Bonds with a stated interest rate of 9% and a face value totaling $610,000 were issued for $634.400 on January 1 2021, when the market interest rate was 8%. The company uses effective-interest bond amortization Required: Determine the carrying value of the bonds at December 31, 2022. (Round your answer to nearest whole dolar) Carrying Value

Bonds with a stated interest rate of 9% and a face value totaling $610,000 were issued for $634.400 on January 1 2021, when the market interest rate was 8%. The company uses effective-interest bond amortization Required: Determine the carrying value of the bonds at December 31, 2022. (Round your answer to nearest whole dolar) Carrying Value

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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On January 1, 2024, Nurses Credit Union (NCU) issued 5%, 20-year bonds payable with face value of $300,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 104. Journalize the following bond transactions: i (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) a. Journalize the issuance of the bonds on January 1, 2024. Accounts and Explanation Date 2024 Jan. 1 Debit Credit More info a. Issuance of the bonds on January 1, 2024. b. Payment of interest and amortization on June 30, 2024. c. Payment of interest and amortization on December 31, 2024. d. Retirement of the bond at maturity on December 31, 2043, assuming the last interest payment has already been recorded. Print Done X
Please answer both. This is part A and B
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Subject: acounting
On January 1, 2021, Loop Raceway issued 500 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2023. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $487,099. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue, the interest payments on December 31, 2021 and 2022, the interest and face value payment on December 31, 2023 and the bond retirement. Assume the bonds are retired early on January 1, 2023 instead of at their maturity date of 12/31/2023, record the entry to retire the bonds early assuming a price of 99.
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