382,187. Required: 1. Complete the first three rows of an amortization table. (Round your final answers to the nearest whole dollar.) Decrease in Carrying Value Interest Carrying Value Date Cash Paid Expense 1/1/21 6/30/21 12/31/21On December 31, 2020, Phil purchased $20,000 of newly issued bonds of Texas Corporation for $16,568. The bonds are dated December 31, 2020. The bonds are 9%, 10-year bonds paying interest semiannually on June 30 and December 31. The bonds are priced to yield 12% compounded semiannually. Read the requirements. Requirement a. What is the amount of the original issue discount? Start by completing the bond amortization table for the first year. (Round all amounts to the nearest dollar.) Amortization of Original Issue Discount Taxpayers Basis for the Bond Year Interest Received Interest Income December 31, 2020 June 30, 2021 December 31, 2021 The amount of the original issue discount is Requirement b. For the first semiannual period, what is the amount of the original issue discount Phil must recognize as ordinary income? (Round the amount to the nearest dollar.) The amount of the original issue discount Phil must recognize as ordinary income for the first semiannual period is Requirement…
- ! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $350,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $321,494. Required: 1. Complete the first three rows of an amortization schedule. (Round your intermediate and final answers to the nearest whole dollar.) Date 1/1/2024 6/30/2024 12/31/2024 Cash Paid Interest Expense Change in Carrying Value Carrying ValueHillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,835,994. Required:4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments.Required information [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,522. Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Date 01/01/2024 06/30/2024 12/31/2024 Cash Paid Interest Expense Change in Carrying Value Carrying Value
- ! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Splash City issues $370,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $406,617. Required: 1. Complete the first three rows of an amortization schedule. Note: Round your final answers to the nearest whole dollar. Date Cash Paid Interest Expense Change in Carrying Value Carrying Value 1/1/2024 6/30/2024 12/31/2024Required information [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $559,229. Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Date Cash Paid Answer is complete but not entirely correct. Carrying Change in Carrying Value Value Interest Expense 01/01/2024 06/30/2024 $ 42,000 $ 12/31/2024 42,000 X 44,738 $ 44,519 X 2,738 x 2,519 X $ 559,229 561,967 X 564,486 XRequired information [The following information applies to the questions displayed below.) On January 1, 2024, Splash City issues $300,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 8%, the bonds will issue at $279,615. Required: 1. Complete the first three rows of an amortization schedule. (Round your intermediate and final answers to the nearest whole dollar.) Cash Paid Interest Expense Change in Carrying Carrying Value Date Value 1/1/2024 6/30/2024 12/31/2024