Bonds issued at $5,000,000, 12%, 10 year bonds on July 2020. Interest is paid semiannually at July 1st and January 1st. The bonds were sold at effective yield of 12.5%. The effective interest method of amortization is used. What journal entry would you record to call bonds at 7/2/2023 at 102?
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Bonds issued at $5,000,000, 12%, 10 year bonds on July 2020. Interest is paid semiannually at July 1st and January 1st. The bonds were sold at effective yield of 12.5%. The effective interest method of amortization is used. What
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- Omar Company issued a $140,000, 11%, 10-year bond payable at 97 on January 1, 2024 Interest is paid semiannually on January 1 and July 1 Read the requirements Requirement 1. Journalize the issuance of the bond payable on January 1, 2024 (Record debits first, then credits Select explanations on the last line of the journal entry.) Date Accounts and Explanation Debit Credit 2024 Jan. 1Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest annually. a.) Prepare the journal entry to record the issuance of the bonds. Account Titles and Explanation Debit Credit b.) Compute the total cost of borrowing for these bonds. Total cost of borrowing $ ? c.) Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit d.) Compute the total cost of borrowing for these bonds, assuming the bonds were issued at 101. Total cost of borrowing $ ?PB6. 13.3 Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
- Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry on January 1, 2021, to record interest paid. what is the account title or explanation ? what is debit or credited ?On January 1, 2022, Wildhorse Company issued $387,500, 7%, 5-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (b) Date Jan. 1, 2022 eTextbook and Media List of Accounts Save for Later (c) Account Titles and Explanation Date Dec. 31, 2022 Prepare the journal entry to record the accrual of interest on December 31, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) eTextbook and Media Account Titles and Explanation List of Accounts Save for Later Date Jan. 1, 2023 Debit Account Titles and Explanation Credit Attempts: 0 of 5 used Submit Answer Debit Prepare the journal entry to record the payment of interest on January 1, 2023. (Credit account titles are automatically Indented when amount is entered. Do not indent manually.) Debit Credit Attempts: 0 of 5…On November 1, 2020, your company issued $600,000 of 5 year 9% bonds when the market interest rate was 8%. The bonds pay interest annually on October 31 each year. Your company uses the interest method of amortization. Calculate the bond selling price on November 1, 2020. Please show the factors you entered into your calculator or spreadsheet to calculate the amount. Prepare the bond entries from November 1, 2020 through December 31, 2021 (one year and two months), assuming your company’s year ends on December 31 and your company does NOT make reversing entries on January 1. Based upon the entries in part “b.” indicate any current liabilities (and the balance in the current account) your company would report on the balance sheet on December 31, 2021 (the second year). Based upon the entries in part “b.” indicate any NONcurrent liabilities (and the balance in the account) your company would report on December 31, 2021 (the second year)
- Complex Solution Company issues P2 M face value, 9%, 10-year bonds payable on December 31, 2023. Interest is paid semi-annually each June 30 and December 31. The bonds were sold at a price of 98. Complex uses the straight-line method of amortizing bond discounts and premium. **Compute for Amount of Bond Premium or Discount on December 31, 2023. **Bond Interest Expense for 2024 with respect to these bonds **Carrying Value of the bonds as of December 31, 2024.Hernandez company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. this price resulted in an effective-interest rate of 6% on the bonds. interest is payable annually on January 1. hernandex]z uses the effective-interest method to amortize bond premium or discount. prepare the journal entry to record the accrual interest and the premium amortization on December 31, 2022.Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January 1, 2022, at face value. Interest is paid each January 1. what is the journal entry to record the sale of these bonds on January 1, 2022. what is the adjusting journal entry on December 31, 2022, to record interest expense. what is the journal entry on January 1, 2023, to record interest paid.
- X2 issued callable bonds on January 1, 2021. The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance until maturity: Date Cash Paid InterestExpense Decrease inCarrying Value CarryingValue 01/01/2021 124,380 12/31/2021 15,000 14,304 696 123,684 12/31/2022 15,000 14,224 776 122,907 12/31/2023 15,000 14,134 866 122,042 12/31/2024 15,000 14,035 965 121,076 12/31/2025 15,000 13,924 1,076 120,000 What is the annual market interest rate on the bonds? Multiple Choice 5.8%. 6.3%. 11.5%. 12.5%.tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021A company issues $ 25150000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $ 24568662. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2020 balance sheet? (Round answer to 0 decimal place, e.g. 52.) $ 24599916 $ 25150000 $ 24584313 $ 24576370
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