Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P95,000. Ace Company's journal entry on the first semi-annual interest payment would include

Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P95,000. Ace Company's journal entry on the first semi-annual interest payment would include

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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Oak Branch Inc. issued $820,000 of 6%, 10-year bonds when the market rate was 5%. They received $883,930. 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 Interest Interest on Amortization of Payment Carrying Value Premium Carrying Value Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec. 31, Year 3
Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments. Annual Annual Interest Annual Interest Amortization of Ending Carrying Interest Expense Payment Premium Value Period 1 2 3 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). [HINT - You definitely will want to use this EXCEL spreadsheet Chapter13 HW-02 #1 #2 Worksheets.xlsx a to assist in your calculations.)
Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $421,840. Prepare an amortization table for the first three payments.
Sheridan Company issued $3500000 of 6%, 10-year bonds on one of its interest dates for $3023000 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount will include a credit to Discount on Bonds Payable for $31840. credit to Discount on Bonds Payable for $34387. credit to Cash for $244387. debit to Bond Interest Expense for $210000.
Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $255,333. The annual market rate is 6% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments.
On January 1, a company issues bonds dated January 1 with a par value of $600,000. The bonds mature in 3 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The bonds are sold for $564,000. The journal entry to record the first interest payment using straight-line amortization is:
$60,000, 5-year bonds, with a 10% stated rate of interest are issued at $55,584 on January 1, 2021. Interest payments are made semi-annually on June 30 and December 31. How much interest expense would be recognized on the first interest payment date? Assume straight-line amortization is used. Round your answer to the nearest dollar.
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Silcon Company issued P800,000 of 6%, 10-year bonds on one of its interest dates for P690,960 to yield an effective annual rate of 8%. The effective-interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest andamortization of discount will include a Group of answer choices credit to Cash for P55,277 debit to Bond Interest Expense for P48,000 credit to Discount on Bonds Payable for P7,277. debit to Bond Interest Expense for P64,000